Victor Vanya Bandlamudi vs Mercados Energy Markets India Pvt. Ltd

This is an application filed by the Applicant Victor Vanya Bandlamudi seeking to initiate corporate insolvency resolution process ("CIRP") against the Respondent Mercados Energy Markets India Pvt. Ltd. under Section 9 of the Insolvency and Bankruptcy Code 2016 ("the Code") for the alleged default on the part of the Respondent in settling an amount of Rs. 7,76,772/- payable for the services provided by the Applicant to the Respondent. The details of transactions leading to the filing of this application as averred by the Applicant are as follows:

i. The Respondent offered the position of senior manager to the Applicant vide an offer letter dated 09.01.2017. The Applicant accepted the abovementioned offer made by the Respondent by an acceptance letter dated 10.01.2017.

ii. In lieu of the efforts and dedication shown by the Applicant towards his work during the financial year 2017-18, the Respondent vide an appraisal letter decided to revise the Applicant's annual CTC from Rs. 28,50,000/- to Rs. 33,93,250/- which was applicable for the financial year 2018-19. The abovementioned appraisal letter also mentioned that a lump sum bonus of Rs. 10,35,750 will also be paid to the Applicant proportionate to the time spent by him with the Respondent during the financial year.

iii. The Applicant sent an email dated 31.10.2018 to the senior management of the Respondent requesting them to accept his resignation and relieve him by 31.01.2019. The Respondent vide letter dated 08.04.2019 accepted the resignation. The Applicant was relieved from his duties on 31.03.2019.

iv. The Applicant issued emails dated 01.05.2019, 02.07.2019 and 19.07.2019 to the Respondent asking the Respondent to discharge the abovementioned lumpsum bonus amount for the FY 2018-19 but the Respondent failed to make any payments in regard to it.

v. The Applicant sent a legal notice dated 01.08.2019 to the Respondent demanding his pending dues. The Respondent replied to the abovementioned legal notice vide letter dated 02.08.2019 and also replied vide letter dated 23.08.2019.

vi. The Applicant issued a demand notice dated 09.09.2019 to the Respondent. In response to the demand notice the Respondent sent a reply dated 25.09.2019.

Consequent to the service of copy of this application by the Applicant as well as issue of notice by this Tribunal the Respondent filed the following reply:

i. There is a pre-existing dispute between the parties as the lumpsum bonus being claimed by the Applicant is not payable to the Applicant during the notice period and therefore, the claims of the Applicant are frivolous. The Respondent has raised this dispute in the reply to the legal notice dated 23.08.2019 sent by the Respondent and reply to the demand notice dated 25.09.2018 sent by the Respondent.

The Applicant filed a rejoinder to the reply of the Respondent stating that the pre-existing dispute alleged by the Respondent is illusory and frivolous and has been raised with mala fide intention to avoid making payment of the bonus.

We have gone through the details of documents filed by both the parties the sides. It is apparent from the letters dated 02.08.2019 and 23.08.2019 sent by the Respondent to the Applicant that there existed a dispute between the parties with regard to payment of bonus to the Applicant. The Respondent has claimed in the above letters that according to discussion between the parties the bonus was to be given to the Applicant if certain conditions were fulfilled by the Applicant. The conditions related to extension of the notice period and execution of a retainership agreement between the parties. The Respondent claims in the letters that since these conditions were not fulfilled the bonus is not payable to the Applicant. In light of this pre-existing dispute between the parties the present application is dismissed with no costs.