Creditors winding up by ex- employee

This is an interesting discussion.

Valuable advice of learned experts/members is sought.

Bombay High Court

Balaram Abaji Patil vs Ragojiwalla (M.C.) on 22 March, 1960

Equivalent citations: (1960) IILLJ 491 Bom, (1960) IILLJ 491 Bom

Author: Tarkunde

Bench: V Tarkunde, V Datar

JUDGMENT

Tarkunde, J.

23.

“In the case before us, once the employee has performed his part of the contract, the minimum wages due to him are, in our opinion, a debt due from the employer.”

If it true even today then why can’t an employee be creditor????

433. Circumstances in which company may be wound up by Tribunal.

A company may be wound up by the Tribunal,-

(e) if the company is unable to pay its debts;

HIGH COURT OF PUNJAB & HARYANA, In The case of: Priyaraj Electronics Ltd. v.Motorola India (P.) Ltd., Appeal No. :C.A. No. 124-127 of 2006 and C.P. No. 17 of 2006, Decided on: April 17, 2009

 The terms “debt” itself has not been defined under the Companies Act and if we must make reference to the P Ramanatha Aiyar’s Concise Law Dictionary, 2004 Edition Law Lexicon it is defined as “a sum of money due under an express or implied agreement (as) a bond of bill or note; amount due or payable from one person to another in return for money, services, goods, or other obligation.”