Ch Mohd Sharief Tariq, Member - (1.) Under Adjudication is CP/607/(IB) /CB/2017 that has been filed by Mr. V. Manoharan 85 31 Ors. (hereinafter referred to as the 'Operational Creditors') against the M/s. Associated Cylinders and Accessories Private Limited (hereinafter referred to as the 'Corporate Debtor') under Section 9 of the Insolvency and Bankruptcy Code 2016 (for short I&B Code) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The prayer made is to admit the Application and to initiate the Corporate Insolvency Resolution Process under the I&B Code, 2016 by appointing an Interim Resolution Professional (IRP) . Heard Ld. Counsel for the Operational Creditor and Ld. Sr. Counsel for the Corporate Debtor and perused the record.
(2.) The brief facts of the case are that the Operational Creditors had worked with the management of the Corporate Debtor for the past 30 years and the management has failed to pay the wages for 6 months from August, 2014, amounting to Rs.23,77,978/-. Thereafter, the Operational Creditors filed the claim under Section 3 of the Payment of Wages Act, 1936 before the Authority Appointed under the Payment of Wages Act, 1936, Puducherry, claiming Rs.23,77,978/-as wages and Rs.7,60,000/- @ Rs.20,000/- for each Petitioner as compensation. The Corporate Debtor filed reply to the claim Petition stating therein that the Company's orders from customers have come down substantially due to existing sources drying up and difficulty in getting new customers and orders due to general economic situation. In October, 2014, workers refused to return their customers' materials and therefore, the customer has not released any orders after that incident. Further, during the month of November, 2014, the workers went on unauthorised strike which caused a lot of hardships for their customers and they are now refusing their requests for further orders. After enquiry, on 06.10.2016, the Authority Appointed under the Payment of Wages Act, 1936, directed the opposite party i.e. Corporate Debtor to pay an amount of Rs.23,77,978/- to the Petitioners i.e. the Operational Creditor within 30 days from the date of that direction.
(3.) Even after the said direction, the Corporate Debtor has not paid the amount of wages due to the Operational Creditors. Thereafter, the Operation Creditors sent the Demand Notice under Rule 5 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 to the Corporate Debtor on 17.08.2017.;