NATIONAL COMPANY LAW TRIBUNAL

COURT ROOM NO. 1,

MUMBAI BENCH

Item No. 21

IA (I.B.C)/3762(MB)2025 IN C.P. (IB)/1318(MB)2022

CORAM:

SH. PRABHAT KUMAR SH. SUSHIL MAHADEORAO KOCHEY HON’BLE MEMBER (TECHNICAL) HON’BLE MEMBER (JUDICIAL)

ORDER SHEET OF THE HEARING ON 02.12.2025

NAME OF THE PARTIES: AXIS BANK LIMITED V/s MORARJEE

TEXTILES LIMITED

Section 7, 30 & 60(5) of the Insolvency and Bankruptcy Code, 2016

________________________________________________________________

ORDER

IA (I.B.C)/3762(MB)2025

1. Adv. Dhrupad Vaghani a/w Adv. Ajit M.K. for the Applicant/Resolution

Professional present. Adv. Malini Rai for EPFO Respondent present.

2. This Application has been filed by Mr. Ravi Sethia as Resolution

Professional of Morarjee Textiles Limited under the Provisions of Section 60(5) of the Insolvency and Bankruptcy Code, 2016 seeking following

reliefs: -

a. Quash and set aside the Order dated 15^th July 2025 passed by the

Respondent (Nagpur Division) under Section 7A of the EPF Act;

b. Pass appropriate orders for treatment of the claim pertaining to the

order dated 24^th December 2024 passed by the Respondent (Mumbai

Division) pursuant to the order passed by the Hon’ble NCLAT;

c. Pass such order’s and/or direction’s in the interest of justice which

this Hon’ble Tribunal deems.

3. This Tribunal vide an order dated 9th February 2024 (“Admission Order”)

initiated Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor under the Insolvency and Bankruptcy Code (“IBC/Code”) and appointed Mr. Ravi Sethia as the interim resolution professional (“IRP”) of the Corporate Debtor and was later on confirmed as Resolution Professional.

4. During the CIRP of the Corporate Debtor, the Applicant was in receipt of summons bearing No. NG/NAG/61948/7A Nagpur Compliance/1324 dated 20^th March 2025 for initiating the proceedings under Section 7A of the EPF Act for a period of August 2024 to February 2025 (“Assessment Period”) from the Respondent (Nagpur Division).

5. Vide an Additional Affidavit, the Applicant had apprised the Assessing Officer about the order dated 3^rd January 2025 in the matter of Employees Provident Fund Vs Jaykumar Pesumal Arlani Resolution Professional of M/s. Decent Laminates Pvt. Ltd (Company Appeal (AT) (Insolvency) No. 1062 of 2024), where the National Company Law Appellate Tribunal (“NCLAT”) has held that upon imposition of moratorium under Section 14 of the Code, no assessment proceedings could continue against the Corporate Debtor. Vide an Order dated 15^th July 2025, Respondent (Nagpur 7 Division) passed an order under Section 7A of the EPF Act for a period of August 2024 to February 2025 which is during the CIRP of the Corporate Debtor.

6. The Applicant further submits that prior to the order of the NCLAT, the Applicant was in receipt of receipt of a Summons dated 29^th November 2024 for the period of March 2023 to June 2024 from Respondent (Mumbai Division). In this regard, the Respondent (Mumbai Division) passed an order dated 24th December 2024 (“24th December Order”) wherein the Respondent directed the Corporate Debtor to pay a sum of Rs. 20,25,380/-

(Rupees Twenty lakh Twenty-Five Thousand Three Hundred Eighty Only).

7. Ld. Counsel for the Applicant/Resolution Professional informs that the amounts claimed in the order passed under Section 7A of EPF Act, though the said order has been passed after commencement of the CIRP, have already been provided for as CIRP costs and the claim of the EPF Department of that extent has already been admitted. Further, it was submitted that the claim of PF dues raised by PF Department (Mumbai Division) has been admitted as pre-CIRP dues. Ld. Counsel for the applicant presses for quashing of the said orders on the ground that in case of the order are not quashed, the Respondent department may proceed to determine further liability in relation to interest and damages on that amount, which if so determined, shall be contrary to decision of Hon’ble NCLAT in case of Jaykumar Pesumal Arlani (Supra