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The NCLT Ahmedabad recently clarified that contributions due from a company to the Employees State Insurance Corporation (ESIC) do not fall under the category of “workers dues” under the IBC.
The Supreme Court rejected a challenge to the constitutional validity of provisions of the Companies Act that exclude statutory claims of workers' dues when a firm is undergoing the insolvency process.
![[BREAKING] Salary-wages during CIRP are costs for asset distribution under Section 53 IBC: Supreme Court - Vimarsana News](https://gumlet.assettype.com/barandbench%2F2021-09%2F82a5390b-dfab-41fe-97b2-faab744620a8%2FSupreme_Court_and_IBC__2_.jpg?w=1200&auto=format%2Ccompress&ogImage=true)
The Supreme Court held that salary wages of employees during the Corporate Insolvency Resolution Process (CIRP) under the IBC are to be treated as costs for asset distribution purposes under the IBC.