Claims for statutory dues must be submitted before the commencement of liquidation; assessments thereafter are inadmissible under insolvency laws.

JUDGEMENT

1. This Interlocutory Application is filed on 05.05.2025, under Section 60 (5) of the Insolvency and Bankruptcy Code, 2016 (the IB Code, 2016), read with Rule 11 of the National Company Law Tribunal Rules, 2016 (the NCLT Rules, 2016) by the Assistant Provident Fund Commissioner, EPFO, Gwalior (the Applicant) against Mr Anil Agrawal (the Respondent), Liquidator of M/s STL Exports Pvt. Ltd. (the Corporate Debtor).

2. Through this present Application, the Applicant seeks following directions given below:

a) To direct the Respondent/Liquidator to forthwith admit and accept the statutory claim of the Applicant towards provident fund dues amounting Date of Order: 10.12.2025 to Rs. 44,10,204/- (Rupees Forty-Four Lakh Ten Thousand Two Hundred and Four only), together with Damages and accrued statutory Interest until realization.

b) To declare that the PF dues constitute a statutory first charge over the assets of the CD and stand excluded from the liquidation estate.

c) To direct the Respondent/Liquidator to earmark and disburse the aforesaid PF dues, along with Damages and accrued statutory Interest, on a priority and prior to any distribution of proceeds under Section 53 of the IB Code, 2016.

d) To restrain the Respondent/Liquidator from effecting any distribution of the proceeds or assets of the CD to any other creditors or stakeholders until the statutory provident fund dues, along with Damages and interest, are fully paid and discharged.

e) To pass an order Condoning any procedural delays, if any, in filing or adjudication of the present Application, in the interest of justice and equity.

3. The Applicant’s case in brief is:

a) The Applicant submits that Shri Vivek Kumar Gupta, Assistant Provident Fund Commissioner, EPFO, Regional Office, Gwalior was duly authorised to file the present application.

(Copy of the resolution passed by CBT dated 25.05.1989 is annexed and marked as ANNEXURE A1 to the Application.)

b) The Applicant submits that in IA No. 186 (MP) 2021 in TP 174 of 2019 (CP (IB) 426 of 2018), this Adjudicating Authority, passed a liquidation order dated 11.08.2023 under Section 33 (2) of the IB Code, 2016 and Date of Order: 10.12.2025 appointed the Respondent as the Liquidator.

c) The Applicant submits that the EPF dues constitute statutory liabilities and not contractual debts. Hence, Provident Fund, Gratuity, and Pension Fund dues stand excluded from the liquidation estate in terms of Section 36 of the IB Code, 2016, and are not governed by the IBBI (Liquidation Process) Regulations, 2016.

d) The Applicant submits that, if any procedural delay is observed in filing or updating the claim, this Adjudicating Authority may be pleased to condone the same, the delay having occurred due to assessment proceedings and procedural difficulties.

e) The Applicant submits that the PF dues are statutory in nature, protected under the Employees Provident Funds & Miscellaneous Provisions Act, 1952 (the EPF & MP Act, 1952), enacted to ensure social security to employees. It further submits that any minor and unintentional procedural delay ought not to defeat substantive justice or prejudice the employees legitimate statutory entitlements, who depend upon these funds for their welfare and livelihood.

f) The Applicant submits that the EPFO is a social security organization governed by its own Act, the EPF & MP Act, 1952. The Corporate Debtor/CD is covered under the EPF & MP Act, 1952 and allotted EPF Code No. MP/GWL/0010922000. The CD was legally obligated to Date of Order: 10.12.2025 comply with the EPF & MP Act, 1952 and its Schemes by timely remitting dues and submitting returns si