Workmen/Employees/Operational Creditors may file an application u/s 9 of IBC to initiate CIRP in an individual capacity or as a joint capacity by the authorized person, however, for a valid application u/s 9 of the Code, threshold limit for each individual is required to be one crore – Mr. Atanu Kumar Chatterjee Vs. Rolta Defence Technology Systems Pvt. Ltd. – NCLT Mumbai Bench
October 12, 2023
In this case, the application u/s 9 of IBC has been filed by 29 Operational Creditors who are the former employees of the Corporate debtor. NCLT Mumbai Bench held that: (i) It is a settled law that workmen/employees (Operational Creditors) may file an application to initiate CIRP in an individual capacity or as a joint capacity by the authorized person. Therefore, the application to initiate CIRP under Section 9 of the Code can be initiated by the Operational Creditors individually or jointly. (ii) There is no ambiguity about application u/s 7 of IBC being filed individually or jointly with other Financial Creditors and threshold limit would apply accordingly. However, the provision of Section 9 is differently worded. (iii) Phrase in Section 7 is “itself or jointly”, whereas the word jointly or any synonym of it is not finding place in Section 9 of the Code. (iv) For a valid Petitioner u/s 9 of the Code, threshold limit for each individual is required to be one crore. (v) The current Company Petition is not maintainable as the claim of each Operational Creditor is below the threshold limit of One Crore.