# In the matter of KSM Spinning Mills Limited IA No. 1556-2022 in CP (IB) No.250-Chd-Hry-2018

> NCLT judgment dated 2023-01-03. Citation: TCN-2023-NCLT-05231. The Employees' Provident Fund Organisation (EPFO) filed an application seeking directions…

- **Court:** NCLT
- **Order date:** 3 Jan 2023
- **Citation:** TCN-2023-NCLT-05231
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ksm-spinning-mills-limited-ia-no-1556-2022-in-cp-ib-no250-chd-hry-2018-92e52491

## Summary

### Background

The Employees' Provident Fund Organisation (EPFO) filed an application seeking directions against the respondents to implement orders passed by the EPFO. The EPFO claimed Rs. 35,66,200/- under Section 7-A, Section 14 (B), and Section-7Q of the EPF & MP Act, 1952, as per the revised claim dated 29.07.2022. The EPFO sought remittance of the amount and exclusion of sums due to workmen/employees from the corporate debtor's liquidation estate assets. The applicant initially initiated an inquiry under Section 7A of the EPF & MP Act, 1952, for non-compliance with EPF provisions. The Resolution Professional rejected the revised claim, stating it lacked documentary evidence and was filed after the 90-day period for claim submission as per CIRP Regulation 12(2) of the IBC 2016.

## Facts

The Employees' Provident Fund Organisation (EPFO) filed an application (IA No. 1556/2022) in CP (IB) No.250/Chd/Hry/2018 against K.S.M. Spinning Mills Limited, the Corporate Debtor, and Sh. Nipan Bansal, the Resolution Professional, seeking the implementation of orders passed by the EPFO and remittance of Rs. 35,66,200/- determined under Section 7-A, Section 14 (B), and Section-7Q of the EPF & MP Act, 1952, as per the revised claim dated 29.07.2022. The EPFO's claim pertains to EPF dues for the period 09/2017 to 11/2019. The applicant-EPFO initiated an enquiry under Section 7A of EPF & MP Act 1952 against the corporate debtor for not complying with the provisions of EPF & MP Act by not depositing the EPF dues. The Resolution Professional rejected the

…

## Issues and analysis

### Issue 1: Whether the amount of Rs. 35,66,200/- and subsequent demands arising out of proceedings under the …

**Ratio:** Section 17B of the Employees Provident Funds and Miscellaneous Act, 1952, stipulates that

…

**Reasoning:** The court relied on the decision of the Hon'ble NCLAT in Sikander Singh Jamuwal versus

…

**Interpretation:** The court interpreted Section 17B of the EPF Act to mean that the liability to

…

**Application:** The court applied the ratio to the facts of the case, holding that the

…

## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Employees…
- **Respondents:** KSM Spinning…; Sh. Nipan…

## Timeline

- **2017-09-01 — Period of E…**: Period for which EPF dues were not…
- **2019-08-19 — Order Is…**: Copy of the order dated 19.08.2019 is…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ksm-spinning-mills-limited-ia-no-1556-2022-in-cp-ib-no250-chd-hry-2018-92e52491