# In the matter of Onkar Electronics Private Limited Company Petition No. IB-1604-ND-2019

> NCLT judgment dated 2020-07-27. Citation: TCN-2020-NCLT-00966. The case involves an application filed by Arinjaya Kumar Jain, an operational creditor and…

- **Court:** NCLT
- **Order date:** 27 Jul 2020
- **Citation:** TCN-2020-NCLT-00966
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/onkar-electronics-private-limited-company-petition-no-ib-1604-nd-2019-67195c0f

## Summary

### Background

The case involves an application filed by Arinjaya Kumar Jain, an operational creditor and employee of M/s. Onkar Electronics Private Limited (the corporate debtor), under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor due to unpaid salary. The operational creditor claims that the corporate debtor has failed to pay his salary since September 2018, with a total outstanding amount of Rs. 2,00,000/-. Despite repeated requests and a demand notice, the corporate debtor failed to make the payment.

## Facts

Arinjaya Kumar Jain, the applicant, is an employee of M/s. Onkar Electronics Private Limited, the corporate debtor. He served as Manager-Finance and was entitled to a salary of Rs. 50,000 per month. The corporate debtor failed to pay his salary since September 2018, resulting in an outstanding debt of Rs. 2,00,000. The operational creditor sent a demand notice dated 05.06.2019 under Section 8 of the IBC, 2016, which was duly delivered to the corporate debtor. The corporate debtor acknowledged its liability in its reply to the demand notice. The corporate debtor was incorporated on 23.08.2013 under the Companies Act, 2013. The Tribunal proceeded ex-parte as the corporate debtor did not appear despite service of notice. The operational creditor filed an affidavit stating

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 is …

**Ratio:** Section 9 of the IBC, 2016 outlines the requirements for an operational creditor to

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**Reasoning:** The Tribunal found that the operational creditor had provided sufficient evidence,

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**Interpretation:** Section 9 of the IBC, 2016 is interpreted to mean that if the operational

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**Application:** The ratio and reasoning were applied to the facts of the case, where the

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## Parties

- **Judges:** DEEPTI M…; HEMANT KUMAR…
- **Appellants:** ARINJAYA KUMAR…
- **Respondents:** M/s. ONKAR…; M/s. ONKAR…

## Timeline

- **2013-08-23 — Incorporation of…**: M/s. Onkar Electronics Private Limited was…
- **2018-09-01 — Default in Salary…**: The Corporate Debtor stopped paying the salary of the Operational Creditor from September…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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