Stesalit Limited Vs Union of India & Ors. (Calcutta High Court)
Calcutta High Court held that gratuity doesn’t form part of liquidation estate. Hence, entire dues of workers would not come under liquidation assets. Thus, writ dismissed and order directing payment of gratuity upheld.
Facts- The present writ petition has been preferred against the Order dated 11.11.2024 passed by the Assistant Labour Commissioner (Central) & Controlling Authority in Case No. 48(24) 2020-E2 (Shri Arun Roy v M/s Stesalit Limited).
Vide the order under challenge the Assistant Labour Commissioner Central and Controlling Authority under Payment of Gratuity Act, 1972 directed payment of gratuity along with interest till actual payment.
Conclusion- National Company Law Appellate Tribunal (NCLAT) in Somesh Bagchi v. Nicco Corpn. Ltd. (Somesh Bagchi) as well SBI v. Moser Baer Karamchari Union (Moser Baer – NCLAT) wherein the Appellate Tribunal had held that gratuity does not form a part of the liquidation estate.
Held that there being no specific fund maintained for such purpose by the company, the controlling authority rightly held that the entire dues of the workers would not come under the ‘liquidation assets’ and a worker was entitled to his total dues from the assets of the company. Such claim was above the claim of other creditors. The controlling authority thus had jurisdiction to decide the issue of gratuity as the company never closed down. CIRP is a recovery mechanism for creditors unlike liquidation which is a way to end a company‟s life.
