Since no provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 is in conflict with any of the provisions of the IBC, the applicability of even Section 238 of the IBC does not arise – Employees Provident Fund Organisation Vs. Sh. Nipan Bansal RP – NCLT Chandigarh Bench
February 1, 2023
The Adjudicating Authority held that since no provisions of the above said Act is in conflict with any of the provisions of the I & B Code, the applicability of even Section 238 of the Code does not arise. PF dues are not the assets of the CD as amply made clear by the provisions of Section 36(4)(a)(iii) of the Code, 2016. In short, it is a settled issue that when it comes to non-payment of the EPF arrears by the Corporate Debtor the issue is one of “ compliance of Law”. As clarified in the extracts above, all the dues raised by the EPFO under various sections, including interests and penalties are to be paid by the new establishment under Section 17B of the Employees Provident Funds and Miscellaneous Act, 1952. In the event of any grievance on the part of the corporate debtor with regard to PF arrear demand, there is a provision in the EPF & MP Act, 1952 for appeal against the demand raised by the EPFO Authorities.