# In the matter of International Mega Food Park Limited IA No. 300,586 & 942-2020 in CP (IB) No.174-Chd-Chd-2018

> NCLT judgment dated 2022-10-13. Citation: TCN-2022-NCLT-00762. The case involves multiple Interlocutory Applications (IAs) filed in connection with a…

- **Court:** NCLT
- **Order date:** 13 Oct 2022
- **Citation:** TCN-2022-NCLT-00762
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/international-mega-food-park-limited-ia-no-300586-942-2020-in-cp-ib-no174-chd-ch-afb19a38

## Summary

### Background

The case involves multiple Interlocutory Applications (IAs) filed in connection with a Corporate Insolvency Resolution Process (CIRP) initiated against International Mega Food Park Limited. IA No. 300/2020 concerns a former employee's claim for unpaid gratuity, leave encashment, and salary during the CIRP period. IA No. 586/2020 addresses the Resolution Professional's request for the suspended directors to pay car rental and return vehicles belonging to the corporate debtor. IA No. 942/2020 pertains to the Resolution Professional's application seeking direction against the respondent to deliver the Refrigeration Vehicle and make payment of Rs.9,94,372/- as per calculation shown in Annexure A-8 with further directions to make payment of rent from 01-12-2020 up to the

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## Facts

Small Industries Development Bank of India (SIDBI) initiated Corporate Insolvency Resolution Process (CIRP) against International Mega Food Park Limited, which was admitted on 2019-02-28. Rakesh Sharma, an ex-employee of International Mega Food Park Limited, filed an application (IA No. 300/2020) seeking direction against the Resolution Professional to release amounts due towards gratuity, leave encashment, and salary during the CIRP period. Sharma worked as AGM Accounts and Finance for 7 years and was terminated on 2019-05-18. The Resolution Professional replied that only the current month's salary would be dispersed. Sharma had previously filed CA No. 411/2019 challenging his termination, which was dismissed with liberty to prefer any claim with regard to his

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## Issues and analysis

### Issue 1: Whether the Resolution Professional is obligated to release the amount due towards Gratuity, Leave …

**Ratio:** Gratuity liability, if any, cannot be part of the liquidation estate since only assets

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**Reasoning:** The court relied on the NCLAT's decision in Mr. Savan Godiwala's case, which stated that

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**Interpretation:** The interpretation is that gratuity, pension, and provident funds do not come

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**Application:** In this specific case, the Resolution Professional cannot be directed to make

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Small Industries…
- **Respondents:** International…

## Timeline

- **2018-01-01 — CP (IB) No.174/Chd/Chd/2…**: CP (IB) No.174/Chd/Chd/2…
- **2019-02-28 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against International Mega Food…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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