# In the matter of Tecpro Infra-Projects Limited Company Petition No. (IB)- 1721 (PB)-2019

> NCLT judgment dated 2019-09-27. Citation: TCN-2019-NCLT-01192. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 27 Sept 2019
- **Citation:** TCN-2019-NCLT-01192
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tecpro-infra-projects-limited-company-petition-no-ib-1721-pb-2019-8671192a

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Mr. E N Sakthidharan Menon, an operational creditor, against M/S Tecpro Infra-Projects Limited, the corporate debtor. The applicant sought initiation of the Corporate Insolvency Resolution Process (CIRP) due to unpaid salary dues. The applicant was appointed as a Liaison Officer and his appointment was extended multiple times. The corporate debtor failed to pay the outstanding salary despite receiving the applicant's services. The corporate debtor also issued a circular expressing its inability to pay salary dues due to financial crisis.

## Facts

Mr. E N Sakthidharan Menon was appointed as a 'Liaison Officer' by M/S Tecpro Infra-Projects Limited (the Corporate Debtor) on 15.02.2012 with a salary of Rs. 30,000 per month. His appointment was extended for two years from 16.02.2013 to 15.02.2015. The applicant's last salary was for September 2017. The applicant sent reminder letters to the respondent to release his salary from October 2017. On 24.12.2018, the Corporate Debtor issued a circular expressing its inability to pay salary dues due to financial crisis. On 15.02.2019, the respondent extended the applicant's appointment for one year from 16.02.2019 to 15.02.2020. The applicant issued a demand notice on 13.05.2019 for Rs. 4,49,220, representing salary dues from October 2017 to April 2019. The Corporate Debtor

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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 Insolvency and Bankruptcy Code, 2016, read with relevant rules, governs

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**Reasoning:** The tribunal found that the applicant had provided sufficient evidence to prove its

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP if there

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**Application:** The applicant, being an operational creditor, followed the procedure under

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## Parties

- **Judges:** Rajesh Daya…; SUMITA PURK…; +1 more
- **Appellants:** Mr.E N Sakthidhara…
- **Respondents:** Tecpro Infra-Proje…; M/s Tecpro…
- **Advocates:** Mr.Anish…; Rohit Kumar…; +1 more

## Timeline

- **2012-02-15 — Initial Appo…**: Mr. E N Sakthidharan Menon was appointed as 'Liaison Officer' with a salary of Rs. 30,000…
- **2013-02-16 — First Ext…**: Applicant's appointment…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60 — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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