# In the matter of Karvy Digikonnect Limited

> NCLT judgment dated 2025-04-22. Citation: TCN-2025-NCLT-01118. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 22 Apr 2025
- **Citation:** TCN-2025-NCLT-01118
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/karvy-digikonnect-limited-aea98e0a

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by multiple operational creditors (ex-employees) against Karvy Digikonnect Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to unpaid salaries and benefits amounting to Rs. 1,71,09,652/-.

## Facts

Nazim Shaikh and others, former employees of Karvy Digikonnect Limited, filed an application under Section 9 of the IBC as operational creditors.

The operational creditors claimed a total outstanding amount of Rs. 1,71,09,652/- for unpaid salaries and benefits.

The Corporate Debtor, Karvy Digikonnect Limited, failed to clear the dues of the operational creditors despite repeated requests.

The operational creditors issued a demand notice dated 15.03.2023 to the Corporate Debtor.

The Corporate Debtor did not respond to the demand notice or make any payment to the operational creditors.

The Adjudicating Authority decided to proceed ex-parte against the Respondent/Corporate Debtor as they did not appear before the authority despite several notices.

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## Issues and analysis

### Issue 1: Whether a joint application under Section 9 of the I&B Code is permitted to be filed by several …

**Ratio:** A joint application by ex-employees under

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**Reasoning:** The note to Form 5 states that where workmen/employees are operational creditors, the

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**Interpretation:** The provision allows for joint applications by operational creditors who are

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**Application:** The Adjudicating Authority held that a

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; Sanjeev R…
- **Appellants:** Nazim S…; Sunil D…; +4 more
- **Respondents:** Karvy Digikonnect…
- **Advocates:** Dilip…

## Timeline

- **2017-04-25 — Appointment Letters…**: Corporate Debtor appointed Operational Creditors through appointment letters dated…
- **2023-03-15 — Demand Notice…**: Operational Creditors issued Form 3 'Demand Notice' dated 15.03.2023 to the Corporate…

## 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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