ROHENDRA SINGH Vs. WEGILANT NET SOLUTIONS PVT LTD

JUDGEMENT

(1.) The present Application is filed under Section 9 read with rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules 2016, by the Operational Creditor Rohendra Singh seeking for initiation of Corporate Insolvency Resolution Process in respect of the Corporate Debtor Company which is reported to have committed default in making payment of its admitted debts to the tune of 9,40,000/- towards payment of salary and other allowances of the Applicant/Operational Creditor.

(2.) The Corporate Debtor Company in response to the applicant's demand notice sent a reply admitting the amount of debts due to it and explained such that salary amount could not be paid because of cash crunch, lack of sales in the company, as the company is facing difficulty in raising further funds/investment. Thus, it is evident that Corporate Debtor Company not only have admitted its outstanding dues but expressed its inability to make payment thereof in future.

(3.) The facts in brief raising to the present application as stated in the prescribed format of the application as well as in the statutory Demand notice issued to the respondent/Corporate Debtor Company, under the I & B Code, are stated as under.