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2019 Supreme(SC) 508

ROHINTON FALI NARIMAN, VINEET SARAN
JK JUTE MILL MAZDOOR MORCHA – Appellant
Versus
JUGGILAL KAMLAPAT JUTE MILLS COMPANY LTD. THROUGH ITS DIRECTOR – Respondent


Advocates Appeared:
For Parties: Mr. Gopal Jain, Sr. Adv. Mr. Pankaj Jain, Adv. Mr. Bijoy Kumar Jain, AOR Mr. Gopal Shankar Narayan, Sr. Adv. Mr. Ankit Kohli, Adv. Ms. Gayatri Verma, Adv. Mr. R. C. Kohli, AOR Mr. Ashok Kumar Jain, Adv. Mr. Arjun Aggarwal, Adv. Mr. Shashank Shekhar Singh, AOR Mr. A. Venayagam Balan, AOR Mr. Amit Singh Chadha, Sr. Adv. Mr. Atanu Mukherjee, Adv. Ms. Srishti Govil, Adv. Mr. Pradeep Aggarwal, Adv. Mr. Gaurav Kejriwal, AOR Mr. Navneeti Prasad Singh, Sr. Adv. Mr. Anip Sachthey, Sr. Adv. Mr. Nar Hari Singh, AOR Ms. Anjali Chauhan, Adv. Ms. Ria Sachthey, Adv. Ms. Rekha Pandey, Adv. Mr. A.K. Sharma, AOR Mr. Hitendra Nath Rath, AOR Ms. Ruchi Kohli, AOR Mr. Mushtaq Ahmad, AOR

JUDGMENT

R.F. NARIMAN, J.

1. The present appeal raises an important question as to whether a trade union could be said to be an operational creditor for the purpose of the Insolvency and Bankruptcy Code, 2016 [“Code”]. The facts of the present case reveal a long-drawn saga of a jute mill being closed and reopened several times until finally, it has been closed for good on 07.03.2014. Proceedings were pending under the Sick Industrial Companies (Special Provisions) Act, 1985. On 14.03.2017, the appellant issued a demand notice on behalf of roughly 3000 workers under Section 8 of the Code for outstanding dues of workers. This was replied to by respondent No.1 on 31.03.2017. The National Company Law Tribunal [“NCLT”], on 28.04.2017, after describing all the antecedent facts including suits that have been filed by respondent No.1 and referring to pending writ petitions in the High Court of Delhi, ultimately held that a trade union not being covered as an operational creditor, the petition would have to be dismissed. By the impugned order dated 12.09.2017, the National Company Law Appellate Tribunal [“NCLAT”] did likewise and dismissed the appeal filed by the appellant before us, statin






























































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