EPFO Dues Arising From Post-Liquidation Assessments U/S 7A Of EPF Act Are Not Admissible: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical), has held that the EPFO dues arising from the post-liquidation assessment under section 7A of the EPF Act are not admissible. The CIRP of the corporate debtor was ordered on 30.11.2017, and its liquidation was ordered on 16.09.2019. The appellant conducted the inquiry u/s 7A of the EPF Act, 1952, on 11.10.2021 and determined the PF dues of Rs. 16,876,185. Thereafter, the appellant submitted its claim of Rs. 45,713,010/- (inclusive of damages and interest as per sections 14B and 7Q of the EPF Act) before the liquidator. However, the liquidator rejected the claim of the appellant, citing violation of moratorium. The appellant filed an application before the NCLT seeking admission of its claim, but the same was rejected by the NCLT. Hence, the present appeal has been preferred. Contention of the Parties The appellant submitted the dues determined by it on 11.10.2021, which were the dues prior to initiation of the CIRP, and under section 36(4) of the IBC, it is the duty of the liquidator to pay it. Per contra, the respondent submitted that the assessment u/s 7A was made after the liquidation commencement date, but the liquidation proceedings allow to admit only those claims that were in existence at the time of liquidation commencement. It also submitted that the auction was complete and the corporate debtor was sold as a going concern. Also, the liquidator has filed the application for closure of liquidation, which is pending. It highlighted that the appellant filed its claim two years later than the prescribed last date; hence, the liquidator rejected the claim. And the appellant failed to prefer the appeal under section 42 of the IBC. For its submission the respondent relied on the ruling of “Employees' Provident Fund Organisation, Nashik v. Girish Siriram Juneja & Anr. (CA (AT) INS No. 693 of 2025 & I.A. No. 2676 of 2025).” Observations of the NCLAT The NCLAT observed that Regulation 16(2) of the IBBI Regulations, 2016, lays down that only those claims can be admitted that were existing at the time of the liquidation commencement date. However, the assessment of the EPFO claim was made after the liquidation; hence, the claims were not in existence at the time of liquidation and are therefore inadmissible. The bench observed that the respondent has rightly relied on the ruling of “Employees' Provident Fund Organisation, Nashik v. Girish Siriram Juneja & Anr (supra). In that case, a claim based on an order passed u/s 7Q and 14B was filed subsequent to the liquidation commencement date, and the adjudicating authority rejected the claim, which was also affirmed by this tribunal. The tribunal lastly made it clear that the non-admission of the claim does not restrict the appellant from taking other available remedies under the law for the realization of its claim. The NCLAT upheld the decision of the adjudicating authority and dismissed the appeal. Case Name: he Regional P.F. Commissioner, Employees' Provident Fund Organization v. Alok Kailash Saksena Liquidator of Gujarat Foils Case No.: Company Appeal (AT) (Insolvency) No. 807 of 2025 Bench: Justice Ashok Bhushan (Chairperson) and Barun Mitra (Member-Technical) Judgment Date: 29.08.2025 Click Here To Read/Download The Order

EPFO Dues Arising From Post-Liquidation Assessments U/S 7A Of EPF Act Are Not Admissible: NCLAT New Delhi

Mohd.Rehan Ali

Tags