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.