Both Provident Fund and Gratuity Fund is to be paid in full as per the Provisions of EPF and NP Act, 1952 and Payment of Gratuity Act, 1972 – Central Board of Trustees Vs. Shri Kumar Rajan RP Hindustan Newsprint Ltd. – NCLAT Channai
NCLAT held that in the Jet Aircraft Maintenance Engineers Welfare Association Vs. Ashish Chhawchharia, Resolution Professional of Jet Airways (India) Ltd. & Ors. (2022) ibclaw.in 861 NCLAT judgment, a clear direction was given to the Successful Resolution Applicant to make payment of the admitted claims towards Provident Fund dues and the same was upheld by the Hon’ble Apex Court in Jalan Fritsch Consortium Vs. Regional Provident Fund Commissioner & Anr. (2023) ibclaw.in 12 SC. The Hon’ble Apex Court has laid down that the share of workmen dues shall be kept outside the Liquidation assets and the concerned workmen/Employees shall have to be paid the same, out of such Provident fund, Gratuity Fund, if any available. The words, ‘if any available’, cannot be read to mean that the workmen and empolyees are not entitled for Provident fund, Gratuity Fund, Pension fund, if not available with the Liquidator.