In Brief
The Supreme Court examined whether 272 employees and workmen of a shipbuilding company operating under insolvency resolution could claim wages for the CIRP period and provident/gratuity funds. The Court held that wages during CIRP qualify as CIRP costs with first priority under the IBC only if: (1) the company operated as a going concern during CIRP, and (2) employees actually worked. These facts must be adjudicated individually before the liquidator within twelve weeks. Provident fund, gratuity and pension amounts are excluded from liquidation assets and must be paid separately. The Court partly allowed the appeal, directing the liquidator to independently assess claims while preserving the Rs. 2.75 crore deposited for employee dues.",
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