EPF Obligations: Treatment During Insolvency and Liquidation

  • Chahak Aggarwal and Akanksha Yadav
  • Show Author Details
  • Chahak Aggarwal

    LLM Student at National Law University, Delhi, India

  • Akanksha Yadav

    LLM Student at National Law University, Delhi, India

  • img Download Full Paper

Abstract

Insolvency and Bankruptcy Code, 2016 provides for a comprehensive mechanism for resolving the claims of creditors, whether secured or unsecured, of an organization. Meanwhile, The Employees Provident Fund Act, 1952 was brought into force to ensure the social security of employees of an organization. The claims of the employees under EPF Act are often brought up whenever there is a formation of a Resolution Plan for a company undergoing Corporate Insolvency Resolution Process or when the liquidation of a company commences. This paper is an attempt to analyze the order of priority of EPF dues of the employees under the IBC mechanism while a company is undergoing Corporate Insolvency Resolution Process by analyzing the provisions of the relevant acts, the waterfall mechanism under IBC and various orders passed by the NCLAT and Supreme Court while dealing with the same issue. Moreover, this paper will also analyze the order of priority given to EPF dues during liquidation of a company and the difference in the treatment between the two.

Type

Research Paper

Information

International Journal of Law Management and Humanities, Volume 6, Issue 3, Page 839 - 851

DOI: https://doij.org/10.10000/IJLMH.114909

Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution -NonCommercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting, and building upon the work for non-commercial use, provided the original work is properly cited.

Copyright

Copyright © IJLMH 2021