2026 (1) TMI 268

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.... by the adjudicating authority. 3. Learned counsel for the appellant submits that adjudicating authority committed error in observing that non-payment of wages and benefits cannot be termed as operational debt, whereas, it is fully covered within the definition of operational debt. Counsel for the appellant further submits that dispute which was raised by the employer were moonshine dispute and they were only raised for the purpose of denying the salary to the appellant and fixed salary. 4. We have considered the submissions of the counsel for the appellant and perused the records. 5. The appellant himself has filed legal notice dated 21.02.2024 which the appellant has given to the employer narrating the facts and praying for payme....

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....nt claimed in your demand notice is grossly inflated and appears to be based on incorrect or incomplete accounting records. We strongly urge you to conduct a thorough review of your financial records, as they do not accurately reflect the transactions between you and the Company. As per Point 1.10(1) of your Demand Notice, you have calculated an amount of INR 1,53,89,519/- from 08 October 2021 to 30 June 2024. However, you have admitted and confirmed that INR 82,88,400/- has already been received in your bank account. Additionally, you have acknowledged the receipt of INR 30,93,000/-. Therefore, by your own calculations, the amount due is INR 40,08,119/-, which does not meet the threshold required to invoke a Section 8 Demand Notic....

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....spite this, you have erroneously claimed salary from October 08, 2021. until June 30, 2024. even though your services were suspended as of November 23. 2023 due to serious misappropriation of funds on your part. This necessitated an investigation, following which a Response cum Counter Allegation Legal Notice dated March 04, 2024, was served upon you, and a formal police complaint was filed at the DCP Office in Noida on January 11, 2024. You were summoned by the police, and the investigation is ongoing. Therefore. your claim for salary until June 30, 2024, is entirely without merit. It is important to note that all due salaries up to September 2023 have been fully paid. (A copy of the bank statements reflecting payment of salaries ....

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....ry 11, 2024. You even sent your response to the police station for investigation in connection with this matter. Therefore, you are fully aware that it is not us who owe you any money: rather, it is you who are indebted to us." 6. The submission of the counsel for the appellant as noted above that payment of wages amounts to operational debt have substance, operational debt include the any debt relating to employment, however, when we look into the facts of the present case and relevant materials brought on the record there is a pre-existing dispute between the employer and the employee and the said dispute is going on between both employer and employee much prior to issue of demand notice and when notice of dispute was issued after dema....