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2022 (6) TMI 314 - AT - Insolvency and BankruptcyCIRP process - Leave encashment amount payable to the applicant shall be treated as part of CIRP cost, or not - HELD THAT:- Admittedly, the gratuity amount of Rs. 8,02,500/- has been paid, during the pendency of the I.A before the Adjudicating Authority - Leave Encashment of Rs. 5,67,100/- has been admitted to be payable and since being Director he has been treated as related party and therefore, the Adjudicating Authority has rightly recorded that leave encashment amount payable to the applicant shall be treated as part of CIRP cost and as the Resolution Plan finalized by CoC the approval is pending before the Adjudicating Authority, once approved, the leave encashment will be considered in accordance with law. The compensation amount of Rs. 25,68,000/- claimed by the Appellant is not payable in terms of the agreement dated 13.02.2019 - Keeping in view the relevant rules and the Agreement dated 13.02.2019, it is held that there is no provision for payment of compensation to the Appellant. Further it is observed that even the stipulated one month notice period has been complied with and admittedly the salary payment of Rs. 2,14,000/- has also been paid. Since, payment has been settled in accordance with law, the payment of any further interest does not arise. Appeal dismissed.
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