The applicants, former employees of APITCO Limited, filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against APITCO for non-payment of salaries. The applicants claimed a total due of Rs. 2,44,49,237/-, including principal and interest. APITCO disputed the claim, citing the need for reconciliation of accounts and questioning the validity of the General Power of Attorney (GPA) used by the applicants. The NCLT considered arguments from both sides, including the applicability of Section 4 of the IBC regarding the minimum default amount and precedents related to joint applications by operational creditors.
Several former employees of APITCO Limited, acting through a General Power of Attorney (GPA), filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against APITCO for unpaid salaries. The total claim amounted to Rs. 2,44,49,237/-, including principal and interest. The employees' salaries were unpaid from October 2019 onwards, leading to resignations and superannuation. APITCO disputed the claim, stating that the accounts needed reconciliation and questioned the validity of the GPA. APITCO also argued that the individual claims of the employees did not meet the minimum threshold of Rs. 1 crore required under Section 4 of the IBC. The applicants provided documents such as appointment
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The applicants, former employees of APITCO Limited, filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against APITCO for non-payment of salaries. The applicants claimed a total due of Rs. 2,44,49,237/-, including principal and interest. APITCO disputed the claim, citing the need for reconciliation of accounts and questioning the validity of the General Power of Attorney (GPA) used by the applicants. The NCLT considered arguments from both sides, including the applicability of Section 4 of the IBC regarding the minimum default amount and precedents related to joint applications by operational creditors.
Several former employees of APITCO Limited, acting through a General Power of Attorney (GPA), filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against APITCO for unpaid salaries. The total claim amounted to Rs. 2,44,49,237/-, including principal and interest. The employees' salaries were unpaid from October 2019 onwards, leading to resignations and superannuation. APITCO disputed the claim, stating that the accounts needed reconciliation and questioned the validity of the GPA. APITCO also argued that the individual claims of the employees did not meet the minimum threshold of Rs. 1 crore required under Section 4 of the IBC. The applicants provided documents such as appointment
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