# In the matter of SPEl Semiconductor Limited IBA-766-2020

> NCLT judgment dated 2023-01-18. Citation: TCN-2023-NCLT-05014. The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by R.…

- **Court:** NCLT
- **Order date:** 18 Jan 2023
- **Citation:** TCN-2023-NCLT-05014
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/spel-semiconductor-limited-iba-766-2020-f4ff6a02

## Summary

### Background

The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by R. Chandru, an operational creditor, against SPEL Semiconductor Limited, the corporate debtor. The operational creditor, along with 32 other employees, claimed a sum of Rs. 1,61,67,055/- consisting of salary, leave salary, medical reimbursement, gratuity, thrift society, and interest accrued, which were due and payable by the corporate debtor. The corporate debtor filed a preliminary reply stating that the claims were false and baseless, and some claims were hit by limitation.

## Facts

R. Chandru, along with 32 other employees of SPEL Semiconductor Limited, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming unpaid dues amounting to Rs. 1,61,67,055/-. These dues included salary, leave salary, medical reimbursement, gratuity, thrift society contributions, and accrued interest. The date of default was stated as 30.09.2020. SPEL Semiconductor Limited contested the application, asserting that the claims were false and baseless, with some claims being time-barred. The Corporate Debtor admitted substantial portion of the 'Debt' and undertook repayment of the said amount in three equated monthly instalments. The Corporate Debtor filed IA(IBC)/851/2022 seeking an extension of time for payment. The entire amount has been

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** Section 10A of the Insolvency and Bankruptcy Code, 2016, suspends the initiation of

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**Reasoning:** The court considered the provisions of Section 10A and the notifications issued

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**Interpretation:** Section 10A provides a temporary suspension of CIRP initiation for defaults

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**Application:** In this case, the Operational Creditor construed 30.09.2020 as the date of

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## Parties

- **Judges:** Dr.Deepti…; SAMEER…
- **Appellants:** R.Cha…
- **Respondents:** SPEL Semiconductor…; M/s. SPEL…

## Timeline

- **2020-12-08 — Application…**: Mr. R. Chandru filed an…
- **2020-09-30 — Date of D…**: The Operational Creditor stated the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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