TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 337
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....s of the case necessary to be noticed for deciding these Appeals are:- 2.1. The Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor- M/s. Premshree Prime Properties Private Limited commenced vide order dated 17.02.2023, CA Pankaj Shah was appointed as Interim Resolution Professional who has subsequently confirmed as Resolution Professional. On 11.05.2023, Employee's Provident Fund Organisation (EPFO) initiated inquiry under Section 7A of the Employees' Provident Fund and Miscellaneous Provision Act 1952 (hereinafter referred to as "EPF & MP Act 1952"). On inspection report dated 10.05.2023 submitted by its Enforcement Officer, it was communicated that amount of Rs. 33,99,135/- was worked out as due amount from the Corporate Debtor for the period April, 2015 to March 2021. A claim Form was also submitted by Employees' Provident Fund Organisation to the Resolution Professional. A reply dated 25.05.2023 was sent by Resolution Professional to the EPFO requesting to submit proper claim Form as per Regulation 9 of the Insolvency and Bankruptcy (Insolvency Resolution for Corporate Persons) Regulations, 2016. EPFO did not submit claim Form and passed an order on 25.09....
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....be awarded, and the claim be considered as First charge over all other dues of the Financial Creditor/Corporate Debtor. (c) Direct the Respondent herein to consider the claim of the Applicant in priority as per the provision of IBC, 2016 and EPF & MP Act, 1952 and Resolution Plan if approved be modified to include the claim of EPF; (d) Pending the hearing and final disposal of this Application the Respondents be directed to retain assets of the value of Rs. 1,37,17,837/- (Rs. One Crore Thirty- Seven Lakh Seventeen Thousand Eight Hundred Thirty Seven only)) and not to distribute the same to enable the payment of the claim of the Applicant; (e) Interim and ad-interim reliefs in terms of prayer clause (a) to (d) above; (f) Such other and further reliefs as this Hon'ble Court deem fit and proper;" 2.3. Adjudicating Authority heard both the applications IA No.05 of 2024 and IA No.409 of 2024 and by impugned order has disposed of both the applications. With respect to application filed by the Resolution Professional IA No.5 of 2024, Adjudicating Authority held that there was no bar in carrying out for assessment of the dues even during Moratoriu....
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....nd included accordingly in the resolution plan. 23. We further note that the claim raised by the EPFO does not specifically mention the details of the individual employees in whose respect the PF dues have been computed by the EPFO. Their claim based upon the notional computation cannot be considered as payable to the EPFO. 24. In view of the above, we are of the considered view that the EPFO will have to provide the name & number of employees with year-wise details of the employees with respect to whom assessments have been made by them, together with the detailed computation based on which the claim has been raised. Such details will have to be furnished by the EPFO to the RP within a period of one month. Then RP and / or SRA, in case resolution plan gets approved, will be at liberty to raise their objection as regard computation made by the EPFO and in that case the EPFO will have to consider the objection and revise their computation. Meanwhile, the SRA is also at liberty to amend the resolution plan accordingly by way of an addendum providing for the payment on EPF dues. Needless to clarify, that, the addendum, if any, will have to be approved by the COC and ....
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....No. 5(MP)/2024 ln C.P.(I.B.) No. 37(MP)/2022, By National Company Law Tribunal, Indore Bench, Court No. I; b) To award cost of the present appeal in favor of the Appellant; c) pass any such other/ further order(s) as this Hon'ble Tribunal may deem fit and proper in the facts and circumstances of the present case." 2.6. Company Appeal (AT) (Insolvency) No.103 of 2025 has been filed by the EPFO challenging the order dated 13.11.2024 passed in IA No.409 of 2024. In the Appeal, following prayers have been made:- "a) To set aside the impugned Order Dated 13.11.2024 Passed In I.A. b) No. 409(MP)/2024 In C.P.(I.B.) No. 37(MP)/2022, By National Company Law Tribunal, Indore Bench, Court No. I; b) To award cost of the present appeal in favor of the Appellant; c) pass any such other/ further order(s) as this Hon'ble Tribunal may deem fit and proper in the facts and circumstances of the present case." 3. We have heard Learned Counsel for the Resolution Professional in support of his appeals and in opposition to the appeal filed by EPFO. Counsel for the EPFO has been heard in support of two appeals filed by EPFO as well as well as Respo....
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....hority directing the Resolution Professional to challenge the same in appropriate forum, hence, the order dated 25.09.2023 could not have been questioned in the proceedings. 6. We need to first examine the submissions of the Counsel for the Resolution Professional that after initiation of CIRP against the Corporate Debtor by order dated 17.02.2023 no determination could have been made by the EPFO nor any claim can be filed on the basis of any determination by the EPFO. As noted above, initially the EPFO filed its claim on the basis of inspection report dated 10.05.2023 demanding an amount of Rs. 33,99,135/- as due from the Corporate Debtor for the period April 2015 to March 2021. Subsequently, an order under Section 7A was passed on 25.09.2023 determining amount of Rs. 50,90,793/- and an order under Section 14B demanding an amount of damages and interest of Rs. 35,60,358/- under Section 7Q. On the basis of the aforesaid order, claim was filed on 26.09.2023 to accept the revised claim. It is useful to notice revised claim submitted on 26.09.2023 by the EPFO which is as follows:- 26.09.2023 "To, Sh. Pankaj Shah, Interim Resolution Professional for M/s....
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....urther, it is to inform that inquiry proceedings are being initiated to assess the EPF dues only. Hence, it is requested to admit the above mentioned EPF dues and inform the status of acceptance/rejection of the same at the earliest. (Shobhit Shrivastava) Regional Provident Fund Commissioner-I" 7. The demand made by the EPFO on the basis of inspection dated 10.05.2023 is clearly demand from the Corporate Debtor after commencement of the Moratorium. Similarly, revised claim submitted on 26.09.2023 on the basis of orders passed on 25.09.2023 where demand in pursuance of subsequent to Moratorium. This Tribunal has occasion to examine the consequences of Moratorium on assessment made by EPFO in Company Appeal (AT) (Insolvency) No.1062 of 2024-"Employees' Provident Fund Organisation Regional Office vs. Jaykumar Persumal Arlani, Resolution Professional of Ms/. Decent Laminates Pvt. Ltd." with Company Appeal (AT) (Insolvency) No.1065 of 2024- -"Employees' Provident Fund Organisation Regional Office vs. Sanjay Kumar Lalit, Resolution Professional of Apollo Soyuz Electricals P. Ltd. & Anr." decided on 03.01.2025. In the above case also, after commencement of the CIRP, EPFO....
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....s that, to alleviate corporate sickness, a statutory status quo is pronounced under Section 14 the moment a petition is admitted under Section 7 of the Code, so that the insolvency resolution process may proceed unhindered by any of the obstacles that would otherwise be caused and that are dealt with by Section 14. The statutory freeze that has thus been made is, unlike its predecessor in the SICA, 1985 only a limited one, which is expressly limited by Section 31(3) of the Code, to the date of admission of an insolvency petition up to the date that the adjudicating authority either allows a resolution plan to come into effect or states that the corporate debtor must go into the liquidation. For this temporary period, at least, all the things referred to under Section 14 must be strictly observed so that the corporate debtor may finally be put back on its feet albeit with a new management." 12. In (2021) 6 SCC 258 - P. Mohanraj and Ors. Vs. Shah Brothers ISPAT Pvt. Ltd., the Hon'ble Supreme Court had occasion to interpret the expression "proceeding" in Section 14. The object and purpose of moratorium has been captured in paragraph 30 of the judgment, which is as follows: ....
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....'suits or proceedings against the corporate debtor' has been used. The word 'proceeding' is not qualified, so as to confine it to proceedings before the Civil Court. The proceedings, which have the effect on the assets of the CD are all covered in the expression 'proceeding'. The question to be answered is as to whether after moratorium has been imposed, it was open for EPFO to proceed with the assessment proceeding. Learned Counsel for the parties state that during moratorium proceeding, no recovery proceeding can be initiated against the CD. However, submissions of the learned Counsel for the Appellant is that assessment proceedings against the CD may continue. Hence, the orders of assessment passed during moratorium period, were fully permissible and the claim on the basis of the said proceedings had to be admitted in CIRP." 9. After considering the submission of the parties, this Tribunal came to the conclusion that after initiation of the CIRP, assessment proceedings cannot be continued. In paragraphs 23 & 24, following was laid down:- "23. In the present case, admittedly assessment has been completed after initiation of the moratorium. We, thus, are of the view th....