The Supreme Court emphasized the need for the Employees Provident Fund Organization (EPFO) to comply with the timelines set by the Insolvency and Bankruptcy Code, 2016.
In an order, the Supreme Court Bench comprising of Justices Sanjiv Khanna and S.V.N. Bhatti was hearing an appeal and warned that legal consequences for non-compliance and endorsing action against negligent EPFO employees, while also affirming the EPFO's right to proceed in accordance with the law and dismissing the appeal.
In the present Supreme Court order, the delay was condoned. The Supreme Court heard the counsel for the appellant, the Employees Provident Fund Organization (EPFO), and emphasized the importance of adhering to the timelines specified in the Insolvency and Bankruptcy Code, 2016. Failure to do so could result in legal consequences, and EPFO employees were urged to be aware of these consequences to ensure compliance.
The Supreme Court also stressed that action should be taken against any EPFO employees found negligent in their duties according to the law.
Furthermore, the Supreme Court stated that the impugned judgment did not affect EPFO's rights to proceed in accordance with the law, citing Section 36(4)(a)(iii) of the IBC.
As a result, the Apex Court found no grounds to interfere with the conclusions reached in the impugned judgment and dismissed the appeal. Any pending applications were also disposed of as a result of this order.