9911796707
TMI Blog2022 (3) TMI 1108X X X X Extracts X X X X X X X X Extracts X X X X ..... d direct the RP to pay the total amount of Rs. 76,56,448/- due to the Applicants towards the salaries for their services rendered during the above mentioned period. 2. The facts as stated in the Application are briefly as follows: The Applicants are rendering services as workmen of the Corporate Debtor. The RP was appointed to take over the affairs of the Corporate Debtor. Vide order dated 14.05.2020 Section 7 of IBC application was admitted by this Tribunal. CIRP process is now being lead by the RP appointed by this Tribunal. The total salaries due to the Applicants till the month of May, 2020 amounted to Rs. 2,84,78,023/-. The Applicants have filed their respective claims with the RP. Apart from the salaries, there are unpaid PF amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iew of the lockdown declared due to the outbreak of Covid-19 pandemic, several difficulties were faced by the RP in taking control of the Corporate Debtor. The erstwhile management failed to formally communicate the status of the employment of the employees, workmen of the Corporate Debtor by the time he took over, the plant has remained closed for nearly a period of 2 years and required substantial repair works to make it operational again. Cash flow was not available due to the non-operation of the factory in order to fund the salaries of the employees, workmen. The RP made all reasonable efforts to correct the said irregularities. He conducted detailed analysis of the employee cost but due to lack of aggregate information from the erstwh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad not signed the consent letter and that it could have to be computed as CIRP costs and accordingly approved by the CoC. However, since the plant has been closed on since December, 2018, CoC was not in a position to bear the additional costs towards the employees. It is also stated that none of the employees or workmen of the Corporate Debtor were terminated during the CIRP. It is stated that it is beyond his authority to make payments to the Applicants without approval of the CoC. It is false that he is deliberately stalling the payments. 4. Heard the arguments of the Applicant's Counsel and the RP. It is an admitted fact that the present Applicants are not signatories to the no work & no pay agreement. It is also not disputed that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... solution Applicant shall pay the CIRP cost at actuals, in priority to the payment of all debts of the CD. * The Current estimate of the CIRP costs is INR 4,47,28,219 as of 15.05.2021. * It is hereby clarified that any increase in CIRP costs up to INR 6,00,00,000 shall be borne by the Resolution Applicant in addition to any payments undertaken to be made under this Resolution Plan. * In case there is an increase in CIRP cost on account of workmen and employees such that total CIRP cost becomes more than INR 6,00,00,000, then incremental amount beyond INR 6,00,00,000 shall be adjusted from the workmen & Employee Settlement amount, except the fixed amount of INR 1,22,23,019 to be paid to the workmen. * In case there is an increase in C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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