NDLI: J K Jute Mill Mazdoor Morcha Vs. Juggilal Kamlapat Jute Mills Company Ltd. Through Its Director

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	5(20) trade union demand notice operational creditor noscitur a sociis ss.3(23) IBC (21) and 8 Interpretation of Statutes
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Companies Act, 1956 (1 of 1956) Insolvency and Bankruptcy Code, 2016 (31 of 2016) Trade Unions Act, 1926 (16 of 1926) Sick Industrial Companies (special Provisions) Act, 1985 (1 of 1986)
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Insolvency and Bankruptcy Code, 2016– ss.3(23), 5(20),(21) and 8– A trade union, whether an operational creditor for the purpose of the 2016 Code – Respondent-Jute mill was being closed and reopened several times until it was finally closed in 2014 – Proceedings pending under the 1985 Act, the appellant-trade union issued demand notice on behalf of around 3000 workers, u/s.8 of the Code, for their outstanding dues – Replied by the respondent – National Company Law Tribunal (NCLT) dismissed the petition holding that a trade union is not an operational creditor – NCLAT dismissed the appeal filed by the appellant stating that each worker may file individual application before the NCLT– Held: Under s.5(20) of the Code, an operational creditor refers to any “person”– s.3(23) states that “person” inter alia includes “any other entity established under a statute...”– A trade union is certainly an entity established under a statute- the 1926 Act, and would therefore fall within the definition of “person” u/s.3(23) – An “operational debt”, meaning a claim in respect of employment, could certainly be made by a person duly authorised to make such claim on behalf of a workman– Rule 6, Form 5 of the 2016 Rules, also recognises the fact that claims may be made not only in an individual capacity, but also conjointly – Further, a registered trade union recognised by s.8 of the 1926 Act, makes it clear that it can sue and be sued as a body corporate u/s.13 of that Act– Instead of one consolidated petition by a trade union representing number of workmen, filing individual petitions would be burdensome as each workman would have to pay insolvency resolution process costs, costs of the interim resolution professional etc.– Thus, a registered trade union formed for the purpose of regulating the relations between workmen and their employer can maintain a petition as an operational creditor on behalf of its members– A joint petition could be filed u/r. 6 r/w Form 5 of the 2016 Rules, with authority from several workmen to one of them to file such petition on behalf of all – Judgment of the NCLAT set aside – Matter remanded to the NCLAT to be decided on merits, expeditiously –Trade Unions Act, 1926 – ss.2(g), (h), 8, 13, 15(c) and (d) – Sick Industrial Companies (Special Provisions) Act, 1985 – Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 – r.6 r/w Form 5 – Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 – Regulations 31 and 33. Interpretation of Statutes – “noscitur a sociis” – Held: In Section 3(23) of the Code, a “person” would include any other entity established under a statute under Clause (g) – Clause (g) has to be read noscitur a sociis with the previous clauses of s.3(23) – Insolvency and Bankruptcy Code, 2016 – s.3(23)(g).
Judge	Hon'ble Mr. Justice R.F. Nariman
Neutral Citation	2019 INSC 595
Petitioner	J K Jute Mill Mazdoor Morcha
Respondent	Juggilal Kamlapat Jute Mills Company Ltd. Through Its Director
SCR	[2019] 7 S.C.R. 1048
Judgement Date	2019-04-30
Case Number	20978

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J K Jute Mill Mazdoor Morcha Vs. Juggilal Kamlapat Jute Mills Company Ltd. Through Its Director

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J K Jute Mill Mazdoor Morcha Vs. Juggilal Kamlapat Jute Mills Company Ltd. Through Its Director

J K Jute Mill Mazdoor Morcha Vs. Juggilal Kamlapat Jute Mills Company Ltd. Through Its Director

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