Not all wages and salaries form a part of the CIRP costs
In a recent judgment of Sunil Kumar Jain and Ors. Vs Sundaresh Bhatt and Ors., the Supreme Court held that the wages or salaries of the workmen and employees who have actually worked during the corporate insolvency resolution process (“CIRP”) of a corporate debtor to enable the resolution professional (“RP”) to run the corporate debtor as a ‘going concern’ during the CIRP period will form a part of the CIRP costs.
For further details, please refer to the below document.
This Prism has been prepared by Harshil Shubham and Nakul Sonejee under the guidance of Aashit Shah.
