# In the matter of Propurban Advisory Services Private Limited C.P. (IB) No.234-BB-2018

> NCLT judgment dated 2019-06-24. Citation: TCN-2019-NCLT-02805. Mr. Amit Naidu, an operational creditor, filed C.P. (IB) No.234/BB/2018 under Section 9 of the…

- **Court:** NCLT
- **Order date:** 24 Jun 2019
- **Citation:** TCN-2019-NCLT-02805
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/propurban-advisory-services-private-limited-cp-ib-no234-bb-2018-a6914d9d

## Summary

### Background

Mr. Amit Naidu, an operational creditor, filed C.P. (IB) No.234/BB/2018 under Section 9 of the IBC, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. PropUrban Advisory Services Private Limited, the corporate debtor, due to a default of Rs. 19,27,828/-. Mr. Naidu claimed unpaid salary dues from his employment with the corporate debtor. The corporate debtor opposed the petition, contending that Mr. Naidu's services were terminated, and his claims were unsubstantiated. The NCLT, Bengaluru Bench, considered the arguments and evidence presented by both parties.

## Facts

Mr. Amit Naidu was appointed as the Associate Vice President-Sales & Business Development, West Region, of M/s. PropUrban Advisory Services Private Limited (formerly known as Bluering Realtech Private Limited) on May 15, 2017. He joined the services on May 15, 2017, and worked until July 18, 2018. Mr. Naidu received a salary of Rs. 50,000/- until July 2017, but payments stopped thereafter. He repeatedly requested the Corporate Debtor to pay his salary dues. On November 13, 2017, the Corporate Debtor informed Mr. Naidu of its inability to pay the salary. On March 15, 2018, Mr. Naidu issued an email demanding his due salary from August 2017 to May 2018, totaling Rs. 19,50,000/-. In April 2018, the Corporate Debtor paid Rs. 2,00,000/- against the pending salary. The

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has proved the existence of a debt and default on the part of the …

**Ratio:** Section 9 of the IBC, 2016 allows an operational creditor to initiate CIRP against a

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**Reasoning:** The NCLT found that the Operational Creditor had submitted sufficient evidence, including

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**Interpretation:** The legal issue involves the interpretation of Section 9 of the IBC, 2016,

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**Application:** The NCLT applied the ratio to the facts of the case and found that the

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** Amit N…
- **Respondents:** PropUrban…

## Timeline

- **2016-05-10 — Incorporation of…**: M/s. PropUrban Advisory Services Private Limited (formerly known as Bluering Realtech…
- **2017-05-15 — Appointment of…**: Mr. Amit Naidu was appointed as the Associate Vice President-Sales & Business…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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