NCLAT dismisses appeal, rules gratuity and leave encashment are not Corporate Insolvency Resolution Process (CIRP) costs, must be settled via resolution plan.
New Delhi, Jul 20 (PTI) The NCLAT has dismissed an appeal by a former employee of Duncans Industries seeking priority payment of his gratuity and leave encashment dues by classifying them as insolvency resolution process costs.
A three-member bench upheld the earlier order passed by the Kolkata Bench of the National Company Law Tribunal (NCLT), which in September 2024 dismissed the plea of a former director of the previous management of Duncans Industries.
The appellate tribunal said such dues must instead be settled as per the company’s approved resolution plan.
“IRP cost essentially…