The liquidator is not obligated to pay gratuity to ex-employees post-acquisition of the corporate debtor as the claims become infructuous.

ORDER

1. This Application is filed by the Petitioners under Section 60 (5) of the Insolvency and Bankruptcy Code, 2016 seeking to Direct the liquidator to pay the gratuity amount to the Petitioners as per the list for workmen and employees who are eligible for payment of the gratuity as detailed in the list of workmen and employees uploaded to the Lanco website and as detailed in the Annexure – A and pass such other order or orders as may be deemed fit in the circumstances of the case.

2. Gist of the application:

2.1 It is averred that the Petitioners worked as Employees in M/s. Lanco Infratech Limited (hereinafter called the Corporate Debtor). It is stated that the Financial Creditor filed Company Petition under Section 7 of the IB Code which was admitted and RP was appointed and subsequently Liquidator was appointed to take possession of the properties of Corporate Debtor. On knowing the same, Ex-employee of Corporate Debtor filed the IA No.96/2019 with a prayer to pay with a gratuity to pay along with simple interest at 10% per annum and the said IA was allowed vide orders dated 01.10.2019.

2.2 It is averred that aggrieved by the said order, the liquidator has preferred an Appeal before Hon'ble NCLAT and the same was allowed by the Hon’ble NCLAT. Aggrieved by the said order in Appala Siva Kumar v. Savan Godiwala, preferred Civil Appeal No.2520/2020 before the Hon'ble Supreme Court and the Hon’ble Supreme Court vide orders dt. 28.02.2023 set aside the orders passed by the Hon'ble NCLAT.

2.3 It is averred that the Petitioners filed CA(IBC)/8/2023 for implementation of the orders of this Hon’ble Tribunal and in default to initiate contempt proceedings against the liquidator. The Hon’ble Tribunal vide orders No.8/2023 dt. 04.05.2023 directed the Liquidator to pay the gratuity within 1 week from the date of the order and file compliance along with the interest for the delayed period and directed to list the matter on 22.05.2023 for further direction. The Hon'ble Tribunal vide orders dt. 04.05.2023 in Cont. A (IBC) 8/2023 at Para No. 13(v) directed as detailed hereunder.

“Therefore, pending our final decision the payment of interest on delayed payment, and as the liquidator pleaded that there are some more workmen who are not covered in the petition but are eligible/entitled for gratuity, we direct the liquidator to examine such claims if any received as per the procedure and place the list of the eligible claimants if any received mentioning the amount if any payable to them, before this Tribunal on 22.05.2023 without fail”.

2.4 It is averred that the liquidator did not pass necessary orders on the claims received even after the Tribunal making it clear that the claims are to be settled. On 22.05.2023, the Tribunal closed the gratuity proceedings without passing any orders.

2.5 It is averred that the names of the Petitioners are also displayed in the list of workmen and employees in the Corporate Debtor website uploaded by the liquidator, who are eligible to claim gratuity under liquidation process from the Corporate Debtor. In the said list the liquidator has disclosed the number of claims received from the workmen as 56 and the employees as 937. In the claim status, he has admitted the claims of the Petitioner Nos. 1 to 38 and for the sake of convenience, wherein full details are given (Annexure-1). Petitioners have also submitted Form E (Proof of claims) by workmen and employees under Regulation 19 of the Insolvency and Bankruptcy Board of India (Liquidation process) Regulation 2016).

2.6 It is submitted that as Hon'ble Tribunal closed the proceedings on