personal Liability of directors to pay gratuity
Y Singh N Rajput
(Querist) 04 July 2011
This query is : Resolved
A sick pvt ltd company closed its operations. The assets were sold by bank under securitization act. The labour court orders that the company pay gratuity and other dues of the retrenched employees.(The company is yet not bound up).
Please advise against whom the liablity to pay the dues would remain? - (a) Personally the directors of the Company, (b) The Bank that had taken over the factory/assets or, (c) the purchaser of the assets?
Isaac Gabriel
(Expert) 04 July 2011
Payment of benefits to employees is the first charge to the company.The controlling authority who passed orders need to initite action under the RR Act for the recovery of the amount.The district collector will attach amount to the extent needed before liqidating the company.
