Authority: National Company Law Appellate Tribunal, Principal Bench, New Delhi

Order Date: 28 October 2026

Case Overview

The National Company Law Appellate Tribunal (NCLAT) heard multiple interconnected applications concerning the distribution of Provident Fund and Gratuity dues in corporate liquidation proceedings. The matter involves appeals filed by State Bank of India and Others against Manoj Kumar Das & Others (Comp. App. (AT) (Ins.) No. 419 & 420 of 2026) and Sanjeev Chaddha & Others against State Bank of India & Others (Comp. App. (AT) (Ins.) No. 440 of 2026).

The liquidator, represented by Senior Counsel, brought to the Tribunal's attention that similar relief was sought in IA No. 5912 of 2026, which was already listed for hearing on 01 September 2026. The core legal issue revolves around the treatment of Provident Fund and Gratuity dues for workmen and employees in liquidation proceedings.

The Tribunal referenced its previous order dated 30 June 2026, which established that such dues must be excluded from the liquidation estate under Section 36(4)(a)(iii) of the Insolvency and Bankruptcy Code, 2016, and are not subject to distribution through the waterfall mechanism under Section 53(1)(b) of the Code.

However, the liquidator highlighted that several other appeals (Company Appeal (AT) (Insolvency) No. 375 of 2026; 419 & 420 of 2026; 522 and 523 of 2026; and 717 of 2026) contained orders restraining any distribution of amounts without leave of the Court. The liquidator therefore requested that all parties who filed these appeals be given notice to ensure comprehensive and coordinated orders.

Final Outcome

The Tribunal directed that court notices be issued to the appellants in all related company appeals mentioned in IA No. 5912 of 2026. Additionally, notices were ordered to be issued to the liquidator in IA Nos. 7691 and 7692 of 2026. The learned counsel for the liquidator accepted notice in IA Nos. 7691 & 7692 of 2026. The matters were adjourned and listed for further hearing on 06 November 2026 in the supplementary list.

Topics: Corporate Insolvency, Employee Dues, Liquidation Estate