All dues under the Employees’ Provident Funds & Miscellaneous Provisions Act must be fully honored within approved Resolution Plans, emphasizing priority of provident fund claims.

JUDGMENT

(13^th March, 2024) Ashok Bhushan, J.

This Appeal by Regional P.F. Commissioner has been filed challenging the order dated 11.05.2021 passed by the Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, Kolkata in IA(IB) No. 1332/KB/2020 by which order the Adjudicating Authority has allowed the application filed by the Resolution Professional for approval of the Resolution Plan.

2. Brief facts of the case necessary to be noticed for deciding this Appeal are:-

2.1. The Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor- ‘R.D. Rubber Reclaim Limited’ commenced by the order dated 25.10.2019. On 02.11.2019, public announcement was made. The Appellant- Regional P.F. Commissioner submitted its claim on 28.08.2020 for Rs.1,02,84,785/- under Section 7A , Rs.75,62,576/- under Section 7Q and Rs.1,05,63,927/- under Section 14B of the Employees’ Provident Funds & Miscellaneous Provisions Act 1952 (hereinafter referred to as “1952 Act”). The Resolution Professional admitted the entire amount claimed under Sections 7A , 7Q and 14B which was communicated to the Resolution Professional vide letter dated 28.08.2020. The Resolution Plan was submitted by Resolution Applicant which was approved by the Committee of Creditors (CoC) with 100% vote share on 06.11.2020. The Resolution Professional filed an application before the Adjudicating Authority for approval of the plan which Resolution Plan has been approved by order dated 11.05.2021 and under the Resolution Plan, the amount proposed to be paid to the Appellant as Rs.1,02,84,785/- i.e. the amount which was claimed under Section 7A . With regard to amount claimed under Sections 7Q and 14B, no payment was proposed. In paragraph 15, the Adjudicating Authority has noticed the details of the amount claimed, amount admitted and the amount proposed to be paid in the plan. Appellant aggrieved by the order dated 11.05.2021 passed by the Adjudicating Authority approving the Resolution Plan in which only amount proposed was amount under Section 7A has come up in this Appeal.

2.2. Notices were issued on 14.03.2022 in this Appeal noticing the submission of the Appellant which order is as follows:-

“14.03.2022: Learned Counsel for the Appellant submits that although Amount under Section 7A of the EPF Act has been paid. The Amount as determined under Section 7Q and 14B has not been paid in the Resolution Plan. He submits that he was entitled for entire payment which was also admitted by the IRP.

2. Issue Notice. Learned Counsel for the Respondent appears and accepts notice. Respondent to file Reply- Affidavit within two weeks. Rejoinder, if any, may be filed within two weeks, thereafter.

List this Appeal ‘For Admission (After Notice)’ on 12th April, 2022.”

2.3. A reply has been filed by the Resolution Professional as well as the Successful Resolution Applicant.

3. We have heard Shri B.B. Pradhan, Learned Counsel for the Appellant, Ms. Surbhi Anand, Learned Counsel appearing for the Respondent No.1- Resolution Professional, Shri Shatadru Chakraborty, Learned Counsel appearing for the Respondent No.2 and Shri Sunil Choudhary, Learned Counsel for the Respondent No.3 and Counsel appearing for the CoC.

4. Learned Counsel for the Appellant submits that when the Appellant filed its claim under Sections 7A , 7Q and 14B, the entire amount towards provident fund dues were required to be paid. It is submitted that the claim which was entitled to be paid first and there can be no denial of the amount.

It is submitted that the issue is well settled by this Tribunal in “ Jet Aircraft Maintenance Enginee