Provident fund dues under Section 7Q must be paid in a resolution plan, while Section 14B damages may be considered for waiver.

Amounts admitted under Section 7Q of the Employees' Provident Funds & Miscellaneous Provisions Act formed part of provident fund dues and were required to be honoured in the resolution plan; the successful resolution applicant was directed to pay them. Damages under Section 14B were treated separately from ordinary provident fund dues, and the Tribunal preserved the route of seeking waiver before the Central Board rather than issuing an unconditional direction for immediate payment. The resolution plan was otherwise substantially sustained, with statutory provident fund liabilities protected and Section 14B damages left open for waiver consideration.

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Issues: (i) Whether the amount admitted under Section 7Q of the Employees' Provident Funds & Miscellaneous Provisions Act 1952 was required to be paid in the resolution plan as part of provident fund dues; (ii) Whether the admitted damages under Section 14B of the Employees' Provident Funds & Miscellaneous Provisions Act 1952 could be directed to be paid in full or whether liberty could be granted to seek waiver.

Issue (i): Whether the amount admitted under Section 7Q of the Employees' Provident Funds & Miscellaneous Provisions Act 1952 was required to be paid in the resolution plan as part of provident fund dues

Analysis: The admitted claim comprised amounts under Sections 7A, 7Q and 14B. The amount under Section 7A had already been paid, but the amount under Section 7Q remained unpaid. The Tribunal treated the provident fund-related liabilities as part of the employer's statutory dues and relied on the settled position that amounts payable under Section 7Q form part of provident fund dues and are entitled to priority under the statutory scheme.

Conclusion: The amount admitted under Section 7Q was held payable by the successful resolution applicant.

Issue (ii): Whether the admitted damages under Section 14B of the Employees' Provident Funds & Miscellaneous Provisions Act 1952 could be directed to be paid in full or whether liberty could be granted to seek waiver

Analysis: The Tribunal noted that damages under Section 14B stand on a different footing from ordinary provident fund dues and referred to its earlier view that the competent authority may consider waiver of such damages under the statutory scheme. In the circumstances of the implemented resolution plan, the Tribunal considered it appropriate not to issue an unconditional direction for immediate payment of the Section 14B amount, while preserving the course of seeking waiver before the Central Board.

Conclusion: Liberty was granted to the successful resolution applicant to seek waiver of the Section 14B damages, and no direction for immediate payment of that amount was issued.

Final Conclusion: The approval of the resolution plan was substantially sustained, but the successful resolution applicant was directed to pay the Section 7Q dues, while the claim for Section 14B damages was left open for waiver consideration.

Ratio Decidendi: Statutory provident fund liabilities forming part of admitted dues must be honoured in the resolution plan, whereas damages under Section 14B may be treated separately and can be considered for waiver under the applicable statutory framework.

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