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TMI Blog2018 (5) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... nt application preferred by the workmen operational creditors is complete and there has been clear admission of default by the respondent corporate debtor. The admission by respondent goes to show that the respondent corporate debtor committed default in payment of the dues of workmen even after demand made by the workmen operational creditors. Once the application is complete and in the absence of any resistance from corporate debtor, the application is liable to be admitted. Therefore, on fulfilment of the requirements of Section 9 (5) (i) (a) to (d) of the Code, the present application is admitted. - Company Petition No. 35 (ND)/2018 - - - Dated:- 5-3-2018 - MR. M. M. KUMAR AND MR. S. K. MOHAPATRA, JJ. For The Applicant : Mr. Gaurav Bhardwaj, Advocate For The Respondent : Ms. Varsha Benerjee, Advocate And Mr. Pankaj Khaten, Advocate ORDER S. K. Mohapatra, Member 1. This is an application filed under section 9 of the Insolvency and Bankruptcy Code, 2016 (for brevity 'the Code') read with rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity 'the Rules') with a prayer for initiat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication. 6. As the salary and other dues of the employees were not paid by the corporate debtor, a demand notice dated 12th December, 2017 in Form-3 under Section 8 (1) of the Code read with rule 5 of the Rules was issued to the corporate debtor for payment of salaries and other dues of the employees. It is submitted that the applicants / operational creditors have not received payment from the corporate debtor despite expiry of 10 days period stipulated in the demand notice. Consequently the workers have preferred the present application under Section 9 of the Code for initiation of Corporate Insolvency Resolution Process in respect of respondent corporate debtor, M/s Anil Special Steel Industries Limited. 7. Learned counsel for the respondent No. 1 corporate debtor appeared and filed the power of attorney/ Vakalatanama dated 1st February, 2018 along with the relevant board resolution of the company. During hearing on 31st January, 2018 learned counsel for the corporate debtor, on instruction, categorically submitted that the amount of default is admitted and therefore no reply from corporate debtor would be necessary. 8. It has been stated in the application that respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It has thus been made clear that option has been given to the workmen to prefer application in a joint capacity through their authorised representative. In the present case workmen have preferred the application in joint capacity through their duly authorised representative as per the requirement of the format prescribed under the Rules. Accordingly application under Section 9 by unpaid workmen in a joint capacity is clearly maintainable. 10. The expressions Operational Creditor and Operational debt have been defined in Section 5 (20) and 5 (21) of the Code, which are reproduced below. 5. In this part, unless the context otherwise requires, - (20) operational creditor means a person to whom an operational debt is owed and includes any person to whom such debt has been legally assigned or transferred; (21) operational debt means a claim in respect of the provision of goods or services including employment or a debt in respect of the repayment of dues arising under any law for the time being in force and payable to the Central Government, any State Government or any local authority; 11. From the definition of operational creditor and operational d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of workmen even after demand made by the workmen operational creditors. Once the application is complete and in the absence of any resistance from corporate debtor, the application is liable to be admitted. Therefore, on fulfilment of the requirements of Section 9 (5) (i) (a) to (d) of the Code, the present application is admitted. 15. A moratorium in terms of section 14 of the Code is being issued prohibiting the following: * Institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; * transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; * any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; * Recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate deb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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