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2017 (10) TMI 463 - AT - Companies LawInsolvency procedure - application under Section 9 of the I&B Code is maintainable at the instance of Workmen Association? - Held that:- We hold that the application under Section 9 at the instance of Appellant-JK Jute Mill Mazdoor Morcha - is not maintainable. The Adjudicating Authority has rightly rejected the claim though for some other reason. It does not mean that an application under Section 9 of I&B Code is not maintainable at the instance of an individual employee/workman who has rendered services to the 'corporate debtor' and if there is debt and default: such individual workman/employee can prefer an application under Section 9 giving details of debt and date of default but it should not be less than one lakh rupees in view of Section 4 of the I&B Code. In such cases if corporate insolvency resolution process if started against the corporate debtor, it is always open to the other creditors, including workmen/employees, their legal heirs to file claim before the Insolvency Resolution Professional once notice is published in the newspaper under Section 15 of the I&B Code and/or prior to completion of insolvency resolution process. This observation we are making so that in such case the 'corporate debtor' cannot take plea that earlier the application moved by workers' association/Trade Union in respect of such workmen/employee/legal heirs of deceased employees under Section 9 and the appeal under Section 61 have been rejected. In absence of any merit the appeal preferred at the instance of JK Jute Mill Mazdoor Morcha is dismissed with liberty to individual workman/employee to raise such claim, if there is a debt and default.
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