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TMI Blog2022 (9) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the pendency of this Application they have submitted their claim and it is totally admitted. The Counsel for the Respondent No. 2 however submits that the employees have to be given preference in respect of the distribution of the assets of the CD. Section 53 (1)(b)(i) of IBC, 2016. In view of the IBC carving out a preference for the employees dues and the Government dues and in view of the fact that the claims of GST and EPFO were totally admitted, the prohibitory orders dated 19.02.2020 and 07.03.2022 issued by the respective departments to the Axis Bank are liable to be set-aside. Appeal allowed. - IA (IBC) No. 71 of 2022 in CP (IB) No. 204/7/AMR/2019 - - - Dated:- 24-8-2022 - Telaprolu Rajani, J. (Member (J)) For th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... put an attachment towards its dues of Rs. 1,22,96,617/-. c) The Respondent No. 1 has issued Form GST DRC 13 and created a lien on aforesaid bank account of the CD and issued notice under Section 79 of the GST Act upon the Axis Bank in Form GST DRC 13 dated 17.02.2020, seeking recovery of sums due from the CD. Respondent No. 1 once again issued revised notice under Section 79 of GST Act dated 06.03.2020. d) Further Respondent No. 2/EPFO has also issued Prohibitory Order dated 19.02.2020 and 07.03.2022 under Section 8B/8F of the Employees Provident Fund and Miscellaneous Provision Act, 1952 to Axis Bank requesting to pay the default amount, e) The settled position of law is that no recovery proceedings nor any recovery action be init ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Legislature for the time being in force, the proceeds from the sale of the liquidation assets shall be distributed in the following order of priority and within such period and in such manner as may be specified, namely:-- (b) the following debts which shall rank equally between and among the following:-- (i) workmen's dues for the period of twenty-four months preceding the liquidation commencement date; So far as, the Government dues are concerned, there is preference given to them under the same section of law under Clause (e) (i) of Section 53 of IBC which is as follows: (e) the following dues shall rank equally between and among the following:-- (i) any amount due to the Central Government and the State Go ..... X X X X Extracts X X X X X X X X Extracts X X X X
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