9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (11) TMI 403 - AT - Insolvency and BankruptcyApproval of Resolution plan - non-payment of the full amount of Provident Fund Dues - violation of provision of Section 30(2)(e) - Time limitation - HELD THAT - The facts of the present case are fully covered by the Judgement in JET AIRCRAFT MAINTENANCE ENGINEERS WELFARE ASSOCIATION VERSUS ASHISH CHHAWCHHARIA RESOLUTION PROFESSIONAL OF JET AIRWAYS (INDIA) LTD. ORS; ASSOCIATION OF AGGRIEVED WORKMEN OF JET AIRWAYS (INDIA) LTD. VERSUS JET AIRWAYS (INDIA) LTD. ORS. 2022 (11) TMI 332 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, PRINCIPAL BENCH, NEW DELHI . The above Appeal had been allowed and direction has been issued to Successful Resolution Applicant (SRA) to make the payment of Provident Funds dues in full. The submissions of Learned Counsel for the Respondent that Appeal is barred by time, cannot be accepted. The Appeal has been filed on 28th February, 2022 against the Order dated 3rd January, 2022. The Judgement of the Hon ble Supreme Court in 2022 (1) TMI 385 - SC ORDER extended the period of limitation till 28th February, 2022 for all Appeals and has further granted 90 days time to file the Appeal. The present Appeal is fully covered by the Judgment of the Hon ble Supreme Court in 2022 (1) TMI 385 - SC ORDER extending the period of limitation as afore-noted. Thus objection of the Respondent regarding limitation cannot be accepted. Submission of Learned Counsel for the Respondent that Appellant is an Operational Creditor and both Operational Creditor and Financial Creditor has taken haircut, also cannot be accepted. As held by this Tribunal in above case Jet Airways provident fund dues are not the assets of the Corporate Debtor and they have to be paid in full. Hence, the Appellant was clearly entitled for payment of full provident fund dues i.e. an amount of Rs. 2,10,13,798/-. Ends of Justice will be served in issuing direction to Successful Resolution Applicant to make the payment of balance amount of Provident Fund to the Appellant to save the Resolution Plan from invalidity - this Appeal is disposed off by directing the Respondent to make payment of balance amount of Provident Fund i.e. Rs. 1,02,92,206/-.
Issues Involved:
Challenge to the National Company Law Tribunal's order regarding the payment of provident fund dues in a Corporate Insolvency Resolution Process (CIRP) case. Detailed Analysis: Issue 1: Challenge to the Order of the National Company Law Tribunal The appeal challenges the order passed by the National Company Law Tribunal, Kolkata Bench, initiating the Corporate Insolvency Resolution Process against the Corporate Debtor-HAIL Tea Limited. The Resolution Professional admitted the claim of the Appellant-Organization for an amount of Rs. 2,10,13,797.92. However, the Resolution Plan proposed by Respondent No. 2 approved by the Tribunal offered only Rs. 1,07,21,592 to the Appellant. The Appellant contended that the full amount of provident fund dues should have been paid as per Section 30(2)(e) and Section 11(2) of the EPF Act, 1952. Issue 2: Timeliness of the Appeal The Respondents argued that the appeal was time-barred as it was filed on 28th February, 2022, challenging an order dated 3rd January, 2022, beyond the 30-day limitation period. However, the Tribunal considered the extension of the limitation period granted by the Supreme Court in Suo Moto Writ Petition No. 03/2022, allowing the appeal to proceed within the extended timeline. Issue 3: Treatment of Provident Fund Dues in Resolution Plans The Tribunal referred to a previous judgment in Company Appeal (AT) Ins. No. 987/2022 regarding the treatment of provident fund dues in resolution plans. The judgment emphasized that provident fund dues are entitled to be paid in full as they hold priority under Section 11 of the EPF Act, 1952. The Tribunal highlighted the importance of satisfying provident fund dues to prevent a breach of Section 30(2)(e) and directed the Successful Resolution Applicant to make full payment of the admitted claim towards provident fund dues to uphold the validity of the plan. Conclusion: The Tribunal allowed the appeal to the extent that the Successful Resolution Applicant was directed to make the payment of the balance amount of provident fund dues, totaling Rs. 1,02,92,206, to the Appellant. The judgment underscored the significance of honoring provident fund dues in resolution plans to ensure compliance with legal provisions and prevent plan invalidity.
|
