NCLT Mumbai: PF/Gratuity Due Prioritized in Liquidation

Anuj Bajpai Vs Employee Provident Fund Organisation (NCLT Mumbai) The National Company Law Tribunal (NCLT) Mumbai has provided a significant clarification regarding the priority of Provident Fund (PF) and Gratuity dues in the liquidation process. The court ruled that these dues are third-party assets belonging to workers and should be paid with priority in resolution or liquidation without following the distribution process under Section 53 of the Insolvency and Bankruptcy Code (IBC). This decision has implications for the treatment of workers’ dues during the liquidation process and has...