The National Company Law Appellate Tribunal ( NCLAT ) has dismissed the appeal filed by the Employees’ Provident Fund Organisation (EPFO), as it held that the provident fund claims based on the assessment proceedings that took place after the CIRP are not legally sustainable.
The issue arises out of the Corporate Insolvency Resolution Process (CIRP) of Metistech Fabrication Private Limited. EPFO had made a nominal claim which was reflected in the Information Memorandum.
However, during the pendency of the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 EPFO initiated assessment proceedings under the EPF Act and later made a higher claim of ₹18.33 lakh. However the approved resolution …