# In the matter of Chikai Global Private Limited

> NCLT judgment dated 2023-10-19. Citation: TCN-2023-NCLT-01100. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 19 Oct 2023
- **Citation:** TCN-2023-NCLT-01100
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/chikai-global-private-limited-7b836ed1

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Siddharth Sharma and other ex-employees of Chikai Global Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against the company for unpaid employment dues. The application was filed jointly by 29 ex-employees, claiming to be Operational Creditors. The Corporate Debtor is in the business of providing accommodation services to students intending to study abroad. The Operational Creditors claim that the Corporate Debtor withheld salaries, bonuses, and other benefits from April 2021. The date of default is stated to be 31.10.2021.

## Facts

Siddharth Sharma and 28 other ex-employees of Chikai Global Private Limited filed a joint application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against the company. The Corporate Debtor, Chikai Global Private Limited, is in the business of providing accommodation services to students intending to study abroad. The Operational Creditors claim that the Corporate Debtor withheld salaries, bonuses, and other benefits from April 2021. The total amount claimed is Rs. 1,66,72,743. The date of default is stated to be 31.10.2021. The Corporate Debtor acknowledged variable pay, incentives, bonus and other benefits accrued therein. The Corporate Debtor argued that the ex-employees were governed

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## Issues and analysis

### Issue 1: Whether a joint application under Section 9 of the I & B Code is permitted to be filed by …

**Ratio:** The Code permits a joint application to be filed by workmen/employees claiming to be

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**Reasoning:** The Tribunal considered the provisions of the Code and the decision of the Hon'ble

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**Interpretation:** The interpretation of Section 9 of the IBC, read with Form 5, allows for joint

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**Application:** In this case, the Tribunal found that a joint application by ex-employees is

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; BINOD KUMAR…
- **Appellants:** Siddharth…
- **Respondents:** Chikai Global…; Chikai Global P.…

## Timeline

- **2021-04-01 — Corporate Debtor's…**: Corporate Debtor formalized a policy of withholding 50% of employee remuneration due to…
- **2021-10-31 — Date of D…**: Stated date of default…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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