Supreme Court rules EPFO cannot recover PF interest and damages under Sections 7Q and 14B if claims weren’t crystallized before insolvency proceedings began against the company. – Employees Provident Fund Organisation v. Rachna Jhunjhunwala & Anr.
The Supreme Court has dismissed an appeal filed by the Employees Provident Fund Organisation (EPFO) seeking full recovery of interest and damages on provident fund dues from a company that went through insolvency proceedings. The bench made it clear that once a resolution plan is approved, such uncrystallized claims cannot resurface.
Background of the Case
The case arose after a company, referred to as the Corporate Debtor, was admitted into the Corporate Insolvency Resolution Process (CIRP) on 1…