MUMBAI BENCH-IV Under Section 9 of the I&B Code, 2016 In the matter of:

Mr. Somnath Majumdar …Operational Creditor/Applicant V/s Regaliz Medicare Limited [CIN: U74999MH2016PLC285743]

...Corporate Debtor/Respondent Order pronounced on 04.07.2023 Coram:

Mr. Prabhat Kumar Mr. Kishore Vemulapalli Hon’ble Member (Technical) Hon’ble Member (Judicial)

A ppearances (via videoconferencing):

For the Petitioner(s) : Mr. Kavnish Chakaraborti, Advocate. For the Respondent(s) : Mr. Aniket Malu a/w Mr. Akshay Petkar and Mr. Pranav Shah, Advocates.

ORDER Per: Kishore Vemulapalli, Member (Judicial)

1. This is an application being C.P. (IB) No. 1103/NCLT/MB/C-

IV/2020 filed by Somnath Majumdar, the Operational Creditor/Applicant, under section 7 of Insolvency & Bankruptcy Code, 2016 (I&B Code) for initiating Corporate Insolvency Resolution Process (CIRP) in the matter of Regaliz Medicare Limited, Corporate Debtor.

2. The Application is filed by Mr. Somnath Majumdar, claiming default amount of Rs.59,06,524/- (Rupees Fifty-Nine Lakh, Six Thousand, Five Hundred and Twenty-Four only) inclusive of interest @18% p.a from 19.07.2016.

3. The date of Default is 24.09.2019 and also on 10^th day of each succeeding months as stated in Part-IV of the Petition. The petition is filed on 17.03.2020.

4. The case of the Operational Creditor is as under:

4.1 The Corporate Debtor appointed Somnath Majumdar vide appointment letter dated 22.07.2016 under the designation of Chief Operational Officer ("COO") on the terms and conditions contained therein. The Operational Creditor continued to hold the designation of COO from 19.07.2016, i.e. the date on which he took charge of his office, till 24.09.2019, until Corporate Debtor unconditionally accepted the resignation of Somnath Majumdar, and relieved him from service from said date.

4.2 Upon acceptance of resignation by the Corporate Debtor, the Operational Creditor by e-mail dated 09.10.2019, and 11.10.2019, inter alia, requested to settle the accounts immediately. The Corporate Debtor, inter alia, by e-mail dated 16.10.2019 admitted their obligation to settle the accounts of the Operational Creditor but with a motive to drag, delay and/or frustrate, the settlement of the accounts and payment due thereof, for the first time came with a lame and purported alibi that Corporate Debtor was yet to provide/share alleged information allegedly regarding the operations of the company and to meet the management for such purpose.

4.3 The Operational Creditor by its e-mail, inter alia, dated

16.10.2019, and 25.10.2019, inter alia, protested against such dilatory tactics of the Corporate Debtor to settle the final accounts, and further requested the Corporate Debtor to settle and pay off the same, with immediate effect.

4.4 The salaries of the Somnath Majumdar was agreed and fixed at Rs. 36,00,000/- (Rupees Thirty-Six Lakhs only) per annum. excluding other allowances. However, the company had kept on making short payment every month with an assurance from directors that the outstanding unpaid amount on account of monthly salary, whatsoever, would be made over subsequently, in due course, portraying that the Corporate Debtor was passing through financial problem.

4.5 The Operational Creditor, upon his resignation from the Corporate Debtor, and after unconditional acceptance of letter of release from service from the company dated 24.09.2019, entitled to payment of his unpaid debt and outstanding.

4.5.1 Unpaid part of monthly salary between 19.07.2016 (date of joining) to 31.03.2017, total Rs. 15,35,885/- (Rupees Fifteen Lakhs Thirty-Five Thousand Eight Hundred and Eighty-Five only);

4.5.2 Unpaid part of monthly salary between 01.04.2017

31.03.2018, total Rs. 12,28,092/ (Rupees Twelve Lakhs Twenty-Eight Thousand and Ninety-Two only);

4.5.3 Unpaid part of monthly salary between 01.04.2018 to

31.03.2019, total Rs. 19.84,001/- (Rupees Nineteen Lakhs Eighty-Four Thousand and One only); and

4.5.4 Unpaid part of monthly salary for the period of 6 months and 2