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TMI Blog2022 (6) TMI 496X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - IA/818/IB/2020 in CP/1226/IB/2018 - - - Dated:- 2-6-2022 - Sucharitha R. , Member ( J ) And Sameer Kakar , Member ( T ) For the Appellant : P. K. Paneer Selvam , Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the no proceedings under Section 7A was found in the claim form and hence the Liquidator has requested the Applicant to submit the necessary documents by email. Thereafter, it is seen that Applicant has filed a revised claim before the Liquidator on 24.02.2020 for a sum of Rs. 28,43,387/-, which is segregated as follows; (i) Dues towards PF and allied dues under 7A of the insolvency Employees Provident Fund Provision Act 1952 has been assessed for the period from 01/2014 to 03/2015 for Rs. 14,55,873/-. The establishment remitted Rs. 5,14,251/- and balance Rs. 9,41,622/-. (ii) Dues towards PF and allied dues under 7A of the Employees Provident Fund Miscellaneous Provision Act 1952 has been assessed provisionally for the period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... table. e) Please refer to the judgment of the High court of Ernakulam WPC 1399 of 2006(N) no payment u/s. 140 shall be chargeable for the CD. f) Regarding the NCLAT company appeal No. 354 of 2019, the same is applicable for the resolution plan. RL logistics is now under liquidation. Hence the judgment of NCLAT Company Appeal (AT) No. 2019 will only apply in this case. g) Regarding payment to EPFO, as the Corporate Debtor had failed to create a separate fund for EPF dues, the waterfall mechanism under Section 53 will be followed. You were given an opportunity to resubmit your claim and you are insisting your claim amount as Rs. 28,43,387/- Under the above circumstances, I, in my capacity as Liquidator of the Corporat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. In so far as the contention of the Learned Counsel for the Respondent that the claim for Penal damages and Interest under Section 14B and 7Q of the EPF Act, 1952 would be covered under the waterfall mechanism, the same is required to be negated since the Hon'ble NCLAT in the matter of Regional Provident Fund Commissioner Ahmedabad Vs. Ramachandra D. Choudhry in Company Appeal (AT)(Insolvency) No. 1001 of 2019 while answering the question as to whether PF authorities are entitled to a claim of interest charged by the said authority during the course of CIRP of the corporate debtor, in addition to the principal amount of provident fund due which has been fully taken care of in the approved Resolution Plan, negating the contention of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred under Section 15(2) or any other charges payable by him under any other provision of this Act or of any provision of the Scheme or the Insurance Scheme. Clause (b) is applicable to cases where the amount is due from the employer in relation to exempted establishment in respect of any contribution to the provident fund or any insurance fund in so far it relates to exempted employees under the rules of provident fund or any insurance fund, any contribution payable by him towards the Pension Fund under Section 17(6), damages recoverable under Section 14B or any charges payable by him to the appropriate Government under the Act or under any of the conditions specified in Section 17. This sub-section then lays down that such amount shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laims of the secured and/or of the unsecured creditors. While enacting sub-section (2), the legislature was conscious of the fact that in terms of existing Section 11 priority has been given to the amount due from an employer in relation to an establishment to which any scheme or fund is applicable including damages recoverable under Section 14B and accumulations required to be transferred under Section 15(2). The legislature was also aware that in case of delay the employer is statutorily responsible to pay interest in terms of Section 17. Therefore, there is no plausible reason to give a restricted meaning to the expression 'any amount due from the employer' and confine it to the amount determined under Section 7A or the contribut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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