It is just not banks which are wielding the provisions of the Bankruptcy Code to recover dues.Even employees have started approaching the National Company Law Tribunal (NCLT) as was seen in a recent bankruptcy application filed by employees of Aruna Hotels in Chennai against their former employer.
Although over 125 cases have been referred before NCLT by either financial creditors or operational creditors, this is the first instance that an employee has approached the bankruptcy court. If these employees are able to recover their dues, it will set a precedent for thousands of other employees who do not have the wherewithal to take on the management to recover their dues.
The Chennai bench of NCLT admitted the application filed by thr…
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