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2022 (6) TMI 496 - Insolvency & Bankruptcy
Head Note / Extract:
CIRP - resolution plan - claim of priority over other creditors - PF and allied dues, including interest of the employees - Rejection of revised claim - seeking direction to Respondents to pay off the revised claim of the Applicant on first priority from and out of the liquidation assets/estate of the Respondents - HELD THAT:- Any penal damages and interest levied by the PF Authorities under Section 14B & 7Q of the EPF & Miscellaneous Act, 1952 would form part of "any amount due" under Section 11(2) of EPF & Miscellaneous Act, 1952. Under the said circumstances, the contention of the Learned Counsel for the Respondent that the Penal damages and Interest under Section 14B and 7Q of the EPF & Miscellaneous Act 1952 levied by the Applicant, should be covered under the waterfall mechanism, goes against the well-established position of law. The PF authorities are entitled to the satisfaction of the full claim in relation to the PF dues including interest. Further, it is to be taken note that the entire amount of Rs. 28,43,387/- do not form part of the Liquidation estate - Application disposed off.