# In the matter of Petron Engineering Construction Limited IA 1085 and IA 1696 of 2020 in CP (IB) 1374-MB-C-II-2017

> Read the full IBC case summary for In the matter of Petron Engineering Construction Limited IA 1085 and IA 1696 of 2020 in CP (IB) 1374-MB-C-II-2017. NCLT…

- **Court:** NCLT
- **Order date:** 15 Jul 2022
- **Citation:** TCN-2022-NCLT-04584
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/petron-engineering-construction-limited-ia-1085-and-ia-1696-of-2020-in-cp-ib-137-36bcc7ba

## Summary

### Background

The Liquidator of the Corporate Debtor filed applications challenging orders and recovery notices issued by the Regional PF Commissioner for provident fund dues, interest, damages, and penalty, arguing that these were issued in violation of the moratorium imposed during CIRP and liquidation.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Petron Engineering Construction Limited (Corporate Debtor) by an order dated March 23, 2018, which also imposed a moratorium under section 14 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor informed the Regional PF Commissioner (Respondent) about the CIRP and moratorium on April 6, 2018. Despite this, the Respondent issued summons on October 4, 2018, under Section 7A of the EPF & MP Act 1952, to inquire into outstanding Provident Fund dues.

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## Issues and analysis

### Issue 1: Whether the orders and recovery notices issued by the Regional PF Commissioner are in breach of the…

**Ratio:** Proceedings, whether assessment, quasi-judicial, or judicial, are barred by the…

**Reasoning:** The NCLT found that the proceedings initiated by the Respondent under Section 7A of the…

**Interpretation:** The court interpreted Section 14 and Section 33(5) of the IBC broadly to…

**Application:** Despite the Respondent's contention that the proceedings were mere assessment…

## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Advocates:** Atul N…; Sandeep…; +1 more

## Timeline

- **March 23, 2018 — CIRP Init…**: Corporate Insolvency Resolution Process initiated against the Corporate Debtor, and…
- **April 6, 2018 — Intimation…**: Corporate Debtor informed the Respondent about the initiation of CIRP and imposition of…

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