The Madras High Court recently ruled that provident fund dues are excluded from the liquidation estate of a company under Section 36(4)(a)(iii) of the Insolvency and Bankruptcy Code, 2016, and thus cannot be denied to claimants on grounds of delay.
The instant case arose from the liquidation proceedings of K.N. Interior Designs and Engineering Pvt. Ltd., as ordered by the NCLT on 19 September 2022. Pursuant to this, the liquidator published a notice calling upon all creditors to submit their claims on or before 19 October 2022.
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The EPFO filed its claim on 21 October 2022, seeking recovery of provident fund dues amounting to ₹21,94,745. The liquidator rejected the…