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Issue of closure of factory to be raised under Industrial Disputes Act: NCLAT Delhi

Case Law Details

TaxGuru Citation
2024 taxguru.in 5954
Case Name
Rakesh J Shah & Ors. Vs Sanjay Kumar Agarwal & Ors. (NCLAT Delhi)
Date of Judgement/Order
Only available for paid members
Courts
NCLAT
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Rakesh J Shah & Ors. Vs Sanjay Kumar Agarwal & Ors. (NCLAT Delhi)

NCLAT Delhi held that issue of closure of the factory to be raised against Industrial Court or Labour Court under the Industrial Disputes Act, 1947 and not against adjudicating authority i.e. National Company Law Tribunal. Thus, appeal dismissed.

Facts- The CIRP of the Corporate Debtor commenced vide order dated 01.01.2018 passed by the Adjudicating Authority on an application filed u/s. 7 by the Allahabad Bank against the Corporate Debtor- ‘Biotor Industries Ltd.’.

On an application filed by the Resolution Professional, an order dated 31.12.2018 was passed by the Adjudicating Authority directing for liquidation of the corporate debtor. Liquidator made publication inviting claims from the stakeholders. The Appellants in their capacity as Authorised Representative of 271 workmen submitted their claims in Form F vide e-mail dated 07.02.2019. Liquidator vide e-mail dated 25.02.2019 asked the Appellants to submit the proof of employment in the company in the period of two years preceding the liquidation commencement date in order to admit their claims. The liquidator vide e-mail dated 02.03.2019 communicated the rejection of the claims. Aggrieved by the rejection of the claims by the liquidator, appellant preferred an appeal before the Adjudicating Authority. Liquidator filed an Affidavit-in-reply dated 17.06.2019. Adjudicating Authority after hearing the Appellants as well as the liquidator has passed the impugned order rejecting the claims.

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