NCLT Kochi Admits CIRP Against Seguro Foundations, Applies ₹1 Lakh Threshold As Claim Pre-Amendment

The National Company Law Tribunal at Kochi has admitted an insolvency plea against Seguro Foundations & Structures Pvt Ltd over unpaid salary dues, making it clear that the earlier Rs 1 lakh threshold will apply as the case was filed before the law was revised.

The order was passed by Judicial Member Vinay Goel.

The case had been brought by Shaji Mathew, an operational creditor, seeking insolvency proceedings over unpaid salary. Mathew had been appointed as a project manager for a school modernization project in the Malappuram district at a monthly salary of Rs 80,000.

According to the petition, the company stopped paying his salary from December 2018 without terminating his employment. This resulted in arrears of Rs. 10.40 lakh, which, along with interest at 12% per annum, aggregated to Rs 11.02 lakh.

Even after repeated reminders and a demand notice issued on January 22, 2020, the company did not clear the dues which led to the initiation of insolvency proceedings.

As the case progressed, INKEL Ltd was brought in as an additional respondent. The move was based on claims that it held a majority stake in the company and that most of the company's assets had been transferred to it.

This was contested before the appellate tribunal and later the Supreme Court. While interim relief was granted, the proceedings were allowed to continue against the original corporate debtor.

During the course of the case, Mathew passed away. His legal heirs were then brought on record to carry the matter forward.

On the issue of maintainability, the Tribunal relied on an appellate tribunal ruling to hold that the relevant date for determining the threshold is the date of filing, not registration. It observed:

“the present Petition was filed on 12.03.2020, at which time the minimum default threshold prescribed under Section 4 was Rs.1 lakh. Accordingly, the present Petition is governed by the earlier threshold of Rs.1 lakh.”

The Tribunal noted that the operational debt of Rs 11.02 lakh exceeded the applicable threshold.

It further recorded that the company failed to appear despite service of notice and was proceeded against ex parte. The Tribunal found that the relationship between the parties was that of employer and employee, the default was established, and there was no pre-existing dispute.

Holding the case fit for admission under Section 9 of the Insolvency and Bankruptcy Code, the Tribunal said:

“Given the above, this Adjudicating Authority finds that this petition filed by the Operational Creditor for initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor is a fit case to be admitted under Section 9 of the IBC, 2016. .”

Accordingly, the tribunal admitted the petition, imposed a moratorium, and appointed Sankar P Panicker as the Interim Resolution Professional to take over the management of the corporate debtor.

For Petitioner: Advocate Harikumar G Nair

For INKEL Ltd: Advocate Aditya Venugopal