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Dismissal of Section 9 petition - initiation of CIRP - Dues of ...


NCLAT Dismisses Insolvency Petition Due to Pre-Existing Dispute Over Employee Dues and Continuous Employment.

March 23, 2024

Case Laws     Insolvency and Bankruptcy     AT

Dismissal of Section 9 petition - initiation of CIRP - Dues of employees - The NCLAT examined the employment tenure of the appellant and found evidence supporting continuous employment with the corporate debtor until resignation. It rejected the respondent's argument regarding employment with another entity. - NCLAT found that the respondent had disputed the appellant's claims prior to the section 9 application, indicating a pre-existing dispute. Thus, the court deemed the application inadmissible based on the principles established in the Mobilox judgment.

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