Hon’ble Supreme Court in its judgement dated 08.11.2011 in the matter of Employees’ Pension Fund Commissioner Vs. O.L. of Esskay Pharmaceuticals Limited and others, SLP (Civil) No. 7642, 7644, 7645 and 7646 of 2011 upheld the priority of dues under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 on the assets of a company under liquidation over all other dues including that of secured creditors under Section 529, 529A & 530 of the Companies Act.
The provision of priority of Employees’ Provident Fund dues is already available under Section 11(2) of the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952. The order of Hon’ble Supreme Court is binding to all and requires no separate notification. However, the order of Hon’ble Supreme Court has been circulated to all the field offices of Employees’ Provident Fund Organisation for compliance.
The Government has not received any representation in this regard from employees.
This information was given by the Minister of Labour and Employment Shri Mallikarjun Kharge in reply in reply to a written question in the Lok Sabha today.
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