# In the matter of The Indure Private Limited

> NCLT judgment dated 2023-08-01. Citation: TCN-2023-NCLT-02251. Mr. Ishwari Chand Kushwaha, the Operational Creditor, filed an application on 2019-10-15 under…

- **Court:** NCLT
- **Order date:** 1 Aug 2023
- **Citation:** TCN-2023-NCLT-02251
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/the-indure-private-limited-d17506e9

## Summary

### Background

Mr. Ishwari Chand Kushwaha, the Operational Creditor, filed an application on 2019-10-15 under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. The Indure Private Limited, the Corporate Debtor. The basis for the application was the Corporate Debtor's alleged default in payment of Rs. 5,57,158/-, which included unpaid salary, bonus, medical reimbursements, Provident Fund, Gratuity, Leave encashments, and interest. The Corporate Debtor contested the application, claiming a pre-existing dispute and forum shopping by the Operational Creditor, who had also filed a complaint before the Deputy Labour Commissioner. The Corporate Debtor also filed an application seeking to settle the

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## Facts

Mr. Ishwari Chand Kushwaha, an Operational Creditor and former employee of M/s. The Indure Private Limited (Corporate Debtor), filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP against the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor had defaulted in paying Rs. 5,57,158/-, including unpaid salary for six months (July to December 2018), bonus, medical reimbursements, Provident Fund, Gratuity, Leave encashments, and interest as of 2017-04-01. The Operational Creditor served a statutory demand notice on 2019-07-28. The Corporate Debtor contended that a pre-existing dispute existed because the Operational Creditor had filed a complaint before the Deputy Labour Commissioner under the

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9 proceedings are not the appropriate forum for resolving contractual disputes

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**Reasoning:** The court observed that a dispute existed between the parties regarding the employee's

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**Interpretation:** The existence of a pre-existing dispute, particularly one that is already under

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**Application:** In this case, the Operational Creditor had filed a complaint before the Deputy

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** Ishwari Chand…
- **Respondents:** The Indure…; M/s. The Indure…
- **Advocates:** Vishal R…; Prashant…; +3 more

## Timeline

- **2010-05-28 — Appointment Le…**: Date of the Appointment Letter establishing the Contract of Employment between the…
- **2019-10-15 — Application…**: Mr. Ishwari Chand Kushwaha, the Applicant/Operational Creditor, filed an application…

## 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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