Tribunal Initiates CIRP under I&B Code, Declares Moratorium

The Tribunal admitted the application under section 9 of the I&B Code, 2016, initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. A moratorium was declared, and an Interim Resolution Professional (IRP) was appointed. The Tribunal directed the Registry to update the status of the Corporate Debtor on the MCA-21 site of the Ministry of Corporate Affairs.

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Issues Involved:
1. Whether the application is barred by the law of limitation.
2. Whether the applicant was not in the employment of the Corporate Debtor.
3. Whether the applicant had obtained the domain name "tejacement.com" without the knowledge of the Directors of the respondent and misused it.
4. Whether there is no operational debt or default.
5. Whether admitting this petition would amount to exercising equitable jurisdiction by this Adjudicating Authority.

Issue-wise Detailed Analysis:

1. Whether the application is barred by the law of limitation:
The Tribunal held that the burden lies on the applicant to establish that the claim is within the period of limitation. The respondent raised the plea of limitation, but the applicant countered by presenting letters and email communications showing clear and categorical admission of outstanding dues by the respondent. The Tribunal found that the right to sue accrued on non-payment and the application filed on 29.03.2019 was within the three-year limitation period. Therefore, the claim was within the period of limitation.

2. Whether the applicant was not in the employment of the Corporate Debtor:
The applicant contended that he worked on a consultancy basis and was promised remuneration, including sweat equity shares. The respondent denied any employment relationship, alleging the documents were forged. The Tribunal examined various letters and email communications, comparing signatures and considering the Techno-Economic Feasibility Report, which acknowledged the applicant's involvement. The Tribunal concluded that the applicant was indeed employed by the respondent and the documents were genuine, establishing an employer-employee relationship.

3. Whether the applicant had obtained the domain name "tejacement.com" without the knowledge of the Directors of the respondent and misused it:
The respondent claimed the applicant created the domain name and email ID without authorization and misused them. However, the Tribunal found that several communications from third parties and government authorities addressed the applicant as 'Director,' indicating his recognized role. The Tribunal rejected the respondent's plea of forgery and misuse, finding the correspondence and letters to be genuine and made in the capacity of an employee.

4. Whether there is no operational debt or default:
The Tribunal referred to section 5(21) of the I&B Code, 2016, defining 'operational debt' and found that the applicant's claim fell within this definition. The Tribunal concluded that the applicant's employment and the outstanding dues constituted an operational debt, establishing the existence of debt and default.

5. Whether admitting this petition would amount to exercising equitable jurisdiction by this Adjudicating Authority:
The Tribunal emphasized that it examined the case based on the provisions of the I&B Code, 2016, and the definition of 'claim' under section 3(6). The applicant demonstrated a contract of employment and breach thereof, fitting the definition of 'claim.' The Tribunal clarified that it did not consider principles of equity and found the petitioner's claim valid under the I&B Code, 2016.

Conclusion:
The Tribunal admitted the application under section 9 of the I&B Code, 2016, initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. A moratorium was declared, and Shri P.M.V. Subbarao was appointed as the Interim Resolution Professional (IRP). The Tribunal directed the Registry to update the status of the Corporate Debtor on the MCA-21 site of the Ministry of Corporate Affairs.

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