# In the matter of Roofit Industries Limited

> NCLT judgment dated 2024-03-12. Citation: TCN-2024-NCLT-02101. This case involves an application (IA No. 2705 of 2021) filed by the Employees Provident Fund…

- **Court:** NCLT
- **Order date:** 12 Mar 2024
- **Citation:** TCN-2024-NCLT-02101
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/roofit-industries-limited-6d1ecce3

## Summary

### Background

This case involves an application (IA No. 2705 of 2021) filed by the Employees Provident Fund Organisation (EPFO) in the Corporate Insolvency Resolution Process (CIRP) of Roofit Industries Limited, the Corporate Debtor. The EPFO sought a direction to the Liquidator to admit their claim of Rs. 59,70,826/- as per Form C dated 22.2.2018, and to consider this claim as a priority over other dues of the Corporate Debtor. The CIRP was initiated under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016. Subsequently, the Tribunal allowed the application for liquidation under Section 33 of the Code, and the Resolution Professional was continued as the Liquidator.

## Facts

The Employees Provident Fund Organisation (EPFO) filed IA No. 2705 of 2021 seeking a direction to the Liquidator of Roofit Industries Limited (Corporate Debtor) to admit their claim of Rs. 59,70,826/- as a priority debt. The claim was submitted as per Form C dated 22.2.2018. The Corporate Insolvency Resolution Process (CIRP) was initiated under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, and subsequently, the company was ordered into liquidation under Section 33 of the IBC. A public announcement was made on 27.1.2018, and the EPFO submitted its claim on 16.2.2018. The Liquidator initially confirmed the admission of the claim via email dated 12.4.2018 but later rejected the priority claim, citing a previous NCLAT order. The EPFO argued that Section

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## Issues and analysis

### Issue 1: Whether the claim of the Employees Provident Fund Organisation (EPFO) should be considered a …

**Ratio:** Section 11(2) of the EPF and MP Act provides that any amount due from an employer in

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**Reasoning:** The Tribunal considered the provisions of Section 11(2) of the EPF and MP Act, which

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**Interpretation:** The interpretation of Section 11(2) of the EPF and MP Act is that it provides a

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**Application:** The Tribunal applied the ratio of Section 11(2) to the facts of the case,

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Employees…
- **Respondents:** Roofit Industries…; Jitendra Kumar…

## Timeline

- **2021-01-01 — Filing of IA No. 2705…**: Employees Provident Fund Organisation filed IA No. 2705 of 2021 seeking priority for…
- **2016-01-01 — Enactment…**: The Insolvency and…

## 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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