VMCO is pleased to announce that our Managing Partner, Mr Karan Mehra, was able to attain relief for the Assam Tea Employees Provident Fund Organisation (“ATEPFO”) in a crucial appeal presented before the National Company Law Appellate Tribunal, Delhi. The said appeal was preferred after the aforementioned Organization was aggrieved by the decision of the Corporate Insolvency Resolution Professional, which sought to reduce the payment of the due Provident Fund Contributions and other like claims to almost half of their original claim value.
Mr Karan Mehra made detailed arguments based on the Employees Provident Fund & Miscellaneous Provisions Act, 1952, and the Insolvency and Bankruptcy Code, 2016, in order to explain how such a ‘hair-cut’ was in gross violation of the provision under Section 30 (2) (e) of the latter.
His legal acumen and submissions were appreciated by the NCLAT, which was pleased to hold that the impugned action of the CIRP was unlawful and that the ATPFO was entitled to a full payment of Rs. 2,10,13,798/-, as against their original claim.