2021 (1) TMI 445 - Tri - Insolvency and Bankruptcy

Seeking permission to appellant to work out his remedies through the process of Labour Court and to get an award from the Labour Court in terms of the provisions contained in the Industrial Disputes Act and other parental enactments and to keep the appeal filed under Section 42 of IBC - Section 60(5) of the IBC - HELD THAT - The claims of about 65 workmen are pending before this Tribunal for consideration. The appellant along with others already approached before the Labour Court when the Corporate Debtor declared a lock out of its factory and the Labour Court, Ernakulam passed an award of December, 21, 2015 in tune with the settlement agreement dated December, 02, 2015 made between the Union and the Management of the Corporate Debtor. Now the claim put forward by the appellant is barred by Limitation as the appellant sought to have raised an industrial dispute and raised his claims before 2.12.2018. Now the appellant s approaching the Labour Court is nothing but a futile exercise, with an intention to delay and stop the entire process of recovering pending dues from the Corporate Debtor. Since the appellant has not produced any order of the Labour Court or such authorities, it is true that the Liquidator on his own cannot decide on disputed liabilities in the absence of a Civil Court decree or award. It is not for this Tribunal to give permission to a party to approach any statutory authority or any other forum. If the appellant is aggrieved by any order passed by the Liquidator, he is at liberty to approach this Tribunal under Section 42 of the IBC - After exhausting the remedy by filing appeal under Section 42 of the IBC, and this Tribunal is seized of the matter, the present IA is filed by the appellant with the stipulation that in the event this Tribunal is not inclined/proposed to decide the lis disputes arising in the appeal, the appellant may be permitted to approach the Labour Court under the Industrial Disputes Act , is only a delaying tactics in disposing of the Appeals pending before this Tribunal and also to delay the CIR Process. If the appellant is aggrieved by the order of this Tribunal, he is at liberty to approach the appropriate forum for redressal. Application dismissed - Dated the 8th day of January, 2021.

Summary

Issues:
- Interpretation of Section 60(5) of the IBC, 2016 regarding seeking remedies through the Labour Court
- Calculation of dues for an ex-employee of a company under liquidation
- Adjudication of claims under various statutory enactments
- Validity of seeking relief to keep an appeal pending till a decision from the Labour Court

Analysis:

1. The appellant filed an IA under Section 60(5) of the IBC seeking permission to pursue remedies through the Labour Court while keeping the appeal under Section 42 pending. The appellant, an ex-employee of a company under liquidation, claimed dues totaling ?22,23,679, but the Liquidator admitted only ?1,95,365. The appellant argued that the claims under various enactments were not properly computed by the Liquidator.

2. The Tribunal noted the history of the company's liquidation process, including the lack of resolution applicants leading to liquidation. The appellant contended that the claims for wages, bonus, and other benefits could not be sanctioned without decisions from statutory forums. The appellant cited a High Court judgment directing the Tribunal to decide the matter. The Liquidator opposed the IA, considering it frivolous and aimed at delaying the liquidation process.

3. The Tribunal emphasized that the appellant's attempt to approach the Labour Court was time-barred and a delay tactic. It highlighted that the Liquidator cannot decide disputed liabilities without a civil court decree or award. The Tribunal clarified that it was not its role to permit parties to approach other forums, especially when the matter was already before the Tribunal under Section 42 of the IBC.

4. Ultimately, the Tribunal found no merit in the IA and dismissed it. The decision was based on the appellant's lack of producing any Labour Court order or authority decision, the futility of approaching the Labour Court, and the attempt to delay the resolution process. The Tribunal emphasized that the appellant could seek redressal through appropriate forums if aggrieved by its orders.

This detailed analysis covers the interpretation of relevant legal provisions, calculation of dues, adjudication of claims, and the validity of seeking relief in the context of the legal judgment delivered by the National Company Law Tribunal Kochi Bench.