# In the matter of SARE Homes Project Services Pvt. Ltd. (IB) 296 (ND)-2020

> NCLT judgment dated 2021-02-04. Citation: TCN-2021-NCLT-03123. The case involves an application filed under Section 9 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 4 Feb 2021
- **Citation:** TCN-2021-NCLT-03123
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sare-homes-project-services-pvt-ltd-ib-296-nd-2020-3f43c34f

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency & Bankruptcy Code, 2016, by Ajai Kumar Singh, an operational creditor, against SARE Homes Project Services Pvt. Ltd., the corporate debtor. The operational creditor claimed inability of the corporate debtor to liquidate its operational debt. The applicant joined the corporate debtor on 03.10.2018 as a General Manager-Finance with a fixed CTC of Rs. 14,50,000/- per annum. The corporate debtor deputed the applicant to SARE Saamag Realty Pvt. Ltd. The applicant resigned on 22.01.2019 due to not receiving salary on time. The applicant sent a demand notice under Section 8 of the Code on 19.03.2019 for outstanding salary of Rs. 3,97,890/-. The corporate debtor replied on 04.04.2019 stating that the

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## Facts

Ajai Kumar Singh joined SARE Homes Project Services Pvt. Ltd. on 03.10.2018 as General Manager-Finance with a CTC of Rs. 14,50,000/- per annum. He was deputed to SARE Saamag Realty Pvt. Ltd. The terms of deputation stipulated that if SARE Saamag Realty Pvt. Ltd. failed to pay his salary, SARE Homes Project Services Pvt. Ltd. would ensure payment. Singh resigned on 22.01.2019 due to non-payment of salary. He received salary for only one month during his tenure. He sent a demand notice on 19.03.2019 claiming Rs. 3,97,890/-. The Corporate Debtor replied on 04.04.2019 stating that Singh was not their employee. The appointment letter was issued by SARE Homes Project Services Pvt. Ltd. The resignation was accepted by the Corporate Debtor. The outstanding dues pertained to

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the …

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

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**Reasoning:** The court considered the submissions and documents presented by the applicant, including

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**Interpretation:** Section 9 provides the mechanism for operational creditors to recover their

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**Application:** The court found that the applicant had established a default in payment of an

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** Ajai Kumar…
- **Respondents:** SARE HOMES…

## Timeline

- **2018-10-03 — Applicant Joins…**: Ajai Kumar Singh joined SARE Homes Project…
- **2018-11-01 — Default Perio…**: The period of default for salary…

## 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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