Whether all dues of EPFO (Contribution u/s 7A, Interest u/s 7Q and Damages u/s 14 of the EPF Act) are to be treated outside Liquidation Estate under Section 36(4)(a)(iii) of IBC and Section 53(1) cannot be made applicable to such dues? – Mr. Anuj Bajpai Vs. Employee Provident Fund Organisation and Ors. – NCLAT New Delhi

In this case, Liquidator submitted that only contribution under Section 7A should have been treated as dues payable to the workers and employees under Section 36(4) of the Code and remaining amount should have been treated as other claims to be dealt in accordance with Section 53 Code.

Hon’ble NCLAT referred the judgment in Maharashtra State Cooperative Bank Vs. Assistant Provident Fund Commissioner & Ors. (2017) ibclaw.in 119 SC and held that interest payable by the employee under Section 7Q and the damages levied under Section 14B of the EPF Act will also be covered as dues from the employers for the purpose of Section 11(2) of the EPF Act.

The Hon’ble Bench also referred judgments in Sunil Kumar Jain and Ors. v. Sundaresh Bhatt and Ors. (2022) ibclaw.in 23 SC, Jet Aircraft Maintenance Engineers Welfare Association (2022) ibclaw.in 861 NCLAT and SBI v. Moser Baer Karamchari Union (2020) ibclaw.in 206 NCLAT and dismissed the appeal holding that the contention of the Liquidator is not tenable and stand rejected.

Whether all dues of EPFO (Contribution u/s 7A, Interest u/s 7Q and Damages u/s 14 of the EPF Act) are to be treated outside Liquidation Estate under Section 36(4)(a)(iii) of IBC and Section 53(1) cannot be made applicable to such dues? – Mr. Anuj Bajpai Vs. Employee Provident Fund Organisation and Ors. – NCLAT New Delhi Read Post »