In a landmark judgment, the Bombay High Court in Nagpur has clarified that a company undergoing insolvency cannot shirk its statutory obligations towards employees.
The Court directed Dalmia Cement (Bharat) to settle over Rs 25 crore in outstanding Employees’ Provident Fund (EPF) dues owed to workers of Murli Industries, a company it had acquired through an approved resolution plan.
Murli Industries, which entered insolvency in April 2017 after proceedings initiated by Edelweiss Asset Reconstruction Company, saw its cement division revived under a resolution plan approved in 2019. The scheme, sanctioned by the National Company Law Tribunal (NCLT), explicitly stipulated that all employee liabilities, including provident…
