Now individuals can also seek NCLT help to recover dues
The Chennai bench of NCLT has admitted the application filed by the employees after the hotel failed to pay arrears of salary, gratuity and leave salary.
After the banks dragged Essar Steel and other 11 companies under Bankruptcy Code radar, now the individuals are knocking National Company Law Tribunal (NCLT) door, a media report said.
First of its kind, employees of Aruna Hotels in Chennai have recently filed bankruptcy application against their former employer to recover their dues, as reported by The Economic Times.
As per the report, the Chennai bench of NCLT has admitted the application filed by the employees after the hotel failed to pay arrears of salary, gratuity and leave salary.
If this case becomes a success or the employees get justice, then it is set to open doors for thousands of employees who are waiting to recover dues.
Moreover, the government is now coming up with various steps to tackle bankruptcy in case of individuals. This means, if an individual fails to repay loan or going through financial crisis, NCLT will help the individual.
According to a report by Financial Express, Bankruptcy law will ensure that individuals, who are already stressed and going through a difficult phase of life, are able to get easy access to the legal system, thus allowing them to restructure their debt-laden life.
Last year, Insolvency and Bankruptcy Code (IBC) was enacted but so far actions were taken in cases related to companies and corporate sector.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.