Moratorium under insolvency law does not stop determination of pre-CIRP wage dues; labour forum remains the proper venue.

Workers' entitlement to wages for a layoff period preceding commencement of CIRP arose from pre-CIRP labour-law facts, so the insolvency forum was not the proper for adjudicating that entitlement. Section 14 of the Insolvency and Bankruptcy Code bars enforcement and execution of claims, but does not prevent determination of the quantum of dues. The question whether salary was payable for the layoff period could be pursued before the appropriate labour forum. The Resolution Professional was justified in computing the claim only up to the layoff period, and the Adjudicating Authority declined interference with that computation.

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Issues: Whether the Adjudicating Authority and the Resolution Professional could entertain and quantify the workers' claim for wages relating to the layoff period preceding commencement of CIRP, and whether such claim was barred from adjudication by the moratorium under the Insolvency and Bankruptcy Code, 2016.

Analysis: The layoff notice preceded commencement of CIRP, and the dispute regarding entitlement to wages for the layoff period arose from pre-CIRP facts governed by labour law. The moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 bars enforcement and execution of claims, but does not prevent determination of the quantum of dues. The issue whether workers were entitled to salary for the layoff period was outside the insolvency jurisdiction and could have been pursued before the appropriate labour forum. The Resolution Professional, therefore, was justified in computing the claim only up to the layoff period and the Adjudicating Authority rightly declined interference.

Conclusion: The challenge to the computation of wages for the layoff period was not maintainable before the insolvency forum, and the impugned rejection of the claim was upheld.

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