Tamilnad Mercantile Bank Ltd. filed writ petitions challenging prohibitory and attachment orders issued by the Employees' Provident Fund Organisation (EPFO) regarding the Provident Fund dues of M/s. Sri Textile Erode Private Limited, which was undergoing liquidation under the Insolvency and Bankruptcy Code (IBC). The EPFO sought to recover the dues from the bank, which had received proceeds from the sale of the corporate debtor's assets. The bank contended that the EPFO should have filed its claim with the liquidator during the CIRP and that Section 238 of the IBC overrides the EPF Act. The EPFO argued that Section 36(4)(iii) of the IBC excludes Provident Fund dues from the liquidation estate and that the liquidator should have settled the dues first.
Tamilnad Mercantile Bank Ltd. is a scheduled bank with a branch in Erode. M/s. Sri Textile Erode Private Limited availed credit facilities from the bank, which became a Non-Performing Asset (NPA) on 2018-07-31. Another operational creditor, M/s. Yuktha Overseas, initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Sri Textile Erode Private Limited under the Insolvency and Bankruptcy Code, 2016 (IBC). The National Company Law Tribunal (NCLT) initiated CIRP on 2018-10-04, and an Interim Resolution Professional (IRP) was appointed, leading to liquidation. A liquidator was appointed on 2018-04-29, who called for claims from all creditors. The bank submitted a claim for Rs. 57,45,03,758.90. The liquidator released Rs. 14,34,73,661 to the bank from the sale
…Sign in to view the parties.
Credit facilities availed by M/s. Sri…
National Company Law Tribunal (NCLT) initiated…
Tamilnad Mercantile Bank Ltd. filed writ petitions challenging prohibitory and attachment orders issued by the Employees' Provident Fund Organisation (EPFO) regarding the Provident Fund dues of M/s. Sri Textile Erode Private Limited, which was undergoing liquidation under the Insolvency and Bankruptcy Code (IBC). The EPFO sought to recover the dues from the bank, which had received proceeds from the sale of the corporate debtor's assets. The bank contended that the EPFO should have filed its claim with the liquidator during the CIRP and that Section 238 of the IBC overrides the EPF Act. The EPFO argued that Section 36(4)(iii) of the IBC excludes Provident Fund dues from the liquidation estate and that the liquidator should have settled the dues first.
Tamilnad Mercantile Bank Ltd. is a scheduled bank with a branch in Erode. M/s. Sri Textile Erode Private Limited availed credit facilities from the bank, which became a Non-Performing Asset (NPA) on 2018-07-31. Another operational creditor, M/s. Yuktha Overseas, initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Sri Textile Erode Private Limited under the Insolvency and Bankruptcy Code, 2016 (IBC). The National Company Law Tribunal (NCLT) initiated CIRP on 2018-10-04, and an Interim Resolution Professional (IRP) was appointed, leading to liquidation. A liquidator was appointed on 2018-04-29, who called for claims from all creditors. The bank submitted a claim for Rs. 57,45,03,758.90. The liquidator released Rs. 14,34,73,661 to the bank from the sale
…Credit facilities availed by M/s. Sri…
National Company Law Tribunal (NCLT) initiated…