TaxTMI 
TaxTMI 
2018 (5) TMI 77
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....'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 initiation of Corporate Insolvency Resolution Process in respect of respondent company M/s Anil Special Steel Industries Limited, claimed to be the corporate debtor. 2. The applicant is one of 207 workmen/employees of respondent corporate debtor, M/s Anil Special Steel Industries Limited. The applicant has filed affidavit dated 3 rd January, 2016 affirming that he is the general secretary of Rashtriya Anil Steel Mazdoor Sangh (Regd.) and is authorised to sign and file present application. 3. The Respondent M/s Anil Special Steel Industries Limited, against whom in....
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....t employees have been annexed with the application. It is stated in the application that the total liability of respondent corporate debtor towards the salary and other dues of the employees stands at Rs. 3,83,71,283/-. The break-up of the total claimed dues have also been furnished at Part IV of Form 5, enclosed with the application. 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 desp....
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....f the Code. Needless to say that once the present application is admitted and order of moratorium is passed, all such proceedings cannot proceed till resolution process is complete. 9. During hearing on 5th February, 2018 a doubt was raised on the maintainability of the petition in the light of order passed by Hon'ble NCLAT in the case of JK Jute Mill Mazdoor Morcha v. Jugilal Kamlapat Jute Mill Co. Ltd. passed in Company Appeal No. (AT) (Insolvency) 82 of 2017. In this regard learned counsel for applicant submitted that an appeal against the said order has been preferred before Hon'ble Supreme Court of India in Civil Appeal No. 20978/ 2017 and the question as to whether Trade Unions can invoke the jurisdiction of NCLT under the ....
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....ode, 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 debt", it can be seen that the following persons can claim to be an "operational Creditor" (i) The pe....
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....e Section 4 of the Act) (ii) Whether the documentary evidence furnished with the application shows that the aforesaid debt is due and payable and has not yet been paid? and (iii) Whether there is existence of a dispute between the parties or the record of the pendency of a suit or arbitration proceeding filed before the receipt of the demand notice of the unpaid operational debt in relation to such dispute?" 14. In the present application all the aforesaid requirements have been satisfied. It is seen that the present 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 res....
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....eriod. (b) The provisions of sub-section (1) of section 14 of the Code shall not apply to such transactions as may be notified by the Central Government in consultation with any financial sector regulator. 17. The Insolvency and Bankruptcy Board of India vide its letter dated 01.01.2018 has recommended a panel of Insolvency Professionals for appointment as Insolvency Resolution Professional in compliance with Section 16 (3) (a) of the Code in order to cut delay. The list of recommended Insolvency Professionals provides instant solution to the Adjudicating Authority to pick up the name and make appointment. It helps in meeting the timeline given in the Code and the unnecessary time wasted firstly in asking the Insolvency and Bank....