The National Company Law Appellate Tribunal (NCLAT) has ruled that there is no prohibition on assessment proceedings by statutory authorities, including the Employees’ Provident Fund Organisation (EPFO), after the liquidation process begins under the Insolvency and Bankruptcy Code (IBC). However, the tribunal clarified that during the moratorium period, once insolvency proceedings are initiated, EPFO cannot continue such proceedings.
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In its decision to dismiss two petitions filed by EPFO, the NCLAT stated that once a company is under moratorium as per Section 14(1) of the IBC, assessment proceedings for determining the quantum of dues cannot continue. The tribunal said, “We hold that after initiation of…
