The appeal concerns whether a trade union can be considered an operational creditor under the Insolvency and Bankruptcy Code, 2016. The case involves a jute mill that was repeatedly closed and reopened before permanently closing on 07.03.2014. Proceedings were pending under the Sick Industrial Companies (Special Provisions) Act, 1985. The appellant, JK Jute Mill Mazdoor Morcha, issued a demand notice on 14.03.2017 on behalf of approximately 3000 workers for outstanding dues under Section 8 of the Code.
JK Jute Mill, the corporate debtor, faced repeated closures before permanently shutting down on 07.03.2014. Proceedings were initiated under the Sick Industrial Companies (Special Provisions) Act, 1985. The trade union, JK Jute Mill Mazdoor Morcha, representing approximately 3000 workers, issued a demand notice on 14.03.2017 for outstanding worker dues under Section 8 of the Insolvency and Bankruptcy Code (IBC). The NCLT and NCLAT dismissed the trade union's petition, arguing it couldn't be an operational creditor. The trade union appealed to the Supreme Court, contending it should be considered an operational creditor under the IBC, citing the Trade Unions Act, 1926. The respondent argued that trade unions don't provide services directly to the corporate debtor, and
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The jute mi…
The appellant issued a demand notice on behalf…
The appeal concerns whether a trade union can be considered an operational creditor under the Insolvency and Bankruptcy Code, 2016. The case involves a jute mill that was repeatedly closed and reopened before permanently closing on 07.03.2014. Proceedings were pending under the Sick Industrial Companies (Special Provisions) Act, 1985. The appellant, JK Jute Mill Mazdoor Morcha, issued a demand notice on 14.03.2017 on behalf of approximately 3000 workers for outstanding dues under Section 8 of the Code.
JK Jute Mill, the corporate debtor, faced repeated closures before permanently shutting down on 07.03.2014. Proceedings were initiated under the Sick Industrial Companies (Special Provisions) Act, 1985. The trade union, JK Jute Mill Mazdoor Morcha, representing approximately 3000 workers, issued a demand notice on 14.03.2017 for outstanding worker dues under Section 8 of the Insolvency and Bankruptcy Code (IBC). The NCLT and NCLAT dismissed the trade union's petition, arguing it couldn't be an operational creditor. The trade union appealed to the Supreme Court, contending it should be considered an operational creditor under the IBC, citing the Trade Unions Act, 1926. The respondent argued that trade unions don't provide services directly to the corporate debtor, and
…The jute mi…
The appellant issued a demand notice on behalf…