# In the matter of Regional Provident Commissioner Vs. Vandana Garg and Anr. CA (AT) (CH) (Ins.) No. 50 of 2021

> NCLAT judgment dated 2021-05-12. Citation: TCN-2021-NCLAT-00266. The case involves an appeal against an order passed by the Adjudicating Authority/National…

- **Court:** NCLAT
- **Order date:** 12 May 2021
- **Citation:** TCN-2021-NCLAT-00266
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/regional-provident-commissioner-vs-vandana-garg-and-anr-ca-00512de6

## Summary

### Background

The case involves an appeal against an order passed by the Adjudicating Authority/National Company Law Tribunal, Chennai Bench, which approved a Resolution Plan that waived off a major portion of the Provident Fund dues owed by the Corporate Debtor, GVR Infra Projects Limited. The Regional Provident Commissioner, representing the Employees Provident Fund Organisation, filed the appeal, arguing that the waiver violates Section 11 of the Employees Provident Fund Act (EPF Act) and Section 36(4)(a)(iii) and Section 30(2)(e) of the Insolvency and Bankruptcy Code (IBC) 2016. The Corporate Debtor had defaulted in payment of dues, including employees' share of contributions, since April 2014. The CIRP was initiated against the Corporate Debtor on October 15, 2018.

## Facts

The Corporate Debtor, GVR Infra Projects Limited, defaulted in payment of dues/damages/interest, including employees' share of contributions, since April 2014. The total EPF dues amounted to ₹ 2,84,69,797. The Adjudicating Authority initiated CIRP against the Corporate Debtor on October 15, 2018. The Appellant, Regional Provident Commissioner, submitted its claim in Form 'F' on December 31, 2018, and later in Form 'B' as suggested by the IRP. The RP admitted a claim of ₹ 1,95,01,301 for the period from April 2014 to October 2017. The CoC approved the Resolution Plan on November 27, 2019. The Adjudicating Authority approved the Resolution Plan on July 20, 2020. The Appellant raised a claim of ₹ 2,84,69,797 in the appeal, which is higher than the amount claimed before

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## Issues and analysis

### Issue 1: Whether the approved Resolution Plan can waive off Provident Fund dues, considering the priority of …

**Ratio:** The Supreme Court in 'The Committee of Creditors of Essar Steel India Ltd versus Satish

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**Reasoning:** The Tribunal reasoned that once a resolution plan is approved, all claims stand frozen

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**Interpretation:** The interpretation of Section 31 of the I&B Code, particularly after the

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**Application:** In this case, the Appellant's claim for Provident Fund dues was considered

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## Parties

- **Judges:** Venugop…; V. P. S…
- **Appellants:** Regional Provident…
- **Respondents:** GVR Infra…; Vandana…
- **Advocates:** Mr Manish…; Mr Rajeev K.…; +2 more

## Timeline

- **2014-04-01 — Default in…**: Corporate Debtor defaulted in payment of dues/damages/interest, including employees'…
- **2018-10-15 — CIRP Init…**: Adjudicating Authority initiated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 36(4) — Liquidation estate](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-36)

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