N SUBRAMANIAN Vs. ARUNA HOTELS LIMITED

JUDGEMENT

(1.) Under adjudication is CP/597/(IB) /CB/2017 that has been filed by Mr. N.Subramanian an Ex-employee of the Corporate Debtor viz M/s. Aruna Hotels Limited.

(2.) The brief facts stated by the Petitioner are that he has claimed an arrears of salary dues since the year 1999 for rendering services to the Corporate Debtor for about 37 years as stated in the letter dated 31.03.2014, placed at page 97 of the typed set field with the Petition. It has been stated that whenever the Petitioner/ Operational Creditor demanded arrears of salary and wanted to be relieved, the Managing Director persuaded him to continue and assured that all his arrears of salary would be settled and for the reasons that the Petitioner remained associated with the Company for a very long time, the same was accommodated by the Petitioner and he continued to work on a reduced consolidated salary of Rs.25,000/-. The Petitioner has placed on file a letter dated 30.09.2006 that assured the Petitioner to clear his dues. The letter dated 30.09.2006 reflects that the Petitioner/Operational Creditor was entitled to the arrear of the salary as per the order dated 01.02.1998 fixed on 01.01.2000 as follows:-

(3.) When the Petitioner has submitted his resignation on 22.01.2013 his consolidated salary was increased to Rs.35,000/- with effect from 01.02.2013, as an incentive for withdrawing his resignation. However, his resignation was accepted and he was relieved from the services on 30.06.2013. The copy of the resignation letter of the petitioner dated 22.01.2013 is placed at page 95 of the typed set filed with the Petition and the letter dated 30.06.2013 by which the resignation was accepted is placed at page 96 of the typed set filed with the Petition wherein the management of the Corporate Debtor expressed its deep appreciation of the services rendered by the Petitioner/Operational Creditor during his long association with the Company spanning over a period of 29 years as has been stated in the letter dated 30.06.2013 placed at page 96 of the typed set filed with the Petition. These documents have not been rebutted through any documentary evidence by the Respondent/Corporate Debtor. It is also on record that even after resignation the Petitioner/Operational Creditor was retained on a consolidated salary of Rs.35,000/- per month and it was assured that his arrears of salary would be settled over year end i.e., 31.03.2014. But, the same was not done and a letter of confirmation was issued on 31.03.2014 assuring to the Applicant/Operational Creditor that the accounts will be settled very shortly in accordance with the terms of the letter of the management dated 30.09.2006. Then, on 30.09.2014 an assurance was given that the arrear of salary will be settled in a period of one month reckoning from 30.09.2014 failing which it was promised that interest at the rate of 9% will be paid for the delayed payments. The statement of the arrears of salary annexed by the Respondent/Corporate Debtor with the letter dated 30.09.2014 reflects very clearly the outstanding balance of the arrears of salary as claimed by the Petitioner/Operational Creditor. The letters mentioned above are placed at pages 97 and 98 of the typed set filed with the Petition. The Petitioner/Operational Creditor has supported his claim with Director's Report attached to the Annual Report for the Financial Year 2013-2014 and 2014-2015. The Report is filed with the Written Arguments and marked as Annexure -1.