Insolvency resolution process costs exclude superannuation gratuity and leave encashment, which are governed by resolution-plan payment priorities.

Gratuity and leave encashment payable to an employee who superannuates during the corporate insolvency resolution process do not fall within insolvency resolution process costs. The exhaustive definition of such costs covers the resolution professional's remuneration and expenses actually incurred by the resolution professional during the process. Gratuity is a terminal benefit arising on cessation of employment, not an expense incurred by the resolution professional or salary for services during the process. Leave encashment is similarly excluded and must be dealt with under the resolution-plan framework and the Code's prescribed payment priority.

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Issues: Whether gratuity and leave encashment payable to an employee who superannuated during the corporate insolvency resolution process constitute insolvency resolution process costs.

Analysis: Section 5(13) of the Insolvency and Bankruptcy Code, 2016 employs an exhaustive definition of insolvency resolution process costs. Apart from the resolution professional's remuneration, the enumerated categories concern expenses actually incurred by the resolution professional during the insolvency resolution process. Gratuity accrues as a terminal benefit upon cessation of employment and is not an expense incurred by the resolution professional; it is also not equivalent to salary payable for services during the process. Leave encashment likewise cannot be included in insolvency resolution process costs and must be addressed under the resolution-plan framework and payment priority prescribed by the Code.

Conclusion: Gratuity and leave encashment do not form part of insolvency resolution process costs; the issue is decided against the appellant.

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