The National Company Law Appellate Tribunal (NCLAT), New Delhi Bench has held that provident fund and gratuity dues payable to workmen and employees do not form part of the liquidation estate under the Insolvency and Bankruptcy Code (IBC), even if no separate provident fund or gratuity fund has been maintained by the corporate debtor.
The bench of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member), dismissed appeals filed by a consortium of financial creditors led by the State Bank of India and upheld the National Company Law Tribunal (NCLT), Mumbai’s order directing the liquidator of Jet Airways to pay provident fund and gratuity dues in accordance with the Employees’ Provident Funds and Miscellaneous…