Special issues-Employee Dues-EPFP/Provident Fund/ESI/Gratuity

Any claims filed on the basis of EPFO Assessment subsequent to the date of Liquidation could not have been entertained in the Liquidation Proceeding of the Corporate Debtor – Employees Provident Fund Organisation Vs. Chandra Prakash Jain Liquidator of Mekastar Engineering Ltd. – NCLAT New Delhi

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Any claims filed on the basis of EPFO Assessment subsequent to the date of Liquidation could not have been entertained in the Liquidation Proceeding of the Corporate Debtor – Employees Provident Fund Organisation Vs. Chandra Prakash Jain Liquidator of Mekastar Engineering Ltd. – NCLAT New Delhi Read Post »

Any claims subsequent including any on the basis of assessment subsequent to the liquidation commencement date cannot be given any credence by the liquidator – The Assistance Provident Fund Commissioner (Legal), EPFO Vs. Chandra Prakash Jain, Liquidator of Khushi Foods Ltd. – NCLAT New Delhi

Hon’ble NCLAT held that there is no dispute that assessment for the interest was done in the year, 2021 much after the liquidation commencement date. The claim under Regulation 12 and 16 of Liquidation Regulation, 2016 had to be filed as on liquidation commencement date. When the claim has to be filed on the liquidation commencement date any claims subsequent including any on the basis of assessment subsequent to the liquidation commencement date cannot be given any credence by the liquidator and no error was committed by liquidator in not accepting the claim of damages and interest consequent to the assessment paying in the year 2021.

Any claims subsequent including any on the basis of assessment subsequent to the liquidation commencement date cannot be given any credence by the liquidator – The Assistance Provident Fund Commissioner (Legal), EPFO Vs. Chandra Prakash Jain, Liquidator of Khushi Foods Ltd. – NCLAT New Delhi Read Post »

Even in case of attachment order issued prior to CIRP commencement and bank account attached during CIRP, EPFO’s claims are to be treated on par and the entire amount of claim under Section 7A, 7Q and 14B of the EPF Act has to be paid to respective PF authority from the funds available in the attached bank accounts of Corporate Debtor – Truvisory Insolvency Professionals Pvt. Ltd. (IPE) Vs. Employees’ Provident Fund Organisation and Ors. – NCLAT New Delhi

Hon’ble NCLAT held that the claims of all the eight EPFO’s are to be treated on par and the entire amount of claim under Section 7A, 7Q and 14B of the EPF Act has to be paid to respective PF authority from the funds available in the attached bank accounts of Corporate Debtor. In case the amount available is not sufficient the same shall be met from disposal of other assets of the Corporate Debtor. Balance left after meeting the claims of the EPFO Authorities shall form part of the liquidation estate.

Even in case of attachment order issued prior to CIRP commencement and bank account attached during CIRP, EPFO’s claims are to be treated on par and the entire amount of claim under Section 7A, 7Q and 14B of the EPF Act has to be paid to respective PF authority from the funds available in the attached bank accounts of Corporate Debtor – Truvisory Insolvency Professionals Pvt. Ltd. (IPE) Vs. Employees’ Provident Fund Organisation and Ors. – NCLAT New Delhi Read Post »

Claim against demand order of EPFO passed after commencement of Liquidation cannot be admitted in the liquidation proceedings – Central Board of Trustees, Employees’ Provident Fund Vs. Mr. Bhavesh Rathod, Liquidator Ashapura Intimates Fashion Ltd. – NCLT Mumbai Bench

Hon’ble NCLT Mumbai referring Section 33(5) of IBC and judgment in DBS Bank India Ltd. Vs. Kuldeep Verma, Liquidator of Eastern Gases Ltd. (2023) ibclaw.in 103 NCLAT, held that the order creating the demand against the Corporate Debtor was passed after the commencement of liquidation, we have no hesitation to hold that the claim of applicant can not be admitted in the liquidation proceedings.

Claim against demand order of EPFO passed after commencement of Liquidation cannot be admitted in the liquidation proceedings – Central Board of Trustees, Employees’ Provident Fund Vs. Mr. Bhavesh Rathod, Liquidator Ashapura Intimates Fashion Ltd. – NCLT Mumbai Bench Read Post »

Insolvency Commencement Date is prior to the date of EPFO’s Order, the action of the Resolution Professional to the reject the claim is correct in law – The Regional Provident Fund Commissioner-II Vs. Ms. Vineeta Maheshwari, IRP of Bloom Dekor Ltd. – NCLT Ahmedabad Bench

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Insolvency Commencement Date is prior to the date of EPFO’s Order, the action of the Resolution Professional to the reject the claim is correct in law – The Regional Provident Fund Commissioner-II Vs. Ms. Vineeta Maheshwari, IRP of Bloom Dekor Ltd. – NCLT Ahmedabad Bench Read Post »

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 »

Whether liability of payment of Provident Fund dues has to be borne by the Successful Resolution Applicant or it has to be deducted from the financial outlay under the Resolution Plan? – Shree Gopal Paper Mill Labour Union (Regd.) Vs. Anuj Jain RP and Ors. – NCLAT New Delhi

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Whether liability of payment of Provident Fund dues has to be borne by the Successful Resolution Applicant or it has to be deducted from the financial outlay under the Resolution Plan? – Shree Gopal Paper Mill Labour Union (Regd.) Vs. Anuj Jain RP and Ors. – NCLAT New Delhi Read Post »

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