# In the matter of Kalpyog Chemicals Private Limited

> NCLT judgment dated 2024-01-24. Citation: TCN-2024-NCLT-02940. The Employees Provident Fund Organization (EPFO) filed an application under Section 42 of the…

- **Court:** NCLT
- **Order date:** 24 Jan 2024
- **Citation:** TCN-2024-NCLT-02940
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kalpyog-chemicals-private-limited-01a8b338

## Summary

### Background

The Employees Provident Fund Organization (EPFO) filed an application under Section 42 of the Insolvency & Bankruptcy Code, 2016 against Mr. Sreekumar Radhakrishnan Nair, the liquidator of Kalpyog Chemicals Private Limited, seeking to quash an order dated 26.04.2023 passed by the liquidator regarding provident fund dues of Rs. 15,29,995. The EPFO claimed priority over other claims for these dues. The Corporate Debtor, Kalpyog Chemicals Private Limited, was admitted into CIRP on 29.08.2019, and a liquidation order was passed on 21.09.2020, appointing Mr. Nair as liquidator. The liquidator had previously paid dues under sections 7A and 7Q of the Employees Provident Funds & Miscellaneous Provisions Act, 1952, amounting to Rs. 25,50,007 on 06.07.2022. A dissolution

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## Facts

The Employees Provident Fund Organization (EPFO) filed an appeal against Mr. Sreekumar Radhakrishnan Nair, the liquidator of Kalpyog Chemicals Private Limited, challenging an order related to provident fund dues. Kalpyog Chemicals Private Limited was admitted into CIRP on 29.08.2019, and subsequently, a liquidation order was issued on 21.09.2020, appointing Mr. Nair as liquidator. EPFO filed a claim for Rs. 40,80,002 on 17.12.2020. The liquidator had already paid Rs. 25,50,007 towards dues under sections 7A and 7Q of the Employees Provident Funds & Miscellaneous Provisions Act, 1952 on 06.07.2022. A dissolution order for Kalpyog Chemicals Private Limited was passed on 14.12.2022. EPFO's appeal specifically challenged the liquidator's order dated 26.04.2023,

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## Issues and analysis

### Issue 1: Whether the appeal filed by the Employees Provident Fund Organization (EPFO) under Section 42 of …

**Ratio:** Section 42 of the IBC allows appeals against the decision of a liquidator. However, the

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**Reasoning:** The court reasoned that since the corporate debtor had already been dissolved and the

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**Interpretation:** Section 42 of the IBC is interpreted to mean that an appeal can only be filed

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**Application:** In this case, the letter from the liquidator was issued after the dissolution

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## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **Appellants:** Employees…
- **Respondents:** Kalpyog Chemicals…; Sreekumar…
- **Advocates:** Uinaq…; Laukik Pa…

## Timeline

- **2019-08-29 — CIRP Admi…**: The Corporate Debtor, Kalpyog Chemicals…
- **2020-09-21 — Liquidation…**: Order for liquidation was passed, and Mr. Sreekumar Radhakrishnan Nair was appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 42 — Appeal against the decision of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-42)

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