Provident fund contribution priority in winding up survives technical defects in proof and remains a preferential claim.

Employer's contribution to a provident fund payable by a company in liquidation was treated as a preferential claim in winding up. Section 11 of the Employees' Provident Funds Act, 1952 accorded priority to the employer's provident fund contribution, and section 530 of the Companies Act, 1956 covered sums due to a provident fund maintained by the company. The failure to expressly describe the claim as preferential in the proof affidavit was only a technical defect and did not defeat the statutory priority, which attached by operation of law under the winding-up scheme.

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Issues: Whether the employer's contribution to the provident fund, due from a company in liquidation, was entitled to preferential payment in winding up notwithstanding the objection that the claim was not specifically pleaded as preferential.

Analysis: Section 11 of the Employees' Provident Funds Act, 1952 gives priority to the employer's contribution payable to the provident fund where the employer is a company under liquidation. Section 530 of the Companies Act, 1956 provides priority for sums due from a provident fund maintained by the company, and the contribution payable under the Employees' Provident Funds Act falls within that description. The omission to expressly label the claim as preferential in the affidavit was only a technical defect. The priority attached by operation of law under the mandatory scheme of the winding-up provisions.

Conclusion: The claim was entitled to be treated as a preferential claim and the objection based on the form of proof did not defeat priority.

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