Gratuity fund in liquidation cannot be conclusively adjudicated here; employees may pursue the dispute before the proper forum.

The gratuity trust fund was stated not to have been treated as part of the corporate debtor's assets or used for distribution to creditors in liquidation. The tribunal noted that the alleged shortfall in the gratuity fund, the responsibility for making it good, and the authority competent to secure payment to eligible employees could not be finally determined in the appeal or company petition. Any contrary observation in the impugned order was treated as non-binding, and the employees were left free to approach the appropriate authority or court of competent jurisdiction.

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Issues: Whether the gratuity fund of employees could be treated as an asset of the corporate debtor in liquidation, and whether any final determination could be made regarding alleged shortfall in the gratuity fund.

Analysis: The liquidator stated that the amount lying in the gratuity trust fund had not been treated as part of the corporate debtor's assets and had not been used for distribution to creditors. The tribunal noted that questions regarding the alleged shortage in the gratuity fund, responsibility for making it good, and the authority competent to ensure payment to eligible employees could not be decided in the appeal or company petition. It further observed that any contrary observation in the impugned order should be treated as non-binding and that the employees were free to approach the appropriate authority or a court of competent jurisdiction.

Outcome: No final adjudication was made on the merits of the gratuity-fund dispute. The appeal was disposed of with liberty to the employees to pursue their grievance before the appropriate forum, and the impleadment applications became infructuous.

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