NCLAT analyzed the maintainability of a Section 9 application ...

Workmen's Gratuity Claims Upheld as Legitimate Operational Debt, Corporate Debtor's Objections Rejected Under IBC Section 9

May 5, 2025

Case Laws IBC AT

NCLAT analyzed the maintainability of a Section 9 application for gratuity claims by workmen against a corporate debtor. The Tribunal held that gratuity claims constitute operational debt under IBC, and no pre-existing dispute existed to bar the application. The suits filed by the corporate debtor were deemed mala fide and not genuine disputes. The prior dismissal of a trade union's Section 9 application on procedural grounds did not operate as res judicata. The Tribunal rejected the corporate debtor's arguments regarding welfare dues and pre-existing disputes, finding the claims legitimate. Consequently, the appeal was dismissed, affirming the workmen's right to pursue their gratuity claims through the insolvency resolution process.

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NCLAT analyzed the maintainability of a Section 9 application ...

Workmen's Gratuity Claims Upheld as Legitimate Operational Debt, Corporate Debtor's Objections Rejected Under IBC Section 9

May 5, 2025

Case Laws IBC AT

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