# Anuj Bajpai vs. Employee Provident Fund Organisation & Ors.

> NCLAT judgment dated 2024-07-10. Citation: TCN-2024-NCLAT-00331. The appeal was filed by Mr. Anuj Bajpai, the Liquidator of Shirt Company (India) Pvt. Ltd.…

- **Court:** NCLAT
- **Order date:** 10 Jul 2024
- **Citation:** TCN-2024-NCLAT-00331
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/anuj-bajpai-vs-employee-provident-fund-organisation-ors-8408670a

## Summary

### Background

The appeal was filed by Mr. Anuj Bajpai, the Liquidator of Shirt Company (India) Pvt. Ltd. (Corporate Debtor), against an order dated 30.06.2023 passed by the National Company Law Tribunal, Mumbai Bench, Court - IV. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 26.02.2020, and the Respondents filed claims of Rs. 1,24,86,750/-. The Corporate Debtor was directed to be liquidated on 22.12.2021, and the Appellant was appointed as the Liquidator. The Appellant contended that the Respondents' claims should be treated under the waterfall mechanism as per Section 53 of the Insolvency and Bankruptcy Code (IBC).

## Facts

Mr. Anuj Bajpai, the Liquidator of Shirt Company (India) Pvt. Ltd. (Corporate Debtor), filed an appeal against the order dated 30.06.2023 passed by the National Company Law Tribunal (NCLT), Mumbai. The Corporate Debtor was admitted into CIRP on 26.02.2020. The Employee Provident Fund Organisation (EPFO) filed claims of Rs. 1,24,86,750/-. The Corporate Debtor was directed to be liquidated on 22.12.2021, and the Appellant was appointed as the Liquidator. The liquidator argued that the EPFO claims should be treated under the waterfall mechanism as per Section 53 of the IBC. The Adjudicating Authority partly allowed the application, stating that separate recovery proceedings should not continue, and the attachment should be discharged as the amount was secured in a fixed

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## Issues and analysis

### Issue 1: Whether provident fund dues are to be decided and distributed in accordance with Section 36(4)(iii) …

**Ratio:** Section 36(4)(a)(iii) of the IBC states that all sums due to any workman or employee from

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**Reasoning:** The court reasoned that the IBC provides specific protection for workmen's dues related

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**Interpretation:** The interpretation of Section 36(4)(a)(iii) clarifies that the intention of the

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**Application:** In this case, the court applied the ratio by holding that the provident fund

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** Anuj Ba…
- **Respondents:** Shirt Company…; Employee Provident…
- **Other parties:** 7th Edition…; Provident Fund…; +10 more
- **Advocates:** Rahul Ga…; Nikita Abh…; +3 more

## Timeline

- **2020-02-26 — Admission in…**: The Corporate Debtor was admitted into…
- **2021-12-22 — Liquidation…**: The Corporate Debtor was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 53 — Distribution of assets](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-53)

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