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

> NCLT judgment dated 2022-07-15. Citation: TCN-2022-NCLT-01697. The case involves applications IA 1696 and IA 1085 of 2020 in CP (IB) 1374/MB/C-II/2017 before…

- **Court:** NCLT
- **Order date:** 15 Jul 2022
- **Citation:** TCN-2022-NCLT-01697
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/petron-engineering-construction-limited-ia-1696-and-ia-1085-of-2020-in-cp-ib-137-796f3064

## Summary

### Background

The case involves applications IA 1696 and IA 1085 of 2020 in CP (IB) 1374/MB/C-II/2017 before the National Company Law Tribunal (NCLT), Mumbai Bench, Court-II. These applications were filed by the Liquidator of Petron Engineering Construction Limited, the Corporate Debtor, challenging the legality of orders issued by The Regional PF Commissioner (I) & Anr. under the EPF & MP Act. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 23.03.2018, and a moratorium was imposed. Despite being informed of the moratorium, the Respondent issued summons and orders demanding payments towards provident fund dues, interest, damages, and penalty. The Liquidator contends that these actions violate the moratorium and Section 33(5)

…

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Petron Engineering Construction Limited on 23.03.2018, and a moratorium was imposed under Section 14 of the Insolvency and Bankruptcy Code (IBC). The Regional PF Commissioner (I) & Anr., despite being informed of the moratorium, issued summons dated 04.10.2018 under Section 7A of the EPF & MP Act, 1952, for conducting an inquiry on outstanding Provident Fund dues. The Corporate Debtor appeared before the Commissioner on 22.10.2018 and requested that the proceedings be kept in abeyance due to the ongoing CIRP and moratorium. This request was reiterated on 16.12.2019. The Adjudicating Authority ordered the liquidation of the Corporate Debtor on 23.01.2020, and the Applicant was appointed as

…

## Issues and analysis

### Issue 1: Whether the Orders and Notices issued by the Respondent are in breach of the moratorium imposed by …

**Ratio:** Section 14 of the Insolvency and Bankruptcy Code (IBC) imposes a moratorium on the

…

**Reasoning:** The court reasoned that the proceedings initiated by the Respondent under Section 7A of

…

**Interpretation:** The interpretation of Section 14 of the IBC is that it provides a complete

…

**Application:** In this case, the Respondent initiated proceedings and issued orders demanding

…

## Parties

- **Judges:** P.N. Deshmukh…; Shyam Babu…
- **Appellants:** Vineet K Ch…
- **Respondents:** Petron Engineering…; The Regional PF…

## Timeline

- **2018-03-23 — Initiation…**: Corporate Insolvency Resolution Process (CIRP)…
- **2018-04-06 — Information to…**: Corporate Debtor informed the Respondent about the initiation of CIRP and imposition of…

## 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/petron-engineering-construction-limited-ia-1696-and-ia-1085-of-2020-in-cp-ib-137-796f3064