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Jonathan Allen v. Zoom Developers Private Limited - (High Court of Madhya Pradesh) (24 Aug 2015)

Employee of company has same locus standi as creditor

Company

A three-judge bench of the Madhya Pradesh High Court answered the question, whether an employee of a company qualifies as a creditor of the company, in the affirmative. It held, “the employee of the Company has locus to file Company Petition in respect of his unpaid wages/salary and emoluments, as having been filed by a creditor of the Company”. Outstanding or unpaid wages or salary of an employee were likened to a debt: while not defined in the Companies Act, 1956, the Court defined debt in accordance with its use in common parlance.

Relevant : Read the full judgment in Jonathan Allen v. Zoom Developers Private Limited

Tags : EMPLOYEE CREDITOR COMPANY DEBT

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