As long as there is an existence of a fund by whatever name it is called which is for the use of the employee in future i.e. Provident fund or Superannuation fund, it is the workers’/employees’ money held in trust by the employer and as such cannot form a part of the liquidation estate – Nicco and Associated Companies Senior Management Superannuation Fund Vs. Vinod Kumar Kothari, Liquidator of Nicco Corporation Ltd. – NCLT Kolkata Bench
In cases where the employees would not opt for being a part of such a superannuation scheme would naturally get the equal or equivalent amount along with their salaries to keep them at par with those who do, in whose case i.e. those who would opt for the scheme, this money would be deposited in the superannuation fund. In either case the employer’s liability is established and the contribution of the employees whether directly or indirectly would not form a part of the liquidation estate.