# In the matter of Incab Industries Limited

> NCLT judgment dated 2024-04-18. Citation: TCN-2024-NCLT-01686. This is a contempt application filed by employees and workmen of Incab Industries Limited,…

- **Court:** NCLT
- **Order date:** 18 Apr 2024
- **Citation:** TCN-2024-NCLT-01686
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/incab-industries-limited-886089ec

## Summary

### Background

This is a contempt application filed by employees and workmen of Incab Industries Limited, claiming unpaid dues. The applicants sought directions for the release of their outstanding salaries, interim finance, and verification of their claims as creditors. The Corporate Insolvency Resolution Process (CIRP) was initiated against Incab Industries Limited on August 17, 2019, and a Resolution Professional (RP) was appointed. The applicants claimed that they were still employed during the CIRP period and entitled to their wages as CIRP costs.

## Facts

Eleven applicants, claiming to be employees and workmen of Incab Industries Limited, filed a contempt application seeking the release of outstanding salaries and interim finance. CIRP was initiated against Incab Industries Limited on August 17, 2019. The applicants claimed they were engaged in various activities, including accounting, secretarial work, computer data processing, and administration. They sought verification of their claims as creditors and payment of outstanding dues, including Employees Provident Fund and Employees State Insurance dues. The applicants contended that they were still employed during the CIRP period and entitled to their wages as CIRP costs. The Resolution Professional (RP) denied their engagement during the CIRP period. The applicants

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## Issues and analysis

### Issue 1: Whether the applicants have provided sufficient evidence to prove their engagement during the CIRP …

**Ratio:** The onus is upon the employees who have come up with their claims towards wages for a

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**Reasoning:** The court found that the applicants failed to provide sufficient evidence to prove their

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**Interpretation:** The court interpreted that the wages and salaries of the workmen/employees of

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**Application:** The court applied the ratio to the facts of the case and held that the

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## Parties

- **Judges:** Smt Bidisha…; D. Ar…
- **Appellants:** Jayanta Ba…
- **Respondents:** INCAB Industries…; Pankaj Kumar…

## Timeline

- **2019-08-17 — CIRP Init…**: CIRP was initiated in respect of the corporate debtor by an order passed by the…
- **2019-10-31 — Dues Cla…**: Applicants claimed total dues of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(13) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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