NCLAT Delhi Follows Nurani Subramanian: ESI Dues of Gupta Dyeing & Printing Mills Held in Trust

The National Company Law Appellate Tribunal, Principal Bench, New Delhi, in Regional Director Vs Manish Kumar (NCLAT Delhi), allowed the appeal of the Regional Director of the Employees' State Insurance Corporation and set aside the NCLT Ahmedabad order dated 28.11.2023 on ESI dues in the liquidation of Gupta Dyeing & Printing Mills Pvt. Ltd.

Background

The ESI Corporation filed IA No. 184/NCLT/AHM/2022 in CP (IB) No. 537/NCLT/AHM/2018 under Rule 11 of the NCLT Rules, 2016, asking that ESI dues be kept outside the liquidation estate. The liquidator had admitted its claim of Rs. 1,20,80,940 as an unsecured operational creditor and allotted amounts proportionately under the Insolvency and Bankruptcy Code, 2016.