Rajeswara Rao Vittanala, Member - (1.) The present Company Petition (referred to as 'Company petition' hereunder) bearing No. CP(IB)/9/9/HDB/2017 is filed by Sh. K.K.V. Naga Prasad, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by inter alia seeking directions to put Lanco Infratech Limited (Referred to as "Company" hereunder) under Corporate Insolvency Resolution process, in accordance with the provisions of IBC, 2016; appoint Interim Resolution professional, award cost etc.
(2.) The brief facts of the case, as set out in Company petition, are as follows: a) M/s. Lanco Infratech Limited (Which is referred to as Company) is a Company incorporated under the provisions of Companies Act, 1956 with an Authorised Capital of Rs. 1,20,00,00,00,000/- divided into 1,20,00,00,00,000 shares of Rs. 1/- each and paid up capital of Rs. 2,74,93,26,655/- It is a listed Company on the Bombay Stock Exchange with 30% public shareholding. b) The Petitioner has worked for various group companies of the Company from January, 2003 till January, 2014 at various positions/designations, and the last being "Chief Executive Officer" of the Company posted at corporate office in Gurgaon. He had resigned from the Company, vide his letter dated 23.12.2013, after properly serving notice to the Company. So he was relieved from service in the month of January, 2014. He claimed that he was entitled to emoluments consists of pending salary, HRA, local allowance, attire allowance, special allowance, child education allowance etc. and also entitled for Leave Encashment, gratuity etc., at the time of relieving his duties. c) Since the Company did not pay dues due to him, the petitioner issued demand notice on 2nd January, 2017, as per Form-3 under section 8(1) of IBC, 2016 R/w Rule 5 of Insolvency and Bankruptcy (application to the Abjudicating Authority) Rules, 2016 demanding Rs. 1,22,22,969.34 along with interest of 24% p.a. from the Company by giving the Company 10 days' notice to repay the same. The details of his employment and his entitlements are mentioned below:- d) The Petitioner has sent a demand notice/invoice dated 02.01.2017 under Rule 5 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to the Chairman of Company by requesting it to repay the amount due within 10 days from the receipt of this letter, failing which he informed that he would initiate a Corporate Insolvency Resolution process in respect of the Company. e) In pursuance to the above notice, M/s. Chandhiok & Associates, Advocates on behalf of Company sent a reply dated 11.01.2017 by email to Mr. Deva Vrat Anand, Advocate for the Petitioner with a copy to the Petitioner by inter-alia stating that the contents in the Demand Notice was nothing but a cohesive means to harass and agonise the Company, and pressurize it to give into his unjust demands by threatening insolvency of Company. It is also stated that the demand notice was issued under Section 7 of the IBC, which shall be given by a financial creditor, whereas the petitioner is not a financial creditor and thus Demand Notice was also incorrect and erroneous and not tenable. And this response was given as a notice under Section 8(2) of IBC, 2016.
(3.) The petitioner was not paid his dues even though the said Demand Notice was given to the Company. In support of his contention, the Petitioner has produced a Certificate from Axis Bank, Begumpet Branch, and Hyderabad.;