This case involves an appeal against an order passed by the Adjudicating Authority/National Company Law Tribunal, Hyderabad Bench, directing the Liquidator to pay gratuity to the ex-employees of the Corporate Debtor, Lanco Infratech Limited. The Liquidator contended that the Corporate Debtor did not maintain a separate gratuity fund, and therefore, the payment could not be made from the running accounts. The Adjudicating Authority rejected the Liquidator's contention that gratuity payment should not be treated as part of the liquidation estate. The ex-employees filed an interim application seeking direction to treat gratuity dues on the highest priority, arguing that Section 4(1) of the Payment of Gratuity Act, 1972 mandates payment of gratuity and that Section
…1. Mr. Savan Godiwala, the liquidator of Lanco Infratech Limited, appealed against an order directing him to pay gratuity to the company's ex-employees.
2. The Adjudicating Authority directed the Liquidator to provide sufficient provision for gratuity payment, rejecting the contention that gratuity cannot be treated as part of the liquidation estate.
3. The ex-employees filed an interim application seeking priority for their gratuity dues, arguing that the Corporate Debtor failed to maintain a gratuity fund.
4. The Adjudicating Authority's order, dated 13th July 2018, directed the Resolution Professional to pay gratuity if payable, subject to the availability of funds.
5. The liquidation order for the Corporate Debtor was passed on August 27, 2018, under Section 33 of the
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Date of the Impugned Order passed by the Hon'ble…
C.P. (IB) No.111/7/HDB/2017 filed under Section…
This case involves an appeal against an order passed by the Adjudicating Authority/National Company Law Tribunal, Hyderabad Bench, directing the Liquidator to pay gratuity to the ex-employees of the Corporate Debtor, Lanco Infratech Limited. The Liquidator contended that the Corporate Debtor did not maintain a separate gratuity fund, and therefore, the payment could not be made from the running accounts. The Adjudicating Authority rejected the Liquidator's contention that gratuity payment should not be treated as part of the liquidation estate. The ex-employees filed an interim application seeking direction to treat gratuity dues on the highest priority, arguing that Section 4(1) of the Payment of Gratuity Act, 1972 mandates payment of gratuity and that Section
…1. Mr. Savan Godiwala, the liquidator of Lanco Infratech Limited, appealed against an order directing him to pay gratuity to the company's ex-employees.
2. The Adjudicating Authority directed the Liquidator to provide sufficient provision for gratuity payment, rejecting the contention that gratuity cannot be treated as part of the liquidation estate.
3. The ex-employees filed an interim application seeking priority for their gratuity dues, arguing that the Corporate Debtor failed to maintain a gratuity fund.
4. The Adjudicating Authority's order, dated 13th July 2018, directed the Resolution Professional to pay gratuity if payable, subject to the availability of funds.
5. The liquidation order for the Corporate Debtor was passed on August 27, 2018, under Section 33 of the
Date of the Impugned Order passed by the Hon'ble…
C.P. (IB) No.111/7/HDB/2017 filed under Section…