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PF obligations must survive insolvency, rules Bombay HC

  • Bombay High Court ruled that a company undergoing insolvency must fulfill its statutory obligations towards employees.
  • Dalmia Cement (Bharat) was directed to pay over Rs 25 crore in EPF dues to workers of Murli Industries, acquired through a resolution plan.
  • The Court rejected the argument that EPF claims are extinguished during insolvency, clarifying that such dues are statutory obligations not to be overridden under IBC.
  • The judgment emphasized the protection of employee contributions, distinguishing them from operational debts under the IBC framework.

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