The Lanco Infratech Employees Welfare Association filed an application under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking a direction to the liquidator to admit the claims of its members, who are former employees of Lanco Infratech Limited. These claims relate to unpaid dues, including a 'retention allowance' promised by the erstwhile management to employees who continued providing services to Lanco until 2018. The liquidator rejected the claims, arguing that the retention allowance was not part of the employment contract and lacked proper authorization. The applicant argued that the MD had approved the retention allowance on an internal note.
The Lanco Infratech Employees Welfare Association, representing approximately 212 former employees of Lanco Infratech Limited, filed an application seeking the admission of their claims for unpaid dues, including a 'retention allowance.' The employees claimed that the erstwhile management had promised this allowance to those who continued working for Lanco until 2018, even though their salaries were not paid for several months before and during the CIRP. The liquidator rejected these claims, arguing that the retention allowance was not part of the employment contract and lacked proper authorization. The applicant contended that the MD had approved the retention allowance on an internal note dated 18.05.2017, agreeing to a 7% retention allowance for employees continuing
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MD of Lanco Infratech noted on an internal note…
Applicant sought direction to pay salaries of…
The Lanco Infratech Employees Welfare Association filed an application under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking a direction to the liquidator to admit the claims of its members, who are former employees of Lanco Infratech Limited. These claims relate to unpaid dues, including a 'retention allowance' promised by the erstwhile management to employees who continued providing services to Lanco until 2018. The liquidator rejected the claims, arguing that the retention allowance was not part of the employment contract and lacked proper authorization. The applicant argued that the MD had approved the retention allowance on an internal note.
The Lanco Infratech Employees Welfare Association, representing approximately 212 former employees of Lanco Infratech Limited, filed an application seeking the admission of their claims for unpaid dues, including a 'retention allowance.' The employees claimed that the erstwhile management had promised this allowance to those who continued working for Lanco until 2018, even though their salaries were not paid for several months before and during the CIRP. The liquidator rejected these claims, arguing that the retention allowance was not part of the employment contract and lacked proper authorization. The applicant contended that the MD had approved the retention allowance on an internal note dated 18.05.2017, agreeing to a 7% retention allowance for employees continuing
…MD of Lanco Infratech noted on an internal note…
Applicant sought direction to pay salaries of…