Summary
The Supreme Court restored admission of an employee’s operational-debt insolvency application against the hotel company. The Managing Director’s acknowledgment of salary arrears was within three years before filing, and at least the arrears falling within three years before that acknowledgment were within limitation. The provident-fund communication did not establish settlement of salary arrears. The acknowledgment also defeated the asserted dispute on these facts; remand was refused.
Issues
- Whether limitation or an asserted dispute defeated admission of the employee’s operational-debt application.
Provisions considered
- Section 9, Insolvency and Bankruptcy Code, 2016Admission was restored because acknowledged salary arrears included a claim within limitation and the asserted dispute was not sustainable on this record. (¶ 3-10)
Held
- Less than three years elapsed between the last acknowledgment and filing. At least salary arrears for the three years preceding that acknowledgment were within limitation; the Court did not need to declare every historical salary instalment timely. (¶ 10)
- The provident-fund letter was unrelated to the salary arrears. The acknowledgment established liability on these facts and the asserted dispute did not defeat admission; a further remand was unnecessary. (¶ 10)
- The employee’s appeal was allowed and NCLT admission restored. Permission to file the three separately listed civil appeals was rejected. (¶ 11-12)
Result
Employee’s appeal allowed; NCLAT order set aside and NCLT admission restored. Permission to file the three companion appeals rejected.