IMPORTANT POINTS
(1) One of principal objects of IBC is providing for revival of Corporate Debtor and to make it a going concern. Every attempt has to be first made to revive concern and make it a going concern, liquidation being last resort.
(2) Court should not go into academic issues and seek to interpret provisions of law when it is not necessary for deciding issues in appeal(s).

JUDGMENT :

B.R. GAVAI, J.

1. Both these appeals are being decided by this common judgment and order.

2. The appellant-D. Ramjee in Civil Appeal No. 2901 of 2021, who is an ex-employee of M/s Aruna Hotels Ltd. (hereinafter referred to as ‘the Corporate Debtor’) has approached this Court being aggrieved by the resolution passed in the 8th Committee of Creditors (hereinafter referred to as ‘CoC’) meeting dated 25.5.2021, the order passed by the National Company Law Tribunal, Chennai (hereinafter referred to as ‘NCLT’ or ‘the Adjudicating Authority’) dated 4.6.2021 thereby permitting withdrawal of Corporate Insolvency Resolution Process (hereinafter referred to as ‘CIRP’) in respect of the Corporate Debtor and the order passed by the Adjudicating Authority/NCLT dated 6.7.2021 thereby closing the proceedings initiated by D. Ramjee.

3. Civil Appeal No. 1792 of 2021 is filed by K.N. Rajakumar, suspended Director of the Corporate Debtor (respondent No. 1 in Civil Appeal No. 2901 of 2021 filed by D. Ramjee) thereby challenging the order passed by the National Company Law Appellate Tribunal, Chennai Bench (hereinafter referred to as ‘NCLAT’) dated 30.4.2021 dismissing the appeal filed by K.N. Rajakumar challenging the order dated 22.4.2021 passed by NCLT vide which NCLT had directed the Resolution Professional (hereinafter referred to as ‘RP’) to convene a meeting of CoC consisting of the members who constituted CoC originally in the year 2017, soon after the order of admission of CIRP was passed by NCLT.

4. The facts giving rise to the present appeals have been taken from Civil Appeal No. 2901 of 2021 and are as under:

The Corporate Debtor was incorporated under the provisions of the Companies Act, 1956 on 9.9.1960. It had started various businesses like sugar, distillery, flour mill, chemical unit, finance company, a 4star hotel etc. in Chennai, but as on date owns only a hotel in Chennai. The hotel business of the Corporate Debtor was shut down for more than 7 years.

D. Ramjee joined the Corporate Debtor as a Junior Assistant on 11.5.1964. Since D. Ramjee was not receiving salary regularly, he sought to get relieved from the services with effect from 30.9.2006 and sought for settlement of his salary dues. However, it is his case that as the Corporate Debtor requested him to continue in the service, he continued to do so on a salary which was much less than the one he was entitled to. On 31.5.2013, D. Ramjee officially retired after serving for 49 years.

In February, 2015, the Management of the Corporate Debtor was taken over by one Subasri Realty Limited, thereby acquiring the shareholding of the earlier promoters, M. Sivaram and his family. According to D. Ramjee, the new Management disowned itself from the admissions of previous management pertaining to settlement of arrears of salary.

On 27.2.2017, Ramjee issued a Demand Notice under Section 271(1)(a) of the Companies Act, 2013 read with Section 8(1) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as ‘the IBC’) calling upon the Corporate Debtor to pay dues of outstanding salary amounting to Rs. 2,60,68,883/- along with interest at the rate of 12%.

On failure of the Corporate Debtor to comply with the notice, D. Ramjee filed an application under Section 9 of the IBC, being C.P. No. 478 of 2017 on 3.4.2017 before NCLT. Two other employees of the Corporate Debtor had also filed applications under Section 9 of the IBC. Vide order dated 13.6.2017, the Adjudicating Authority admitted D. Ramjee’s application under Section 9 of the IBC and initiated CIRP against the Corporate Debtor. One P. Sriram was appointed as interim RP and moratorium was declared.

Being aggrieved by the order passed by NCLT dated 13.6.2017, the Corporate Debtor filed an appeal being Company Appeal (AT) (Insolvency) No. 87 of 2017 before NCLAT. NCLAT vide order dated 2.8.2017 allowed the said appeal filed by the Corporate Debtor and set aside the order dated 13.6.2017 passed by NCLT. NCLAT had also recorded