Introduction to Prospect Legal

Prospect Legal is a trusted law firm with 15+ years of expertise in corporate litigation, insolvency, and employee rights advocacy. Our seasoned team of attorneys specializes in representing employees and stakeholders in liquidation proceedings before the National Company Law Tribunal (NCLT). With a proven track record in resolving complex insolvency disputes, we ensure employees recover unpaid wages, gratuity, and other dues during corporate liquidation. Our client-centric approach combines legal precision with empathy, safeguarding your financial interests during turbulent times.

Where You Can Find Remedies?

Employee claims during liquidation are primarily addressed by:

• National Company Law Tribunal (NCLT): Oversees liquidation processes and ensures compliance with the Insolvency and Bankruptcy Code (IBC), 2016.
• Liquidator: Appointed by NCLT to verify and settle employee claims under Section 35 of the IBC.
• NCLAT (National Company Law Appellate Tribunal): Hears appeals against NCLT orders.

Struggling to recover dues from a liquidated company? Contact Prospect Legal to file your claim and secure your rights.

📞 Call us at 7000-12-7225

Understanding the Employee Claim Process

Voluntary Process (Liquidator Negotiation):

1. Submit Claim Form: File Form F with the liquidator, detailing unpaid salaries, gratuity, or provident fund dues.
2. Verification: The liquidator verifies claims and categorizes them under Section 53 of the IBC (priority hierarchy).
3. Settlement: Receive payment as per the liquidation waterfall, prioritizing employee dues.

Compulsory Process (NCLT Intervention):

1. File Application: Approach NCLT if the liquidator rejects your claim or delays settlement.
2. Tribunal Hearing: Present evidence (e.g., employment contracts, salary slips) to validate your claim.
3. Enforcement: NCLT directs the liquidator to settle dues or face penalties.

Legal Protection Under Key Provisions

Section 326 of the Companies Act, 2013: Priority of Employee Dues

• When Can a Claim Be Filed?
  • If the company is under liquidation and has outstanding employee wages (up to 24 months).
  • For unpaid gratuity, provident fund, or other statutory dues.
  • Claims must be filed within 30 days of liquidation commencement.

Section 230 of the Companies Act: NCLT’s Authority in Schemes of Arrangement

• Powers of the Adjudicating Authority (NCLT):
  • Order the liquidator to prioritize employee claims over other unsecured creditors.
  • Penalize liquidators for non-compliance with statutory timelines.
  • Stay asset distribution if employee rights are compromised.

Process of Remedy Through Prospect Legal

Step 1: Initial Consultation & Case Assessment

• Claim Eligibility Check: Verify if dues fall under Section 53 priority categories.
• Evidence Review: Assess employment contracts, salary records, and termination notices.
• Strategy Planning: Decide between liquidator negotiations or NCLT intervention.
• Risk Analysis: Highlight challenges like incomplete documentation or disputed claims.

Step 2: Legal Documentation & Filing

• Draft Form F: Prepare and submit employee claim forms to the liquidator.
• Gather Evidence: Compile salary slips, bank statements, and PF/Gratuity records.
• NCLT Petition: File an application under Section 60 of the IBC for unresolved claims.
• Jurisdiction Compliance: Ensure filings align with the NCLT bench overseeing liquidation.

Step 3: Compliance & Negotiations

• Liquidator Liaison: Negotiate claim verification and settlement timelines.
• NCLT Hearings: Represent employees in tribunal proceedings for claim validation.
• Statutory Compliance: Ensure adherence to IBC timelines (e.g., 30-day claim window).
• Settlement Talks: Mediate with the liquidator for interim payments.

Step 4: Resolution & Final Actions

• NCLT Advocacy: Argue for priority payouts under Section 53(1)(b).
• Enforcement: Secure tribunal orders directing immediate settlement of dues.
• Appeal Management: Challenge adverse orders in NCLAT, if required.
• Post-Settlement Support: Assist with tax compliance on recovered dues.

For expert legal representation, reach out to Prospect Legal now.
📞 Call us at 7000-12-7225