Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2022 (8) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (8) TMI 879 - Tri - Insolvency and BankruptcyLifting of lien from the account belonging to the Corporate Debtor - whether the amount of Rs. 62,24,082/- and also the subsequent demands arising out of the proceedings under the EPF and MP Act, 1952 are recoverable from the corporate debtor? - Section 8F of EPF & MP Act, 1952 - HELD THAT:- The records indicate that an enquiry under section 14B/7Q of the EPF and MP Act, 1952 was concluded and demand of 62,24,082/- was issued against the Establishment for the dues for the period from 09-02-2018 to 20-12-2019 and also for failure to deposit the PF amount. This amount also included damages under Section 14-B and interest under section 7Q of the Act. As the same was not deposited in time by the establishment, an attachment order under Section 8F was issued on 02.07.2019 to Kotak Mahindra Bank., which in turn marked a lien for Rs. 62,24,082/- but did not deposit the amount with the office of the EPFO - it is a settled issue that when it comes to non-payment of the EPF arrears by the Corporate Debtor the issue is one of "compliance of Law". As clarified in the extracts, all the dues raised by the EPFO under various sections, including interests and penalties are to be paid by the new establishment under Section 17B of the Employees Provident Funds and Miscellaneous Act, 1952. Furthermore, under Section 30(2)(e) of the Resolution Plan, in order to be legitimate, the resolution plan cannot contravene any of the provisions of any law in force. Thus, in the present context, it is incumbent on the RP/SRA to ensure that Section 17B of the EPF and MP Act, 1952 are complied with. As mentioned, Section 17B lays down that in case of a transfer of Establishment, the person to whom the establishment is transferred is liable to pay the contributions and other sums due from the employer under any provision of the EPF and MP Act, 1952. Thus, the amount of Rs. 62,24,082/- demanded by the authorised officer of EPFO by letter dated 13.06.2019 and served on the Kotak Mahindra Bank on 05.07.2019 to be fully complied. The applicant's prayer to lift the lien from the account bearing No. 1211116245 belonging to the Corporate Debtor for an amount of Rs. 62,24,082/-, which was imposed in view of the order dated 02.07.2019 passed by respondent No. 2 i.e. Authorised Officer of the EPFO cannot be acceded to - Application dismissed.
|