SC upholds Section 327(7) Companies Act which Overrides Payment of Workers dues during IBC CIRP

Moser Baer Karamchari Union Vs Union of India (Supreme Court of India) By way of this writ petition under Article 32 of the Constitution of India, the petitioner – union has sought for an appropriate writ, direction or order striking down Section 327(7) of the Companies Act, 2013 as arbitrary and violative of Article 21 of the Constitution of India. The petitioner has also sought for an appropriate direction so as to leave the statutory claims of the “workmen’s dues” out of the purview of waterfall mechanism under Section 53 of the Insolvency and Bankruptcy Code, 2016. As per Secti...