High Court of Madhya Pradesh

Jonathan Allen v. Zoom Developers Private Limited

24.08.2015

Company

Employee of company has same locus standi as creditor

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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