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TMI Blog2022 (8) TMI 417X X X X Extracts X X X X X X X X Extracts X X X X ..... of law, tribunal, arbitration panel or other authority. Section 14 of the Code does not differentiate between any proceedings, whether they are assessment, quasi-judicial or judicial in nature. In fact, a moratorium is imposed on all proceedings irrespective of the nature. The object as succinctly put by the Hon ble Supreme Court is clearly to shield the Corporate Debtor from all pecuniary attacks - In the case at hand, the proceedings initiated by the Respondent are not mere assessment proceedings as contented by the Respondent. The proceedings are legal proceedings as provided for in the circular dated 14.02.2020 issued by the Respondent, which encompass evidence to be led by parties to reach to a conclusion whether there is any amount which is due or payable under the EPF MP Act. This is also evident from a reading of provision 7A of the EPF MP Act, which describes the proceedings under the said section as judicial proceedings within the meaning of sections 193 and 228, and for the purpose of section 196, of Indian Penal Code. The benefits such as provident fund and gratuity fund are required to be protected and prioritised which is also the intent of the Code. It therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ution Professional on 22.06.2018 for an amount Rs. 47,25,682/- (Rupees Forty-Seven Lakh Twenty-Five Thousand Six Hundred and Eighty Two Only) [Refer Pg. 45/I.A No. 1694 of 2020] for the period March 2012-October 2015 and June 2015 to March 2017. The claim of the Respondents was duly admitted by the then Resolution Professional under the List of Creditors of Corporate Debtor. [Refer pg. 65/I.A No. 1694/2020.] 3. Subsequently, it is revealed that Respondent, initiated inquiry under section 7A of the EPF MP Act based on a report prepared By Enforcement Officer. The inquiry has been initiated vide notice dated 30.01.2019 for the period 04/2015 to 12/2018. The Resolution Professional, it appears has informed the Respondent about the pendency of the Corporate Insolvency Resolution Process and the imposition of moratorium under section 14 of the Code. However, despite the said intimation, Respondent has continued its proceedings and issued summons on 04.06.2019 and 02.07.2019 under section 7 A and 14B of the EPF MP Act, 1952 [Refer Pg. 81/I.A. No. 1694 of 2020] and thereafter passed orders dated 28.06.2019 passed by this Learned Adjudicating Authority, the Corporate Debtor was dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the dues from the Provident Fund, Gratuity Fund and Pension Fund and not form dues which are payable to the said Funds from the accounts of the Corporate Debtor. We need not to venture much into this submission, in view of the Judgements passed by this Adjudicating Authority, being order dated 12.09.2018 passed in the case of Precision Fasteners Ltd, through the Liquidator v. EPFO and Judgment of the Hon ble National Company Law Tribunal, being Sikendar Singh Jamwal v. Vinay Talwar Ors and State Bank of India vs Moser Baer Karamchari Union Anr in Company Appeal (AT) (Insolvency No. 396 of 2019 decided on 19.08.2019). 7. However, the question which requires consideration is the legality of impugned orders and the recovery notices issued by the Respondent and if they are issued in breach of moratorium period admittedly, during the time when moratorium was imposed by Adjudicating Authority. 8. It is seen that the Respondent, itself, on 22.06.2018, has filed a claim before the Resolution Professional amounting to the tune of Rs. 47,25,682/- (Rupees Forty-Seven lakh Twenty-Five Thousand Six Hundred and Eighty-Two Only) for a period from March 2012- October 2015 and Ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the alleged provident Fund dues are being claimed. It also has been averred that in absence of details of identified workmen and employees, no dues in the first place could exist. It has further been contended by the Applicant that only dues from the provident Fund, Gratuity Fund and Pension Fund are payable and not the dues to the said funds. 11. The purpose of imposition of a moratorium has been expounded by the Hon ble Supreme Court in the case of P. Mohanraj and Others vs. Shah Brothers Ispat Pvt. Ltd, wherein the Hon ble Supreme Court has held that the moratorium is imposed to shield the Corporate Debtor from pecuniary attacks to enable it to get a breathing space so that it can continue as a going concern to ultimately rehabilitate itself. The observations of the Hon ble Supreme Court are as follow: - While section 14(1)(a) refers to monetary liabilities of the corporate debtor, Section 14(1) (b) refers to the corporate Debtor s assets, and together, these two clauses form a scheme which shields the corporate debtor form pecuniary attacks against it in the moratorium period so that the corporate debtor gets breathing space to continue as a going concern in order to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as on the Insolvency commencement date or 14 days thereafter are required to be filed. It is for this reason the Code provides for a stop on all proceedings to enable the Resolution professional to collate all claims. A claim which is not alive on the insolvency Commencement Date, therefore cannot indirectly be permitted to be ascertained. This, if permitted, will lead to numerous proceedings being initiated against the Corporate Debtor which will frustrate the object of the Code and the completion of the Corporate Insolvency Resolution Process in a timely manner. 16. The Respondent has also contended that the dues claimed by the Respondent are social welfare dues and the actions have been taken for the benefit of the employees and workmen. However, as rightly pointed out by the Applicant, the orders do not provide the details of the employees their P.F numbers or names of these workmen against whom such dues are being claimed. The dues are required to be relatable to employees and workmen. This is also clear from section 36 of the Code, which protects the social welfare dues of the employees and workmen of the Corporate Debtor and places any amount which is due to any workmen ..... 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