# In the matter of APITCO Limited

> NCLT judgment dated 2024-01-02. Citation: TCN-2024-NCLT-03372. The applicants, former employees of APITCO Limited, approached the NCLT under Section 9 of the…

- **Court:** NCLT
- **Order date:** 2 Jan 2024
- **Citation:** TCN-2024-NCLT-03372
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/apitco-limited-7900080f

## Summary

### Background

The applicants, former employees of APITCO Limited, approached the NCLT under Section 9 of the Insolvency and Bankruptcy Code (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against their employer, M/s. APITCO Limited, citing non-payment of salaries. The applicants claimed a total due of Rs. 2,44,49,237/-, including principal and interest. The Corporate Debtor disputed the claim, raising concerns about the reconciliation of dues and the validity of the application filed through a General Power of Attorney (GPA).

## Facts

The applicants, former employees of APITCO Limited, filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against their employer due to non-payment of salaries. The total amount claimed was Rs. 2,44,49,237/-, including principal (Rs. 2,12,62,484/-) and interest (Rs. 31,86,753/-). The applicants served a demand notice on 01.12.2022, to which the Corporate Debtor replied on 13.12.2022, raising various grounds and requesting reconciliation of the amount. The applicants then sent emails to fix dates for reconciliation, but received no response. The applicants furnished appointment letters, resignation letters, statements of dues, and bank statements to prove the amount claimed. The

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the IBC is maintainable given the existence of a …

**Ratio:** Section 9 r/w Section 8 of the IBC lays down the procedure and formalities for initiation

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**Reasoning:** The court considered the arguments from both sides and the precedents set by the Supreme

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**Interpretation:** The existence of a genuine dispute, as defined by the Supreme Court, is a bar

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**Application:** In this case, the Corporate Debtor raised concerns about the reconciliation of

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Nethi Jagadish…
- **Respondents:** APITCO Li…
- **Advocates:** Mr.Yogesh…; Dr.S.V.Rama…

## Timeline

- **2019-10-01 — Non-payment of…**: Most of the applicants were not paid…
- **2022-12-01 — Demand N…**: Applicants served a demand…

## 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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