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Regulation

A pittance for blood and sweat. Contract workers are getting shortchanged under the new IBC regime.

As per the recent amendments to the IBC, operational creditors, other than workmen and employees of the company, have got shifted to the bottom of the recovery pyramid. The move has affected manpower contractors and temping companies who are now getting only a fraction of dues in the resolution plans.
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10 Dec 2019 10 Mins Read 1 comments
A factory supervisor monitors progress on a shop floor. Getty Images
A factory supervisor monitors progress on a shop floor.
Sudhir Rajnekar is a 57-year-old Nagpur-based mechanical engineer with 30 years of experience. He is among the 105 workers employed under a five-year contract between Balaji Associates, a Hyderabad-based service provider for architectural work, and KSK Energy Venture’s Sai Wardha Power Generation (SWPGL) in November 2015. Rajnekar and the team was entrusted with the responsibility of operating the plant
protect the interest of operational creditors. Currently, the distribution of proceeds is decided by the committee of creditors (CoC) consisting of financial creditors only. The move comes at a time when operational creditors have been showing their outrage towards the CoC-approved resolution plans. Balaji will resume its fight at NCLAT on December 17. ( Graphics by Mohammad Arshad)
Sudhir Rajnekar is a 57-year-old Nagpur-based mechanical engineer with 30 years of experience. He is among the 105 workers employed under a five-year contract between Balaji Associates, a Hyderabad-based service provider for architectural work, and KSK Energy Venture’s Sai Wardha Power Generation (SWPGL) in November 2015. Rajnekar and the team was entrusted with the responsibility of operating the plant protect the interest of operational creditors. Currently, the distribution of proceeds is decided by the committee of creditors (CoC) consisting of financial creditors only. The move comes at a time when operational creditors have been showing their outrage towards the CoC-approved resolution plans. Balaji will resume its fight at NCLAT on December 17. ( Graphics by Mohammad Arshad)

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