Gratuity, leave encashment not part of CIRP cost: NCLAT
India — direction and magnitude withheld
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Key takeaway
NCLAT rules gratuity and leave encashment are not CIRP costs, reducing resolution cost burden for acquirers.
- Step 1 · The triggerNCLAT rules gratuity and leave encashment are not CIRP costs, reducing liability for resolution applicants.
- Step 2 · Knock-onLower resolution costs attract more bidders and higher bids for distressed companies, improving creditor recovery.
- Step 3 · Reaches youEmployees lose priority claim status, increasing risk for worker dues and potentially impacting labour relations in insolvent firms.
The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.
Source: Economic Times — Economy
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