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2020 (6) TMI 282
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....303, South A Block, My Home Glory Apartments, Masab Tank, Hyderabad. The Corporate Debtor is a Company having its Registered Office at Plot No.5, JVP Soft Building, Software Units Layout, Madhapur, Hyderabad. 3. That being employed in 'EiQ Networks, Inc.' on 01.04.2001 the Applicant was subsequently transferred to various group companies and was further appointed as Manager - CRM' on 17.03.2005 in the Respondent/ CD company. 4. Present application is filed under Section 9 of the I&B Code, 2016 by the applicant herein in respect of claim of Rs. 1,33,79,896/- as operational debt. The details of such claim, transactions on account of which the debt fell due, and the date from which such debt fell due are tabulated hereunder: Gratuity 37,24,722 Compensation 81,55,174 Additional Compensation 10,00,000 Legal and other costs 5,00,000 Total 1,33,79,896 5. The Operational Creditor has claimed that his services were wrongfully terminated by the directions of the holding company of the Respondents, and he was not paid the terminal benefits as per terms of employment. As against the claim of Rs. 1,33,79,896/- as detailed above, a total payment....
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....19 TO SEPTEMBER 4, 2019 Business Update Email 10-06-2019 Office Entry Blocked/ Biometric Access Disabled 12-06-2019 Reply to Business Update (email dated: June 10, 2019) with attachment 12-06-2019 Medical Records 09-06-2019 To 22-08-2019 Communication to Damodar Muddukrishna- Privileged and Confidential (multiple emails were exchanged) 14-06-2019 To 30-07-2019 Email Attachment - Termination Letter 13-06-2019 Email Attachment Intellectual 1Property Certification 10-06-2019 Email Attachment - Copy of elQnetworks (India) Research and Development Private Limited Offer Letter 15-12-2008 Emails Attachment Copy of elQnetworks Limited Offer Letter 01-04-2001 Stock Termination Paperwork 27-06-2019 Email Attachment - Damodar Muddukrishna Stock Termination Letter and Notice 25-06-2019 Email Communication - Form 3, Form 4 & Invoice 31-08-2019 Email Attachment - Form 3 31-08-2019 Email Attachment - Form 4 31-08-2019 Email Attachment - Invoice 31-08-2019 Demand Notice/ Invoice of Demanding Payment Under The Insolvency and Bankruptcy Code, 2016 04-09-2019 Email Attachment -Form 3 04-09-....
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....any (including but not limited to a laptop (Dell Latitude E5550), power adapter, earphones/ headset and the confidential data contained in the laptop) (Assets of the Company). c) It is pertinent to highlight that the Termination Letter also specified emoluments which the Applicant was entitled to, upon the termination of his services. These amounts were calculated as per the terms of employment of the Applicant with EiQnetworks India and the Company, as well as the relevant applicable laws. The Applicant was entitled to the following amounts- i) One month's notice pay - INR 3,39,799/- ii) Salary till 13 June 2019 - INR 1,41,147/- iii) Gratuity (from 15 December 2008 to 13 June 2019) - INR 16,44,188/- iv) Leave encashment - INR 1,25,464/- Total Amount - INR 22,50,599/- d) Pursuant to the issuance of the Termination Letter, the above mentioned total amount (INR 22,50,599/-) was duly paid to the Applicant in compliance with the terms of employment as well as applicable laws. e) However, immediately after the issuance of the Termination Letter, the Applicant started raising completely false, frivolous and arbitrary claims (over and above th....
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.... is to be computed from 1 April 2001 as his employment had been continued from the previous company where he was employed with EiQnetworks India. It was also alleged by the Applicant that he is entitled to certain employee stock options (ESOPs). The Company responded to the aforesaid email on 25 June 2019 thereby categorically denying that the Applicant's employment data had been fudged or falsified. It was further clarified by the Company that EiQ networks India was incorporated in December 2008 and therefore, there was no question of payment of gratuity to him from 2001. In relation to ESOPs, the Applicant was informed that as per Company's policy, a stock termination letter would be issued to the Applicant and he may exercise his rights in terms thereof. It is pertinent to mention herein that the Applicant was duly issued a stock termination letter dated 25 June 2019, however, the Applicant has chosen not to exercise his rights in accordance with the terms thereof. iii) The Applicant responded to the above mentioned email dated 25 June 2019 on 26 June 2019 thereby again stating that his employment commenced from 1 April 2001 and also attached an appointment lett....
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....019 to the Applicant thereby denying the frivolous allegations raised in the notice dated 12 August 2019 and requesting him not to take any action in this regard till a detailed response is issued by the Company. The Applicant (through its counsel) responded vide letter dated 30 August 2019 stating that time is the essence of the settlement and therefore, he will not exercise restraint in availing legal remedies against the Company. Thereafter, several emails were exchanged between the counsels of the parties on their behalf, however, the Applicant malafidely refused to return the assets of the Company despite having been terminated from employment. The Company thereafter, issued a detailed response dated 12 September 2019 to the notice dated 12 August 2019. In the aforesaid letter, inter alia, the Company not only disputed each and every arbitrary and illegal claim being raised by the Applicant therein, but the Company yet again called upon the Applicant to return the Assets of the Company. However, till date the Applicant continues to be in illegal possession of the aforesaid Assets and has refused to return the same to the Company. vi) In the meanwhile, even before the ....
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....ade by the Applicant in the Application and the same has only been filed by the Applicant to arm twist the Company into making completely arbitrary and illegal payments to the Applicant. Therefore, the Application filed by the Applicant is not maintainable and the same is liable to be rejected with costs. i) Furthermore, there is no provision under the Code to issue two demand notices for the same amount and hence, the said Demand Notices are bad in law and not maintainable under the provisions of Section 8 and Section 9 of the Code. j) That the claims of the Applicant regarding gratuity and compensation are against the objectives of the Code, as he has attempted to use the Code as a tool for recovery, rather than resolution of the Corporate Debtor and the application is ought to be rejected on this ground. 10. Heard, both the sides and perused the record as well as written submissions, 11. This is an Application filed U/s.9 of the Code. According to the provisions of Sec.8 and 9, for initiation of resolution process U/s.9, the Applicant must send a demand notice, to which the Corporate Debtor should reply within 10 days brining to the attention of the Appli....
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....lient (as far back as June 2019) that your Client's employment with EiQnetworks India started on 15 December 2008 and not prior to that as alleged by your Client. In fact, EiQnetworks India was incorporated in December 2008. Thereafter, from 1 April 2018 to 13 June 2019, your Client was employed with Cygilant. Further, the appointment letter dated 15 December 2008 issued to your Client on behalf of EiQnetworks India was afresh appointment letter and your Client's employment with EiQnetworks India had no continuity in service from any prior company including but not limited to EiQnetworks Limited. It is reiterated here that prior to December 2008, your Client was employed with another company, i.e. EiQnetworks Limited which is not a subsidiary of and has no affiliation with Cygilant and/or Cygilant Inc. and/or any of its group companies. Thus, Cygilant cannot be held liable for any dues prior to your Client's employment with EiQnetworks India, i.e. any dues prior to 15 December 2008. It is specifically denied that your Client has not yet resigned nor accepted the Termination Letter by Cygilant. It is reiterated here that service of your Client were terminated by Cygilant....