# In the matter of Somesh Bagchi & Ors. Vs. Nicco Corporte Ltd., Through Liquidator CA (AT) No. 209-2018

> NCLAT judgment dated 2018-05-14. Citation: TCN-2018-NCLAT-00283. This is a Company Appeal (AT) (Insolvency) No. 209 of 2018. The central question is whether…

- **Court:** NCLAT
- **Order date:** 14 May 2018
- **Citation:** TCN-2018-NCLAT-00283
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/somesh-bagchi-ors-vs-nicco-corporte-ltd-through-liquidator-ca-9362762a

## Summary

### Background

This is a Company Appeal (AT) (Insolvency) No. 209 of 2018. The central question is whether the 'Gratuity Trust Fund' of employees can be considered an asset of the 'Corporate Debtor' for disbursement to creditors under the Insolvency and Bankruptcy Code (I&B Code). The appellant's counsel argues that the Liquidator disbursed ₹16 crores out of ₹27 crores to secured creditors without considering gratuity payable to workmen under Section 53 of the I&B Code, 2016.

## Facts

The case involves a dispute over the treatment of a 'Gratuity Trust Fund' in the context of a corporate insolvency resolution process. The Liquidator disbursed ₹16 crores out of ₹27 crores to secured creditors. The appellant argues that this disbursement occurred without due consideration of the gratuity payable to the workmen, potentially violating Section 53 of the I&B Code, 2016. The core factual issue is whether the Gratuity Trust Fund should be considered an asset of the Corporate Debtor for the purpose of disbursement to creditors or whether it should be protected for the benefit of the employees. The relevance of the gratuity fund is that it represents a statutory obligation of the corporate debtor to its employees, and its treatment during liquidation

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## Issues and analysis

### Issue 1: Whether the 'Gratuity Trust Fund' of the employees can be treated as an asset of the 'Corporate …

**Ratio:** The ratio is based on the interpretation of the I&B Code and related labor laws

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**Reasoning:** The court is considering whether the gratuity fund is an asset of the corporate debtor or

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**Interpretation:** The interpretation involves understanding the legal status of the Gratuity

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**Application:** The application involves determining whether the specific 'Gratuity Trust Fund'

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Somesh Bagchi &…
- **Respondents:** Nicco Corporte…; Nicco Corporte…

## Timeline

- **2018-05-14 — Order Da…**: The court raised the question of whether the 'Gratuity Trust Fund' can be treated as an…
- **2018-05-16 — Deadline for Filing…**: Appellant required to file requisites…

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