Application u/s. 9 of IBC rejected as performance pay cannot be taken as operational debt: NCLAT Chennai

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 an...