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In the insolvency proceedings, Employees Provident Fund dues have been a point of major concern. While workers have been demanding their Provident Fund dues, the stand of the Resolutions Applicants has been that the EPF dues should be extinguished. This issue came up in the matter of Jet Aircraft Maintenance Engineers Welfare Association Vs. Ashish Chhawchharia Resolution Professional of Jet Airways (India) Ltd. And Ors. 2022 SCC OnLine NCLAT 418, wherein it was held that Provident Fund dues are to be paid in full.

While the rights of the workmen were protected but it left the Resolution Applicants exposed to the major demands from the Provident Fund Department. Now, a Judgment has been passed in the matter of Regional Provident Fund Commissioner V/S Shri Manish Kumar Bhagat, Company Appeal (AT) (Insolvency) No. 808 of 2022 which has addressed various points and sought to even the balance.

In respect of damages, the NCLAT has held that the Central Board of Employees Provident Fund Organisation can reduce or waive the damages imposed under Section 14B of the Employees Provident Fund Act, 1952. It is further held that no damages can be imposed after the enforcement of moratorium under the Insolvency Code. In respect of the principal and interest components under Section 7A and 7Q of the EPF Act, the NCLAT has held that the amount already paid to the workman towards EPF dues in the Resolution Plan needs to be deducted and only the balance amount is required to be paid to the EPF Authorities as against the admitted claim towards 7A and 7Q of the Employees Provident Fund Act, 1952.

This matter was argued by Mr. Arvind Kumar Gupta. 

I am  enclosing herewith the Judgment passed by Hon’ble NCLAT. 

Purti Marwaha Gupta, Advocate 

Bar Council Enrolment No. D/606/2000

Advocate on Record, Supreme Court of India