# In the matter of Propyl Packaging Limited IA(IBC)-298-KOB-2022 in IBA-52-KOB-2019

> NCLT judgment dated 2023-01-25. Citation: TCN-2023-NCLT-04882. The case involves an application (IA(IBC)/298/KOB/2022) filed by the Regional Provident Fund…

- **Court:** NCLT
- **Order date:** 25 Jan 2023
- **Citation:** TCN-2023-NCLT-04882
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/propyl-packaging-limited-iaibc-298-kob-2022-in-iba-52-kob-2019-997bb06a

## Summary

### Background

The case involves an application (IA(IBC)/298/KOB/2022) filed by the Regional Provident Fund Commissioner-II (Legal) against the Liquidator of Propyl Packaging Limited, which is undergoing liquidation. The applicant sought a direction from the NCLT to the liquidator to consider their representation (Annexure A-9) and release the entire amount due to the Employees' Provident Fund Organisation (EPFO) as claimed in their claim petition, without limiting it as done in Annexure A-8. Propyl Packaging Limited was admitted into the Corporate Insolvency Resolution Process (CIRP) on 2020-02-14. The applicant submitted a claim petition for Rs. 7,68,989/- before the constitution of the liquidation estate, representing EPF statutory dues from November 2014 onwards. The applicant

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## Facts

Prayag Poly. Tech Pvt. Ltd. is undergoing liquidation. The Regional Provident Fund Commissioner-II (Legal) filed an application against the Liquidator of Propyl Packaging Limited, seeking the release of Rs. 7,68,989/- due to the Employees' Provident Fund Organisation (EPFO). Propyl Packaging Limited was admitted into Corporate Insolvency Resolution Process (CIRP) on 2020-02-14. The applicant submitted a claim petition for the EPFO dues, which included EPF dues, penal damages under Section 14B of the Act, and interest under Section 7Q for the belated remittance of statutory contribution from 2014-01-01 onwards. The Liquidator initially admitted Rs. 70,942/- out of the total claim but later rejected the revised claim of Rs. 7,68,989/- because it was filed after the

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## Issues and analysis

### Issue 1: Whether the Employees' Provident Fund dues should be excluded from the liquidation estate under …

**Ratio:** Section 36(4) of the IBC contains an injunction stating that sums due to any workmen or

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**Reasoning:** The court reasoned that a plain reading of Section 36(4) indicates that what is excluded

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**Interpretation:** Section 36(4) of the IBC is interpreted to mean that any dues related to

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**Application:** Since the amount claimed by the EPFO represents dues related to the provident

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** REGIONAL PROVIDENT…
- **Respondents:** Propyl Packaging…; GEORGE VARKEY,…

## Timeline

- **2019-01-01 — IBA/52/KO…**: The initial insolvency application…
- **2020-02-14 — Admission in…**: Propyl Packaging Limited was admitted into the Corporate Insolvency Resolution Process…

## 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)

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