M Ramakanth Vs Nagarjuna Fertiliser and Chemicals Limited (NCLAT Chennai)
NCLAT Chennai held that claim raised by operational creditor towards performance pay cannot be taken as operational debt hence application proceedings under section 9 of the Insolvency Bankruptcy Code (IBC) for drawing CIRP proceedings not tenable.
Facts- The Appellant was appointed, as an Assistant Company Secretary, as back as on 16.01.1986, in a group company, Nagarjuna Hire Purchase Ltd. He was later on transferred to the holding company i.e., M/s. Nagarjuna Investment Trust Limited, as Assistant Company Secretary and later was appointed as its Company Secretary, and he was transferred to yet another unit of the group, that is, M/s. Nagarjuna Fertilizers and Chemicals Limited, which is the alleged Corporate Debtor, where he continues to work till he superannuated on 30.04.2018.
The case of the Operational Creditor, the Appellant, herein is that by an office memorandum dated 08.09.1994, and consequent to the order of transfer, the Operational Creditor was appointed as the Assistant Company Secretary of the Corporate Debtor vide appointment order dated 12.09.1994. The Appellant contends that, he would be entitled for the payment of performance pay @ 15% of the CTC in terms of the letter dated 04.08.2017 of the Corporate Debtor and hence, his performance pay ought to have been determined and paid as per the policy of the corporate debtor.
