The New Delhi bench of the National Company Law Tribunal has started corporate insolvency resolution proceedings (CIRP) against Applied Electro Magnetic for not paying salary to an employee for a long time, the Times of India reported.
This is possibly the first ever instance of NCLT giving such a ruling under the Insolvency and Bankruptcy Code (IBC), the report said.
Nitin Gupta, a manager at Applied Electro Magnetic, filed a petition against the company under the provisions of IBC as an operational creditor. His petition said that the salary due was to the tune of Rs 46.77 lakh, piling up since 2008 because the company kept making late and irregular payments.
The company disputed Guptas claim, but admitted to overdue …
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