Employees Provident Fund Dues Not Extinguished by Resolution Plan Under IBC: Bombay High Court

The Bombay HC ruled that provident fund dues, including the employer's contribution, do not form part of a corporate debtor's assets under the IBC and cannot be wiped out by a resolution plan.

The Court clarified that provident fund dues are statutory obligations held in trust for employees and do not qualify as operational debts under the IBC and are excluded from the definition of assets under Section 18 of the IBC.

Rejecting Dalmia Cement's argument that PF dues were extinguished based on a previous ruling, the Court directed payment of ₹25.23 crore in unpaid EPF dues and reaffirmed that such liabilities must be honored.