# In the matter of Desein Private Limited IB No. 2697-ND-2019

> NCLT judgment dated 2022-01-28. Citation: TCN-2022-NCLT-04349. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 28 Jan 2022
- **Citation:** TCN-2022-NCLT-04349
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/desein-private-limited-ib-no-2697-nd-2019-baaf7b1d

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Rajender Kumar, an operational creditor, against M/s. Desein Private Limited, the corporate debtor. The applicant, a former employee, claims unpaid salary for seven months. The corporate debtor raised objections, alleging deficiency in service and inaccuracies in the applicant's claim due to an outstanding loan. The applicant refuted these claims, stating that leave was approved and the loan was adjusted.

## Facts

Rajender Kumar, an employee of M/s. Desein Private Limited from August 2007 to November 2018, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, for unpaid salary from April 2018 to October 2018. He served a demand notice dated 22.07.2019 under Section 8 of the Code. The corporate debtor, M/s. Desein Private Limited, objected, claiming deficiency in service by the applicant and inaccuracies in the claim due to an outstanding loan. The applicant contended that his leave was approved, and the loan was adjusted. The relieving certificate dated 01.11.2018 indicated no dispute at the time of resignation. The applicant also relied on a 'No dues' certificate dated 31.10.2018. The outstanding amount claimed was Rs. 4,44,265/- along with interest,

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## Issues and analysis

### Issue 1: Whether the applicant, Rajender Kumar, is entitled to initiate Corporate Insolvency Resolution …

**Ratio:** The ratio is based on the interpretation of Section 9 of the IBC, which allows an

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**Reasoning:** The court reasoned that the applicant, being an employee with unpaid salary, qualifies as

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**Interpretation:** Section 9 of the IBC is interpreted to mean that an operational creditor can

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**Application:** The court applied this ratio to the facts, finding that the applicant had

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## Parties

- **Judges:** DHARMINDER…; SUMITA PURK…; +1 more
- **Appellants:** Rajender…
- **Respondents:** Desein Private…; M/s. Desein…

## Timeline

- **2007-08-01 — Applicant Employment…**: Rajender Kumar was employed…
- **2018-11-01 — Applicant R…**: Rajender Kumar was…

## 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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