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Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2024 (1) TMI AT This

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2024 (1) TMI 91 - AT - Insolvency and Bankruptcy


Issues involved:
The judgment involves two appeals challenging the validity of orders related to an application filed by the Regional PF Commissioner under the Insolvency and Bankruptcy Code, 2016. The issues revolve around the approval of a resolution plan and the consideration of a claim by the RP regarding EPF dues.

First Issue - Approval of Resolution Plan:
In the first appeal, the Appellant challenged the validity of an order allowing an application filed by the Resolution Professional (RP) seeking approval of the resolution plan. The Appellant contended that additional amounts assessed under Section 7 by the Assessment Officer should also be considered as part of EPF dues.

The Adjudicating Authority rejected the application on the grounds that the disputed amount did not form part of the claim in Form B. The Appellant argued that the RP and the Adjudicating Authority erred in not allowing the full claim amount of Rs. 24,61,073/-.

The Respondent's Counsel contested the Appellant's argument, stating that the disputed amount was not part of the original claim and was assessed later, beyond the timelines provided under the Code. They cited a similar case where a belated claim was rejected and upheld by the Appellate Tribunal and the Supreme Court.

After considering the arguments, the Tribunal partly allowed the first appeal, directing the Resolution Applicant to pay the statutory dues of Rs. 15,62,128/- related to the provident fund.

Second Issue - Consideration of EPF Dues:
In the second appeal, the Appellant challenged the dismissal of an application seeking direction to the RP to consider a claim of Rs. 8,98,945/- in terms of an order passed by the Assessment Officer under the EPF Act, 1952. The Appellant argued that the disputed amount should be included as part of EPF dues.

The Tribunal examined whether the amount assessed at a later date, beyond the original claim, should be considered as part of the EPF dues. The Appellant referenced a Supreme Court decision allowing the assessment of amounts for recovery as statutory dues.

Ultimately, the Tribunal dismissed the second appeal, stating that the delayed assessment of interest and penalty did not align with the timelines prescribed under the Insolvency and Bankruptcy Code. The Tribunal upheld the RP's decision to reject the additional claim amount.

This comprehensive summary highlights the key issues and details of the judgment, focusing on the challenges to the approval of the resolution plan and the consideration of EPF dues in the insolvency proceedings.

 

 

 

 

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