# In the matter of Tirupati Jute Industries Limited I.A.(IB)849-KB-2021 In C.P (IB) No.508-KB-2017

> NCLT judgment dated 2022-04-20. Citation: TCN-2022-NCLT-03183. Daaksh Jute LLP filed an application (I.A.(IB)849/KB/2021) in C.P (IB) No.508/KB/2017 impugning…

- **Court:** NCLT
- **Order date:** 20 Apr 2022
- **Citation:** TCN-2022-NCLT-03183
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tirupati-jute-industries-limited-iaib849-kb-2021-in-cp-ib-no508-kb-2017-a216b1dc

## Summary

### Background

Daaksh Jute LLP filed an application (I.A.(IB)849/KB/2021) in C.P (IB) No.508/KB/2017 impugning a notice dated September 21, 2021, issued by the Regional Provident Fund Commissioner under section 8-F of the Employees Provident Fund and Miscellaneous Provisions Act, 1952. Daaksh Jute LLP sought a declaration that the notice was illegal, null, and void, and requested it be set aside. They also sought an injunction restraining the Provident Fund Authorities from taking any action based on the notice and a mandatory injunction directing them to de-freeze the applicant's ODCC account maintained with HDFC Bank. Daaksh Jute LLP is operating the Jute Mill of Tirupati Jute Industries Limited (in liquidation) as a lessee since August 1, 2016. The liquidation order was passed on

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## Facts

Daaksh Jute LLP, a Limited Liability Partnership, operates a Jute Mill as a lessee of Tirupati Jute Industries Limited, the Corporate Debtor, since August 1, 2016, based on a lease deed of the same date. Tirupati Jute Industries Limited is undergoing liquidation, with the liquidation order passed on February 13, 2019, and confirmed by NCLAT on February 20, 2020. The Regional Provident Fund Commissioner issued a notice dated September 21, 2021, under section 8-F of the Employees Provident Fund and Miscellaneous Provisions Act, 1952, demanding Rs.1,92,75,853/- from Daaksh Jute LLP, relating to the period from 2004 to November 2019, for Provident Fund dues of Tirupati Jute Industries Limited. Daaksh Jute LLP's bank account with HDFC Bank was attached due to this notice.

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## Issues and analysis

### Issue 1: Whether the notice dated 21st September, 2021 issued by the Regional Provident Fund Commissioner …

**Ratio:** The principle is that the applicant is only liable for dues arising after August 1, 2016,

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**Reasoning:** The court reasoned that a major portion of the amount claimed by the Provident Fund

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**Interpretation:** This issue involves the interpretation of the Employees Provident Fund and

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Rohit K…; Harish Chander…; +1 more
- **Appellants:** Daaksh Ju…
- **Respondents:** Tirupati Jute…; The Regional…

## Timeline

- **2016-08-01 — Lease Agr…**: Daaksh Jute LLP took over the Jute Mill of…
- **2019-02-13 — Liquidation…**: Liquidation order was passed against…

## 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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