Employees’ Provident Fund Organization Regional Office Vs Jaykumar Pesumal Arlani (NCLAT Delhi)
NCLAT Delhi held that after initiation of moratorium under section 14(1) of the Insolvency and Bankruptcy Code, 2016 [IBC], no assessment proceedings can be continued by EPFO. Accordingly, appeal dismissed.
Facts- The Corporate Insolvency Resolution Process against the Corporate Debtor – Decent Laminate Pvt. Ltd. Commenced after an order dated 03.05.2021 passed by NCLT, Ahmedabad Bench.
The Appellant initiated proceedings u/s. 7A of the Employees’ Provident Fund & Misc. Provisions Act, 1952. On 22.06.2022, summon was issued u/s. 7A with copy to Interim Resolution Professional. The IRP appeared and informed that he does not have relevant records. On 09.05.2023, summons were again issued to the Establishment u/s. 14B & 7Q of the EPF & MP Act to show cause as to why damages u/s. 14B and interest u/s. 7Q of the Act may not be levied and recovered.
On 11.05.2023, the claim of Rs.76,09,494/- was submitted before the IRP. On 16.08.2023, order was passed u/s. 14B and 7Q. On 31.08.2023, a revised claim of Rs.1,58,90,685/- was submitted. On 05.09.2023, RP replied that claim cannot be considered as the Plan has been approved by the Committee of Creditors. Adjudicating Authority rejected the appeal. Being aggrieved, the present appeal is filed.
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