TaxTMI 
TaxTMI 
2011 (2) TMI 1524
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....erve that as regards the employer's contribution, preferential claim under section 530 of the Companies Act, 1956 ("the Companies Act") to the extent of Rs. 48,091 has been admitted; however, claim regarding damages determined under section 14B for a sum of Rs. 18,395 was not admitted on the ground that the claim after passing of the winding up order is not admissible under the Companies Act. The brief resume of facts necessary for adjudication of the dispute are that M/s. Basera Cement Ltd. ("the company") was ordered to be wound up vide order dated February 8, 2002, in Company Petition No. 38 of 2000 and the official liquidator attached to this court was appointed as provisional liquidator of the company to conduct proceeding....
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....ars from the record that since the claim filed by the appellant -authority was time barred; as such the application was filed under rule 177 of the Companies (Court) Rules, 1959 and after the delay was condoned vide order dated February 27, 2009, in Company Application No. 9 of 2009, the claim was submitted by the appellant and was examined by the respondent (official liquidator). However, after taking note of the material placed on record, the dues towards the employer's contribution of the period which were prior to passing of the winding up order were admitted being preferential claim under section 530 of the Companies Act vide order dated May 12, 2009 (annexure 3) but at the same time, damages claimed by the appellant -authority vid....
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....9;s dues are having overriding preferential claim under section 529A and the damages are also dues relating to the workmen; as such are required to be recovered under section 11(2) having overriding effect amongst preferential claim; in such circumstances, rejection of their claim for damages is not legally sustainable. Per contra, counsel for the respondent (official liquidator) submits that the EPF Act is a special Act of having introduced scheme of provident funds for the welfare of workers determined under section 7A; at the same time if an employer makes default in payment of contribution, damages can also be imposed after affording opportunity of hearing under section 14B of the EPF Act and as regards the employer's contr....
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....ruary, 1996, were later on determined under section 14B of the EPF Act vide order dated October 11, 2001 (annexure 5) but recovery certificate was issued under section 8B of the EPF Act vide order dated April 24, 2002 (annexure 6), which was passed after passing of the winding up order dated February 8, 2002. ( 8. ) As regards the claim of the employer's contribution besides it being related to the period prior to the passing of winding up order, it was otherwise being preferential claim and admissible under section 530 of the Companies Act; as such was admitted by the respondent (official liquidator) vide order dated May 12, 2009 (annexure 3). However, the grievance raised herein is only in regard to the damages declined vide order ....