Resolution professional directing payment of gratuity in absence of gratuity fund is unjustified

Small Industries Development Bank of India (SIDBI) Vs International Mega Food Park Limited (NCLT Chandigarh)

NCLAT Chandigarh held that as there was no gratuity fund created by the Corporate Debtor, the Resolution Professional direct to pay gratuity to employee. Additionally, the salary and leave encashment of employees during CIRP period falls within the definition of insolvency resolution process cost.

Facts- In the present application, the applicant is seeking direction

Please become a Premium member. If you are already a Premium member, login here to access the full content.