Moratorium under insolvency law bars provident fund assessment proceedings that create post-CIRP liabilities against the corporate debtor.

Section 14 moratorium under the Insolvency and Bankruptcy Code bars continuation of provident fund assessment proceedings after commencement of CIRP where they culminate in a pecuniary liability against the corporate debtor. An assessment or demand completed during the moratorium cannot be enforced against the debtor, and a claim founded on such post-moratorium assessment cannot be admitted in CIRP. The appellate tribunal also noted that a direction to furnish employee-wise details and reassess the claim was unnecessary once the underlying assessment and demand were impermissible during the moratorium.

---

---

Issues: Whether proceedings for assessment and determination of provident fund dues initiated or continued after commencement of CIRP are barred by moratorium, and whether any claim founded on such post-moratorium assessment can be admitted or enforced in the CIRP.

Analysis: The moratorium under Section 14 of the Insolvency and Bankruptcy Code creates a statutory freeze against proceedings that affect the assets and resolution process of the corporate debtor. Assessment proceedings by the provident fund authority, though distinct from recovery, cannot be continued after commencement of CIRP when they culminate in a pecuniary liability against the corporate debtor. A claim founded on inspection or assessment completed during the moratorium cannot be pressed in CIRP. The direction to furnish employee-wise details and reassess the claim was unnecessary once the underlying assessment and demand were held impermissible during moratorium.

Conclusion: The post-CIRP assessment and resulting demand under the provident fund proceedings were not enforceable against the corporate debtor, and the claim based on them could not be admitted in CIRP.

---