suresh kumar 09 August 2018

Obtaining pending salary

Dear Seniors,

Our company is a manufacturing unit and due to financial crises one year back company has been registered under NCLT (National Company Law Tribunal). Few admin dept. employees were not been given salary for the month of Jan'18 before NCLT period and now when these employees approached management their said to contact nclt authorities for claiming of salary. All these employees have contacted nclt authorities and upon their instructions their have submitted a copy of appointment letter, one year bank statement and pay slips.

Its been almost two months of submission of required documents to authorities but till now not received any response from them. In this connection please suggest whom we have to consult for getting our salary back.

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2 Replies

kirti kabra 09 August 2018

An operational debt is defined under Section 5(21) of the Insolvency and Bankruptcy code. It states –

Operational debt includes a claim for the repayment of dues arising under any law for the time being in force payable to Central Government, any State Government or any local authority in respect of:

Goods
Services
Employment
Debt

Application for initiation of corporate insolvency process

If the operational creditor does not receive either his payment or notice of pendency of any suit even after ten days of serving demand notice to the corporate debtor, then he can file an application to the NCLT for initiating a corporate insolvency resolution process. The creditor has to furnish certain documents along with the application to initiate the process:

A copy of invoice or demand notice given to the corporate debtor by the operational creditor.
An affidavit stating that there is no notice given by the debtors in respect of any dispute related to unpaid amount.
A copy of the certificate from the financial institutions of the creditor stating that no amount has been paid by the debtor to the creditor as unpaid operational debt.

Within 14 days of receipt of the application by the operational creditor, NCLT will pass an order either for the acceptance or rejection of that application along with the reasons of its order.

with the refrence to the above laws under the Insolvency and Bankruptcy Code, if the NCLT doesnt accept or deny the application you can file an appeal for the same.

Jamal Sait 09 August 2018

Before NCLT it is essential that, The minimum amount of salary due to the person must be one lakh rupees.The maximum value of the salary must not be more than one crore rupees. If u dont meet the following criteria you can file a suit for recovery of money before city civil court.