# In the matter of Hindustan Zinc. Ltd. CP No. (IB)-49-9-PR-2020

> NCLT judgment dated 2022-08-12. Citation: TCN-2022-NCLT-01374. Harsh Vyas, the applicant, filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 12 Aug 2022
- **Citation:** TCN-2022-NCLT-01374
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hindustan-zinc-ltd-cp-no-ib-49-9-pr-2020-735de0ab

## Summary

### Background

Harsh Vyas, the applicant, filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, claiming to be an Operational Creditor seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Hindustan Zinc Ltd., the Corporate Debtor. The applicant's claim is based on unpaid performance pay. The Corporate Debtor contended that all dues were paid and that the applicant's performance was rated as 'Needs Improvement,' making him ineligible for performance pay under the company's scheme. The Corporate Debtor also argued that a pre-existing dispute existed regarding the performance pay claim.

## Facts

Harsh Vyas, the applicant, was an employee of Hindustan Zinc Ltd. (Corporate Debtor). He claimed unpaid performance pay of Rs. 6.54 Lacs for the year 2015-16. He resigned from the Vedanta Group on 23.01.2017 and was relieved on 24.03.2017. The Corporate Debtor argued that the applicant's performance was rated as 'Needs Improvement' under the Performance Pay Scheme, making him ineligible for the incentive. The Corporate Debtor also stated that the applicant was transferred internally to Hindustan Zinc Ltd. on 20.12.2016. The Corporate Debtor introduced the Performance Pay Scheme on 17.02.2017 for the FY 2016-17. The applicant sent a legal notice to the Corporate Debtor on 28.03.2018 demanding the claimed amount. The Corporate Debtor disputed the Operational Creditor's

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## Issues and analysis

### Issue 1: Whether a pre-existing dispute exists between the Operational Creditor and the Corporate Debtor …

**Ratio:** The existence of a pre-existing dispute, meaning a dispute raised before the issuance of

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**Reasoning:** The court relied on the Supreme Court's judgment in Civil Appeal No. 4583 of 2020, which

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**Interpretation:** The term 'pre-existing dispute' is interpreted to mean a dispute raised by the

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**Application:** In this case, the Corporate Debtor had disputed the applicant's claim for

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## Parties

- **Judges:** Deep Chandr…; Prasanta Kumar…
- **Appellants:** Harsh…
- **Respondents:** Hindustan Zinc.…
- **Advocates:** Harsh…; U.N. Ti…

## Timeline

- **2012-05-21 — Applicant Joins Vedanta…**: The Applicant joined the Vedanta…
- **2016-12-20 — Internal Transfer to…**: Applicant got an internal transfer to…

## 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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