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TMI Blog2024 (3) TMI 1291X X X X Extracts X X X X X X X X Extracts X X X X ..... ofessional for approval of the Resolution Plan. 2. Brief facts of the case necessary to be noticed for deciding this Appeal are:- 2.1. The Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor- 'R.D. Rubber Reclaim Limited' commenced by the order dated 25.10.2019. On 02.11.2019, public announcement was made. The Appellant- Regional P.F. Commissioner submitted its claim on 28.08.2020 for Rs.1,02,84,785/- under Section 7A, Rs.75,62,576/- under Section 7Q and Rs.1,05,63,927/- under Section 14B of the Employees' Provident Funds & Miscellaneous Provisions Act 1952 (hereinafter referred to as "1952 Act"). The Resolution Professional admitted the entire amount claimed under Sections 7A, 7Q and 14B which was communicated to the Resolution Professional vide letter dated 28.08.2020. The Resolution Plan was submitted by Resolution Applicant which was approved by the Committee of Creditors (CoC) with 100% vote share on 06.11.2020. The Resolution Professional filed an application before the Adjudicating Authority for approval of the plan which Resolution Plan has been approved by order dated 11.05.2021 and under the Resolution Plan, the amount proposed to be paid to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in "Maharashtra State Cooperative Bank Limited vs. Assistant Provident Fund Commissioner and Others- (2009) 10 SCC 123". Learned Counsel for the Appellant has also relied a judgment of the Chennai Bench of this Tribunal in "Mrs. C.G. Vijyalakshmi vs. Shri Kumar Ranjan, Resolution Professional and Ors.- Company Appeal (AT) (CH) (Ins.) No.29 of 2021" decided on 08.02.2023. 5. Learned Counsel for the Resolution Professional refuting the submissions of the Counsel for the Appellant submits that the Appellant has filed this Appeal only on 21.02.2022 against the order dated 11.05.2021 i.e. more than 9 months from passing of the order. It is submitted that the Resolution Plan has already been implemented and the amount payable to the Appellant under Resolution Plan has already been paid which has been accepted by the Appellant. The amount claimed by the Appellant under Section 7A has been 100% paid. Payments to all stakeholders have been made and plan have been fully implemented and the Respondent No.1 has no role to play. On 02.02.2022, implementation report has already been sent to the CoC. 6. Learned Counsel for the Successful Resolution Applicant (SRA) also submits that the entire a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id in full. However, no payment has been made towards amount claimed under Section 7Q and Section 14B. 10. Learned Counsel for the Appellant submitted that the amounts under Section 7Q and Section 14B also form part of the amount due from the employer. He has relied on the judgment of the Hon'ble Supreme Court in "Maharashtra State Cooperative Bank Limited" (supra) where the Hon'ble Supreme Court after noticing the provisions of Sections 7Q and 14B has held that the amounts claimed under Section 7Q and Section 14B are amounts which have priority of payment under Section 11 of the Employees' Provident Funds & Miscellaneous Provisions Act 1952. We, thus, are of the clear view that all the amounts claimed by the Appellant under Sections 7A, 7Q and 14B were part of provident fund dues. 11. Learned Counsel for the Appellant has relied on the judgment of this Tribunal in "Jet Aircraft Maintenance Engineers Welfare Association" (supra) where it was held that the PF dues of the employees have to be paid in full and one of the Appeals which was considered in the judgment was Company Appeal (AT) (Insolvency) No. 987 of 2022 filed by the Regional Provident Fund Commissioner which Appeal was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 30.01.2023, which is the law of the land and is binding on all 'Courts' & 'Tribunals' of India. 30. Accordingly, these `Appeals' are `allowed' in `part', to the extent indicated supra. The connected pending `Interlocutory Applications', if any, are closed." 13. Claim of the Appellant submitted under Sections 7A, 7Q and 14B having been admitted, we are of the view that the Appellant's entire claim require consideration and payments in the Resolution Plan. 14. Learned Counsel for the SRA submitted that their plan has already been implemented and all employees and workmen have been allowed to work in the SRA. It is submitted that the Appeal was filed after 9 months from the order and on the date when the Appeal was filed, the entire plan was already implemented and at this stage, if SRA is directed to make the entire payment running company may have to be closed. SRA submitted that in any view of the matter the SRA has already paid the entire dues under Section 7A which was the dues of the provident fund, the damages under Section 14B are not to be recovered and the SRA be exempted from payment of the said amount under Section 14B. 15. We have occasion to consider the si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der of this Tribunal may pray to the Central Board to waive 100 percent damages of Rs. 31,16,446 imposed by Order dated 25th July, 2017 under Section 14B which step to be taken by SRA within a period of one month from today. We grant liberty to both the parties to make an appropriate application in this Appeal, if any, occasion arises for any further order with regard to wavier as recommended herein. We thus are of the view that no direction need to be issued for payment of damages of Rs. 99,71,315/- which was imposed under Section 14B for reasons indicated above." 16. This Tribunal ultimate directions in paragraph 18(i) (c) permitted the SRA to make an application to Central Board for waiver of 100 per cent damages along with the copy of the order. In the facts of the present case, we are inclined to grant liberty to SRA to make an application to the Central Board for waiver of the amount of damages under Section 14B as provided in Section 14B of the 1952 Act. 17. Now coming to another part of the claim which was admitted in the CIRP i.e. amount under Section 7Q amounting to Rs.75,62,576/-. We are of the view that the said amount is required to be paid by SRA to the Appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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