The National Company Law Tribunal (NCLT), Ahmedabad Bench, comprising of Mrs. Chitra Hankare (Judicial Member) and Dr. Velamur G Venkata Chalapathy (Technical Member), has held that the dues of Employees State Insurance Corporation (ESIC) are not at par with the dues of Provident Fund, Pension Fund or Gratuity Fund under IBC. Consequently, ESIC dues not being workmen dues, are neither entitled to be excluded from liquidation estate nor entitled to be paid in priority over other dues.
Section 36(4)(iii) of IBC does not define the dues of ESIC as workmen dues and specifically mentions Provident Fund, Pension Fund and Gratuity Fund to fall under such category.
Background Facts
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