# In the matter of Tonk Water Supply Limited CP No. (IB)- 329-9-JPR-2019

> NCLT judgment dated 2022-09-29. Citation: TCN-2022-NCLT-00886. Shashi Kant Sharma, the applicant/operational creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 29 Sept 2022
- **Citation:** TCN-2022-NCLT-00886
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tonk-water-supply-limited-cp-no-ib-329-9-jpr-2019-a826af9a

## Summary

### Background

Shashi Kant Sharma, the applicant/operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against PSP Dynamic Private Limited, the respondent/corporate debtor, for alleged default in repayment of an operational debt amounting to Rs. 1,62,926. The applicant claimed that the corporate debtor failed to pay salary for September 2018 and 6 days of October 2018, along with reimbursement of expenses incurred from June 2018 to October 2018. The corporate debtor contended that there was a pre-existing dispute between the parties and that the applicant had not complied with the company's travel policy for expense reimbursement. The corporate debtor also argued that the

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## Facts

Shashi Kant Sharma (Applicant/Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against PSP Dynamic Private Limited (Respondent/Corporate Debtor) for an alleged default of Rs. 1,62,926. The applicant was employed by the corporate debtor and resigned on 09.10.2018, effective 06.10.2018, without serving a one-month notice period as required by the appointment letter. The applicant claimed unpaid salary for September 2018 and 6 days of October 2018, along with unreimbursed expenses from June 2018 to October 2018. The corporate debtor argued that there was a pre-existing dispute, and the applicant failed to comply with the company's travel policy for expense

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## Issues and analysis

### Issue 1: Whether there is an operational …

**Ratio:** The services of the applicant were confirmed, and at the time of termination, the

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**Reasoning:** The Adjudicating Authority observed that the applicant resigned without serving the

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**Interpretation:** The interpretation of the appointment letter's termination clause is crucial.

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**Application:** Since the applicant resigned without serving the required notice, the

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## Parties

- **Judges:** Deep Chandr…; Prasanta Kumar…
- **Appellants:** Shashi Kant…
- **Respondents:** PSP DYNAMIC PVT…

## Timeline

- **2017-06-15 — Employment St…**: The Operational Creditor started…
- **2017-09-20 — Appointment Letter…**: An appointment letter was…

## 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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