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Neutral impactStocks

Gratuity, leave encashment not part of CIRP cost: NCLAT

Economic Times 11 hrs ago·20 Jul 2026, 7:46 pm

The National Company Law Appellate Tribunal (NCLAT) has ruled that gratuity and leave encashment are not part of the costs associated with the Corporate Insolvency Resolution Process (CIRP). This decision is significant for investors as it clarifies the treatment of such dues in the event of a company's insolvency. Investors should watch for how this ruling affects the handling of employee benefits in future insolvency cases, and its potential impact on the broader market.