Case Note & Summary
The appeal was filed by the appellant, representing the VR (HPF) Senior Citizens’ Welfare Association, challenging an order of the Adjudicating Authority regarding the gratuity claims of certain employees of the corporate debtor. The appellant had previously moved an application (IA/1578/2025) to keep these claims outside the liquidation estate under Section 36(4) of the Insolvency and Bankruptcy Code, 2016. On 23.06.2026, the Adjudicating Authority considered this application along with two others and directed the liquidator to reassess the claim based on a prior order that had set aside a related liability. The Tribunal noted that the order did not provide a cause of action for the appeal, as it merely instructed the liquidator to consider the claim after hearing the applicant. The respondent's counsel indicated that a final order in IA 1578/2025 was still pending. The Tribunal required the appellant to present any necessary submissions to the Adjudicating Authority but ultimately dismissed the appeal, concluding that the appellant had no grounds to feel aggrieved by the order.
Headnote
A) Insolvency Law - Liquidation Proceedings - Appeal Against Liquidator's Order - Section 36(4) of the Insolvency and Bankruptcy Code, 2016 - The appeal was dismissed as the order directed the liquidator to reassess the gratuity claim without prejudice to further developments. The Tribunal found that the appellant could not be aggrieved by the order as it merely required the liquidator to consider the claim after hearing the applicant. Held that the appeal lacked a valid cause of action (Paras 1-2).
Issue of Consideration
Whether the appellant had a valid cause of action to appeal against the order of the Adjudicating Authority regarding the gratuity claim.
Final Decision
The appeal was dismissed as the Tribunal found that the appellant could not be aggrieved by the order, which merely directed the liquidator to reassess the gratuity claim after hearing the applicant.
Law Points
- Liquidation proceedings
- Gratuity claims
- Adjudicating Authority
- Section 36(4) of the Insolvency and Bankruptcy Code
- 2016
