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2022 (8) TMI 1112 - AT - Insolvency and BankruptcyRejection of application for initiation of CIRP, filed u/s 9 of IBC - Operational Creditors - dispute prior to delivery of demand notice - HELD THAT:- From the record of the EGM dated 20.5.2019, it is noted that the Appellant continued to function as a WTD and was entitled to a remuneration as stipulated in the clauses 48 and 49 of the Articles of Association, and the figure of remuneration of the Appellant as WTD can be seen from the Form MR-1 filed by the corporate debtor wherein a remuneration of Rs.86,49,600 p.a. is shown as Appellant’s remuneration (attached at pp.75-77 of appeal paperbook, vol. I). Further an increment was given to the Appellant as CFO and WTD vide letter dated 2.7.2018. The Adjudicating Authority has erroneously inferred the existence of a dispute merely because a Writ Petition bearing WP (C) 4407/2019 was filed by the appellant, even though there is no such reference or mention is made in the order dismissing the writ petition and no inference of dispute can be drawn from what is stated in the said order - the Appellant was appointed as a WTD of the corporate debtor on 29.9.2015 while he was already working as CFO, and continued as WTD till 20.5.2019. Since he was paid his total emoluments and termination benefits till 31.3.2019 for his work as CFO, he is entitled to receive payment for the period 1.4.2019 till 20.5.2019 for his work as WTD, which is an operational debt in default and payable by the corporate debtor. The Adjudicating Authority has erroneously dismissed Appellant’s application under section 9 - The case is sent to the Adjudicating Authority for passing necessary order after the admission of section 9 application - Appeal disposed off.
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