NCLT Issues notice to FIITJEE in an insolvency plea by former employee over ₹2.6 Crore dues

The National Company Law Tribunal (NCLT) has taken cognizance of an insolvency plea filed against FIITJEE, a prominent coaching institute, by a former employee who claims unpaid dues amounting to ₹26 crore. In response to the petition, the NCLT has issued a formal notice to FIITJEE, requiring the institute to respond to the allegations. The tribunal will now proceed to examine the merits of the claim under the framework of the Insolvency and Bankruptcy Code (IBC). Based on its assessment, the NCLT will determine whether FIITJEE is liable for initiation of the corporate insolvency resolution process, which could have significant implications for the institute's financial standing and operations.