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Employees seek unpaid salaries in insolvency cases for Dishnet Wireless Limited & Aircel Limited. Tribunal directs salary payment.
Employees' representatives sought unpaid salaries during Corporate Insolvency Resolution Processes for 'Dishnet Wireless Limited' and 'Aircel Limited'. The Adjudicating Authority directed the Resolution Professional to provide salary details, leading to payment of salaries up to January 2019. The Appellate Tribunal allowed individual employees to address non-payment issues. Resolution Professionals were tasked with verifying claims and disbursing wages. Employee representatives were barred from revisiting the matter until the Resolution Process conclusion. Both appeals were resolved without costs incurred.
Issues: 1. Non-payment of salaries to working employees during Corporate Insolvency Resolution Process. 2. Request for release of salaries by employees' representatives. 3. Inability of Adjudicating Authority to pass specific directions. 4. Payment of salaries to employees by Corporate Debtors. 5. Non-payment of Dearness Allowance and basic salary to some employees. 6. Liberty granted to individual employees to approach Resolution Professionals for non-payment of basic salary. 7. Prohibition on reagitating the matter by employee representatives during Resolution Process completion.
Analysis: 1. Two separate 'Corporate Insolvency Resolution Process(s)' were initiated against 'Dishnet Wireless Limited' and 'Aircel Limited'. Employees' representatives filed applications for release of unpaid salaries during the process. 2. The Adjudicating Authority, considering the difficulty in arranging funds for salary payments, directed the Resolution Professional to provide employee details and salary information. The applications were disposed of on 16th October, 2018. 3. Funds were released to the Corporate Debtors as per the Supreme Court's direction, and salaries up to January 2019 were paid. 4. Salaries for the current period up to February 2019 were also paid to the working employees of both Corporate Debtors. 5. Some employees did not receive Dearness Allowance and basic salary. The Appellate Tribunal allowed individual aggrieved employees to approach Resolution Professionals with evidence of non-payment. 6. Resolution Professionals were tasked with verifying non-payment claims and ensuring wages are disbursed to eligible employees during the Corporate Insolvency Resolution Process. 7. The Tribunal prohibited employee representatives from reagitating the matter until the Resolution Process completion. Both appeals were disposed of with no costs incurred.
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