CAPT Vs Spicejet Private Limited (NCLT Delhi)
The National Company Law Tribunal (NCLT), Delhi, dismissed a Section 9 application filed by an employee seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against SpiceJet Limited for alleged unpaid employment dues of ₹1,13,56,444 along with interest of ₹56,78,222, aggregating to ₹1,70,34,666.
The Operational Creditor submitted that he was appointed as a Trainee Captain in April 2019 and claimed that substantial salary dues for the period from April 2020 to August 2022 remained unpaid despite repeated requests and a demand notice issued under the Insolvency and Bankruptcy Code (IBC).
The Corporate Debtor challenged the maintainability of the application. It contended that a substantial portion of the claim related to the period from April 2020 to March 2021, which fell within the period protected under Section 10A of the IBC. Excluding that amount reduced the alleged default below the statutory threshold of ₹1 crore. It also argued that there was no agreement for payment of interest, that the employment contract had been replaced by revised terms accepted by the employee in 2020, and that the claim was subject to a pre-existing dispute regarding salary calculations and full and final settlement.
The Tribunal first held that employment dues fall within the definition of “operational debt” under Section 5(21) of the IBC and can form the basis of a petition under Section 9.
