TaxTMI 
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2025 (8) TMI 1227
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....ication - IA No.11 of 2025 filed by Resolution Professional ("RP") praying for approval of Resolution Plan, approved by the Committee of Creditors ("CoC") with 100% majority of CoC. The Adjudicating Authority by the impugned order has approved the Resolution Plan. The Resolution Plan provided for payout to the Operational Creditors, which included the employees of the CD. 2. Brief facts of the case necessary to be noticed for deciding the Appeal are: (i) The Corporate Insolvency Resolution Process ("CIRP") against the CD commenced vide order dated 02.02.2024 on an application under Section 7 filed by Oriental Bank of Commerce (now Punjab National Bank). Respondent No.4 was confirmed as RP. In pursuance of public announcement made on 03.02.2024, claims were filed. Claims were also filed by the employees. List of creditors was prepared. The RP after verifying, admitted the claims of the employees to the extent of approximately 73%. (ii) The Resolution Plan was approved by the CoC, which provided payment of total amount towards provident fund was Rs.10,51,00,841/-, i.e. 100% admitted claim and with regard to claim of employees was 61,79,77,862/-, out of which th....
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....in two weeks. The order dated 16.05.2025 is as follows: "16.05.2025: Learned counsel for the appellant submits that under the resolution plan which he has referred to in paragraph 20(D)(i) which provided that resolution applicant proposes Rs.6,30,00,000/- towards employees claim and further towards full and final discharge/settlement of the claims of Rs.10,51,00,000/- towards PF and gratuity. 2. Learned counsel for the appellant submits that the email has been sent by the RP dated 24.04.2025 which according to the appellant is not in conformity to the pay out as provided in the plan. 3. Learned counsel for the RP submits that whatever the amount was earmarked in the plan shall be paid to the employees towards their claim as well as the PF and gratuity dues. 4. Learned counsel for the SRA also submits that the payment shall be made as per the resolution plan. 5. Learned counsel for the RP as well as the resolution applicant is permitted to file an affidavit explaining the aforesaid pay outs within two weeks. 6. Rejoinder, if any, may be filed within two weeks. List this appeal on 03rd July, 2025. We however make it clear that resolution plan shall be implemented. Lea....
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.... Sixty Three Crore One Lakh Nine Thousand One Hundred and Sixty Four) towards Claims of the Employees against the Corporate Debtor. The Employees of the Corporate Debtor including those set out In Part A of Appendix II (List of Claims of the Operational Creditors as on 1 August 2024) shall be paid an amount of upto INR 6,30,10,916 (Indian Rupees Six Crore Thirty Lakhs Ten Thousand Nine Hundred and Sixteen) being the Employee Payment Amount, on a pro- rata basis, and in priority to the Financial Creditors of the Corporate Debtor, in full and final satisfaction of all their Claims including the Employee Claim Amount and any Claims in relation to unpaid dues of the Corporate Debtor towards provident funds, pension fund or gratuity funds of the Employees. 12. Clause 13.1.2 as noted above, provides that although claim of the employees was admitted for Rs.63,01,09,164/-, but the claim of the employees to be paid was Rs.6,30,10,916/-, which included unpaid dues of provident fund, pension fund and gratuity funds of the employees. In Clause 13.1.3, it was mentioned that amount of Rs.10,51,00,841/- is admitted toward the provident fund and the said ....
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....cess Email : cirp.vcl&.gmail.com" 14. The above email indicates that unpaid gratuity dues of Rs.2,86,32,757/-, which shall be paid out of the amount of Rs.6,30,10,916/- and thereafter the rest of the amount shall be paid on a pro-rata basis to the employees. The submission, which has been advanced by learned Counsel for the Appellant is based on a note occurring at page 83 of the paper book, which is as follows: "*Employee dues do not include gratuity dues which shall be paid in full in accordance with the resolution plan approved by the committee of creditors of the CD." 15. When we look into the above note, which begins with an asterisk mentions that 'employee dues do not include gratuity dues, which shall be paid in full in accordance with the Resolution Plan approved by the CoC of the CD'. It is relevant to notice that said asterisk in Form-H, relates to compliance certificate, which has been filed with Resolution Plan and is part of paragraph 28. Paragraph 28 begins with following: "28. The Resolution Professional has submitted Form-H under Regulation 39(4) of the CIRP Regulations to certify that the Resolution Plan as approved by the CoC meets all the requirements of th....
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....,30,10,916/-. The Resolution Plan has been approved by the CoC and Adjudicating Authority. The submission, which has been advanced by the Appellant is on the basis of note in Form-H, which was prepared by the RP providing for summary of the Resolution Plan and the payouts. The Adjudicating Authority in the impugned order under the heading "Salient Features of the Resolution Plan" has noted the key features and summary of the final plan in paragraph 20. In paragraph 20, in Clause-D, 'Treatment of Operational Creditors (Employees)' has been dealt with, which is as follows: "D) TREATMENT OF OPERATIONAL CREDITORS (EMPLOYEES) i) The Resolution Applicant proposes to pay Rs. 6,30,10,916 (Rupees Six Crore Thirty Lakhs Ten Thousand Nine Hundred and Sixteen) towards employees claims ("Employee Payment Amount") as set out in the List of Claims to the Employees of the Corporate Debtor, on a pro-rata basis, towards full and final discharge/ settlement of their Claims and Rs. 10,51,00,841 (Indian Rupees Ten Crore Fifty One Lakhs Eight Hundred and Forty One) towards provident funds, pension fund or gratuity funds of the Employees. ii) In case of excess Employees Dues ("Excess Employee Dues ....
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....anding salary or gratuity from the claim amount submitted. Further, even as on the date of submission of the Resolution Plan, the said bifurcation was not available. (v) The answering Respondent has made several attempts by writing various emails to the employees seeking bifurcation of their claim amount. The answering Respondent has been receiving the breakup from the employees, and based on the supporting documents provided by the employees, the total amount of outstanding gratuity dues is INR 3,02,95,411/- as on the date of filing of this Reply. (vi) Further, the answering Respondent understands that the gratuity dues are required to be paid in full and therefore the entire gratuity dues crystallized as on the date of making payment towards the claims of operational creditor from the Resolution Plan's consideration shall be paid in full as provided under Clause 13.1.2 and 13.1.4 of the Resolution Plan. Accordingly, the Resolution Plan provides for the payment towards the gratuity dues in full. (vii) After deducting dues towards gratuity, the balance Employee Payment Amount (if available) shall be distributed among the employees' claims on a pro rata basis in terms of Claus....