ORDER

Per: Ajai Das Mehrotra, Member (Technical)

1. This application is filed under Section 9 of Insolvency and Bankruptcy Code, 2016 (for brevity ‘IBC, 2016’) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (for brevity ‘the Rules’) by Mr. Abhishek Binaykia (for brevity ‘Applicant’) with a prayer to initiate the Corporate Insolvency process against E-infochips Limited (for brevity ‘Corporate Debtor’).

2. The Applicant financial creditor is an ex-employee of the corporate debtor company.

3. The corporate debtor is a limited company, incorporated under the provisions of companies Act, 1956 on 10.06.1988, duly registered with Registrar of Companies, Ahmedabad with CIN: U72200GJ1988PLC010830 and having registered office at Ahmedabad, Gujarat State. Authorised share capital of the corporate debtor is Rs. 31,30,00,000/- and paid up share capital of the company is Rs. 26,64,69,776/-. The corporate debtor is in the business of providing services in the area of product engineering and semiconductors.

4. It is submitted by the applicant that he was employed as Associate Vice President (Marketing) with the corporate debtor. On 08.05.2018 the respondent issued a Participation Notice designating the applicant as a participant in a Bonus Plan which provided annual bonus opportunities for the key employees based on annual revenue growth of the company. The Annual Target Bonus for the measurement period beginning from 01.04.2018 to 31.03.2019 was Rs. 10,00,000/- (Rupees ten lacs only). The applicant duly executed the participation notice. No other document, except the participation notice dated 08.05.2018 concerning the bonus plan was shared with the applicant.

5. It is further submitted that the applicant had issued demand notice dated 22.06.2019 under Section 8 (1) of the IB Code. As per the affidavit in reply filed, the said notice was received by the corporate debtor on 24.06.2019 and the corporate debtor has replied the notice vide letter dated 02.07.2019. The applicant has stated that he became entitled to a sum of Rs. 10,00,000/- under the Participation Notice dated 08.05.2018, however, the respondent failed to pay such amount. Applicant’s claim is in respect of services provided to the respondent and thus it is operational debt within the meaning of the IB Code, 2016. Despite several reminders in person, over telephone and by e-mail, the respondent failed to pay the operational debt, therefore, the instant application under Section 9 of the IB Code was filed by the applicant for total amount of Rs. 10,00,000/-

(Rupees ten lacs only).

6. The corporate debtor filed affidavit in reply inter alia stating that  The respondent company was acquired by M/s. Arrow Electronics Inc. (hereinafter “Arrow”) whereby for retention of the erstwhile employees, Loan Term Bonus Scheme was introduced;

 On 01.08.2016 the applicant joined the respondent company and on 08.05.2018 was designated as a participant in the Bonus Plan which provided annual bonus opportunities for key employees based on annual revenue growth of the company;

 The participant notice refers to the terms and conditions for its application and the applicant has never disputed the terms and conditions;

 The applicant sent an email to the respondent specifying his desire to resign from the services of the respondent company;

 On 02.02.2019, the applicant wrote an email announcing his decision to move from the respondent company and requested for long term bonus;

 On 11.02.2019, through email, the respondent informed the applicant that:

(i) The applicant’s last working day would be 18.02.2019;

(ii) The applicant can continue to work till 31.03.2019 on part- time basis;

(iii) All the payments as agreed would be paid;\

(iv) The applicant doesn’t meet the criteria i.e. cut-off date (15^th June 2019), hence payment of bonus is improbable;

(v) Contention of the applicant that he is not aware of the terms and conditions of the Bonus Plan, is false;

 The