The Delhi bench of the National Company Law Tribunal admitted an insolvency petition against a company for its failure to pay an employees dues on time in one of the first such cases under the new law.
Nitin Gupta, a manager of the company, filed a plea under the Insolvency and Bankruptcy Code as an operational creditor against Applied Electro-Magnetic Pvt. Ltd., a maker of handheld computing devices. Unpaid salary amounted to Rs 46 lakh due to delayed and irregular payments by the company, he said in his petition.
Operational creditors, including employees and vendors, is one of the two categories under the IBC permitted to initiate insolvency proceedings against a corporate debtor. The other one being financial creditors such as ba…
Read the full article at: https://www.bloombergquint.com/business/2017/11/06/insolvency-action-against-company-for-not-paying-employee-on-time