Salary claims during CIRP require proof of appointment, approval and actual service; unsupported wages were disallowed.

A salary claim during CIRP must rest on credible, contemporaneous and consistent proof of appointment, board approval and actual service rendered. The asserted appointment of a former director as General Manager was unsupported by board notice or minutes, conflicted with the corporate records, and was raised belatedly after action concerning withdrawals during moratorium. As no reliable material showed that the individual actually worked for the corporate debtor, the claim for unpaid wages was not maintainable and the order allowing salary was set aside.

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Issues: Whether the claimed appointment of the former director as General Manager was supported by reliable documentation and whether he was entitled to unpaid salary for the alleged services rendered during CIRP.

Analysis: The claim for salary rested on an appointment letter dated before the alleged board approval, while the corporate records stated that no board meeting took place during the relevant financial year. No board notice or minutes were produced to substantiate the alleged approval. The claim was also raised only much later, after proceedings had been taken against the former directors for withdrawal of funds during moratorium. The Resolution Professional consistently maintained that no work was performed for the corporate debtor, and the supporting affidavits were not found sufficient to overcome the documentary inconsistencies. An employee who has not actually rendered service during CIRP is not entitled to wages.

Conclusion: The appointment claim was not proved and the salary claim was not maintainable; the order allowing unpaid salary was set aside.

Ratio Decidendi: A salary claim during CIRP must be supported by credible, contemporaneous and consistent records of appointment, approval and actual service rendered; in the absence of such proof, wages cannot be allowed.

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