After initiation of moratorium under Section 14(1) of IBC, no assessment proceedings can be continued | After an order of liquidation is passed, Section 33(5) of IBC does not prohibit initiation or continuation of assessment proceedings | No claim on the basis of assessment carried during the moratorium under Section 14(1) of IBC can be admitted in the CIRP – Employees’ Provident Fund Vs. Jaykumar Pesumal Arlani RP of Decent Laminates Pvt. Ltd. – NCLAT New Delhi
This judgment answers the questions:
(i) Whether after imposition of moratorium under Section 14 of the IBC, assessment proceedings can be carried on by the EPFO under Section 7A, 14B and 7Q of the EPF & MP Act, 1952.
(ii) Whether any claim on the basis of assessment, subsequent to imposition of moratorium, can be admitted in the CIRP.
(iii) Whether claims, which were filed by the Appellant(s), subsequent to the approval of Resolution Plan by the CoC, could have been admitted in the CIRP.
And covers:
A. Judicial Precedents
B. Ratio of a judgment cannot be read as statute
C. Interpretation of Section 14(1)(a) of IBC
D. Whether after moratorium has been imposed, it is open for EPFO to proceed with the assessment proceeding
E. Whether claims filed subsequent to the approval of Resolution Plan by the CoC, could have been admitted in the CIRP