# In the matter of Reverse Logistics Company Pvt. Ltd. (IB)-1647(ND)2019

> NCLT judgment dated 2019-09-16. Citation: TCN-2019-NCLT-01455. The case involves an operational creditor, Mr. Kumud Mishra, seeking recovery of unpaid salary…

- **Court:** NCLT
- **Order date:** 16 Sept 2019
- **Citation:** TCN-2019-NCLT-01455
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/reverse-logistics-company-pvt-ltd-ib-1647nd2019-41b06877

## Summary

### Background

The case involves an operational creditor, Mr. Kumud Mishra, seeking recovery of unpaid salary from the corporate debtor, M/s Reverse Logistics Company Pvt. Ltd. Mr. Mishra was employed as an Assistant Manager (Finance) and his services were terminated without granting him the required notice period. He filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, for the unpaid salary for October, November, and December 2018, along with gratuity and salary for the notice period. A demand notice was issued, but the corporate debtor did not respond.

## Facts

Mr. Kumud Mishra was employed by M/s Reverse Logistics Company Pvt. Ltd. as an Assistant Manager (Finance). His employment was terminated without the stipulated one-month notice period. Mr. Mishra filed a petition seeking recovery of unpaid salary for October, November, and December 2018, amounting to Rs. 47,000 per month, along with gratuity for seven years (Rs. 1,89,808) and salary for the notice period (Rs. 47,000), totaling Rs. 3,77,808. A demand notice was sent on May 28, 2019, under Section 8 of the IBC, but the corporate debtor did not respond. The corporate debtor admitted the claim but stated an inability to liquidate the debt. No resistance was raised by the corporate debtor to the operational creditor's prayer.

## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The court reasoned that the operational creditor had filed a petition under Section 9 for

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover debts when

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**Application:** The ratio and reasoning apply to the facts because the operational creditor,

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## Parties

- **Judges:** Ina Mal…; Saroj Ra…
- **Appellants:** Kumud M…
- **Respondents:** M/s. Reverse…

## Timeline

- **2012-11-20 — Employment…**: Operational Creditor was employed as Assistant…
- **2018-12-01 — Unpaid Salary…**: Period for which unpaid salary is claimed…

## 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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