After admission of application for initiation of CIRP against corporate debtor, Association of workman had no role to play, workman could file their claim individually- NCLAT in case of Flacon Tyres Ltd. Vs. Belthangady Taluk Rubber GrowersMarketing & Processing Co-op. Society Ltd. & Anr.

I. Case Reference

Case Citation : (2017) 68 NCLAT
Case Name : Flacon Tyres Ltd Vs. Belthangady Taluk Rubber Growers Marketing & Processing Co-op. Society Ltd. & Anr.
Appeal No. : Company Appeal (AT) (Insolvency) No. 206 of 2017
Judgment Date : 09-Oct-17
Court/Bench : NCLAT New Delhi
Act : Insolvency & Bankruptcy Code 2016
Present for Appellant(s) : Shri Ashok K. Jain, Advocate
Chairperson : Mr. Justice S.J. Mukhopadhaya
Member (Judicial) : Mr. Justice A.I.S. Cheema
Member (Technical) : Mr. Balvinder Singh

II. Full text of the judgement


09.10.2017 This appeal has been preferred by the appellant against the order dated 30th August, 2017 passed by the Adjudicating Authority (National Company Law Tribunal), Bengaluru Bench in Case No. I.A. No. 102/17 in CP (IB) No. 01/BB/17. The main plea taken is that an association of workmen have been impleaded in the case under Section 9 of the Insolvency and Bankruptcy Code, 2016 (for short ‘I&B Code’), which is not permissible.

Having regard to the fact that after the impugned order being passed, the Adjudicating Authority has already admitted the application under Section 9, as informed by the learned counsel for the appellant, we are not inclined to interfere with the impugned order. However, we are of the view that after admission of the application for initiation of Corporate Insolvency Resolution, against the appellant, the association of workmen have no role to play except their members, individually may file claim, the Insolvency Resolution Professional, who is required to proceed in accordance with the provisions of I & B Code.

The appeal stands disposed of with the aforesaid observations. However, this order will not come in the way of the aggrieved person to challenge the order of admission of the application under Section 9 of the I & B Code. No costs.

[Justice S.J. Mukhopadhaya]

[Justice A.I.S. Cheema ]
Member (Judicial)

[Balvinder Singh ]
Member (Technical)



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