# In the matter of Sreyas Holistic Remedies Private Limited CP(IB) No. 791-9-HDB-2019

> NCLT judgment dated 2021-11-12. Citation: TCN-2021-NCLT-00524. This case involves an application filed by Ms. A. Chandani, an Operational Creditor, against…

- **Court:** NCLT
- **Order date:** 12 Nov 2021
- **Citation:** TCN-2021-NCLT-00524
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sreyas-holistic-remedies-private-limited-cpib-no-791-9-hdb-2019-e85800ae

## Summary

### Background

This case involves an application filed by Ms. A. Chandani, an Operational Creditor, against M/s. Shreyas Holistic Remedies Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed a default of Rs. 3,74,004/- towards unpaid salary and provident fund dues. The Corporate Debtor contested the claim, alleging that the Operational Creditor was guilty of misconduct, including poaching clients and staff, and had breached the terms of her employment contract by taking an unsanctioned vacation to Bali. The Corporate Debtor also claimed that the Operational Creditor had falsely claimed salary dues and that the PF contributions were already remitted.

## Facts

Ms. A. Chandani, an ex-employee of Shreyas Holistic Remedies Private Limited, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 3,74,004/- towards unpaid salary (Rs. 1,95,000/- for September to November 2018) and provident fund dues (Rs. 1,79,004/- from March 2015 to December 2018), plus interest. She alleged that the Corporate Debtor terminated her services on 08.10.2018 without proper notice or salary. The Corporate Debtor denied the claims, stating that Ms. Chandani was relieved from her job on 08.10.2018 and engaged in misconduct, including poaching clients and staff, and taking an unsanctioned vacation to Bali. The Corporate Debtor also claimed that the PF contributions were already remitted and that Ms.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in paying the Operational Creditor's salary and provident …

**Ratio:** The principle is that a default must be established for the application under Section 9

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**Reasoning:** The court considered the arguments and evidence presented by both parties. The Corporate

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**Interpretation:** Section 9 of the IBC requires the existence of a debt and a default for the

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**Application:** In this case, the court found that the Corporate Debtor had presented a valid

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## Parties

- **Judges:** Venkata Ramakrishn…; Veera Brahma Rao…
- **Appellants:** A Chan…
- **Respondents:** Shreyas Holistic…

## Timeline

- **2014-08-14 — Letter of…**: Ms. A. Chandani was offered the post of 'Assistant Clinic Manager' vide Letter of Intent…
- **2018-10-08 — Termination of…**: The Corporate Debtor terminated the services of the Operational Creditor vide termination…

## 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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