2020 (6) TMI 739

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....pect of M/s. Chemizol Additives Private Limited (hereinafter referred to as 'Respondent/Corporate Debtor') on the ground that it has committed default for a total amount of Rs. 5,46,631/- (Rupees Five Lakhs Forty Six thousand Six Hundred and Thirty One only) as on November 2018. 2. Brief facts of the case, as mentioned in the Petition, which are relevant to the issue in question, are as follows: (1) M/s. Chemizol Additives Private limited (hereinafter referred to as 'Respondent/Corporate Debtor') was incorporated on 13.09.2007, under the Companies Act, 1956 with CIN: U01131KA1997PLC022393 having its registered office at Plot No. 19 E & F, Bidadi Industrial Area, 2nd Phase, Sector 1 Talakuppa Village, Bidadi, Ramanagar - 5....

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....ons and also did not come forward to pay the agreed salary till date. (4) Further, Operational Creditor has not been paid his rightful employment due, since from November 2018. Even though the Operational Creditor continued to serve the Corporate Debtor in good faith hoping that the crisis would be resolved and they would receive their rightful dues. The Operational Creditor repeatedly tried his best to express their grievance and loss due to non-payment of salary through various meetings, however without understanding his grievances, the Corporate Debtor started prolonging the payment of salary dues on one or other reasons and despite of repeated request, till date they have not come forward to make payment of the salary. (5) Further t....

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....Corporate Debtor. 3. Heard Mr. Mahesh M, learned Counsel for the Petitioner through Video Conference. We have carefully perused the pleadings of the party and extant provisions of the Code and the Rules made thereunder. 4. Mr. Mahesh. M, the Learned Counsel for the Petitioner, while reiterating various averments made in the company petition, as briefly stated supra, has further submitted that the Petitioner being an small employee living on the salary, has no other remedy except to approach this Adjudicating Authority hoping instant justice. The engagement of the Petitioner as an employee, and the salary due from the Respondent is not at all in dispute. The Petitioner tried his level best to recover the salary due before invoking the prov....

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....t is a settled position of law that the provisions of the Code cannot be invoked to settle the dispute(s) or to recover the alleged outstanding amount. The mere acceptance of the debt in question by the Respondent would not automatically entitle the Petitioner to invoke the provisions of the Code, unless the debt and default is undisputed and proved it to the satisfaction of the Adjudicating Authority. As per the copy of Annual Returns for the Financial year 2017-18, filed by the Petitioner in respect of the Respondent Company, its turnover and net worth are Rs. 103,322,162 and Rs. 1,325,365,853/respectively. Therefore, the Respondent Company prima facie appears to be solvent Company so as to resolve the issue of outstanding amount in quest....