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Informative

Employees State Insurance Amount Lying With Corporate Debtor Not Part Of Liquidation Estate: NCLAT

Update / Judgement Date

07 Oct 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Insolvency & Bankruptcy Code

NCLAT ruled that Employee State Insurance (ESI) amounts held by a corporate debtor are not part of the liquidation estate. The article highlights the protection of statutory employee contributions during insolvency proceedings and underscores the distinction between corporate assets and employee benefits. This decision reinforces employee rights under labour and insolvency laws.