Non-payment of bonus due to non-fulfillment of certain terms and conditions would be a pre-existing dispute: NCLAT
- News|Blog|Insolvency and Bankruptcy Code|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 6 September, 2021
Case Details: Victor Vanya Bandlamudi v. Mercados Energy Markets India (P.) Ltd. - [2021] 129 taxmann.com 292 (NCLAT- New Delhi)
Judiciary and Counsel Details
-
- A.I.S. Cheema, Judicial Member and V.P. Singh, Technical Member.
- Arun Saxena and Ms. Nalini Singh, Advs. for the Appellant.
- Sourav Roy, Kaushal Sharma and Prabudh Singh, Advs. for the Respondent.
Facts of the Case
The appellant joined the corporate debtor as a senior manager in January 2017. He requested the corporate debtor to accept his resignation and relieve him by 31-1-2019. He was relieved with effect from 31-3-2019. The appellant thereafter sent three reminders requesting the corporate debtor to discharge bonus for the financial year 2018-19 but no such payment was made.
The appellant applied for initiation of CIRP against the corporate debtor under section 9. In reply, the corporate debtor stated that there existed a pre-existing dispute prior to the issue of notice under section 8 regarding bonus as according to discussion between the parties the bonus was to be given to the appellant if certain conditions related to the extension of the notice period and execution of a retainership agreement were fulfilled by the appellant.
The corporate debtor claimed that since those conditions were not fulfilled, the bonus was not payable to the appellant. The Adjudicating Authority held that there was a pre-existing dispute between the parties and, therefore, the CIRP application was to be dismissed.
NCLAT Held
On appeal, the Appellate Tribunal held that the observations of the Adjudicating Authority in the impugned order were not out of place. The appellant may be able to pursue his remedies in any other forum if enforceable under law. However, as far as provisions of the IBC are concerned, which are more concerned with the resolution of the company, there is no error in the impugned order so as to interfere in the appeal.
Case Review
-
- Victor Vanya Bandlamudi v. Mercados Energy Markets India (P.) Ltd. [2021] 129 taxmann.com 291 (NCLT – New Delhi) (para 8) affirmed
List of Cases Referred to
-
- Mobilox Innovations (P.) Ltd. v. Kirusa Software (P.) Ltd. [2017] 85 taxmann.com 292/144 SCL 37 (SC) (para 3).
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied