CIRP cannot be initiated for non-payment of LTC & Leave Encashment

Kishore K. Lonkar Vs Hindustan Antibiotics Ltd. (NCLAT Delhi) It is not the case of the Appellant that the amounts claimed are due towards any emoluments/salary for the services rendered by him to the ‘Corporate Debtor’, while he was in service. Though ‘service benefits’ like ‘LTC’ accrue, on account of the service rendered during the period of employment, the scope and objective of the Code is simply not just for recovery of ‘dues’ but Resolution of the Companies meant for ‘maximisation of the value of assets’, to promote entrepreneurship, availability of credit and balanc...