Crystallization of Statutory Dues in CIRP: NCLT Mandates Formal Adjudication for EPFO Claims Before Plan Approval
The intersection of statutory liabilities and insolvency proceedings frequently generates complex legal disputes, particularly concerning the treatment of unadjudicated claims. In a significant ruling, the National Company Law Tribunal (NCLT), Mumbai Bench, in the matter of Bank of India Vs Vishal Structurals Private Limited, has reinforced the principle that statutory dues must be formally crystallized through proper adjudicatory mechanisms before they can be admitted into the Corporate Insolvency Resolution Process (CIRP).
This comprehensive analysis delves into the tribunal's decision to approve the resolution plan submitted by Bekem Infra Projects Private Limited, while concurrently dismissing the provisional claims raised by the Employees’ Provident Fund Organisation (EPFO). The judgment provides critical insights into the interpretation of the Insolvency and Bankruptcy Code 2016, specifically regarding the treatment of claims under the EPF & MP Act 1952.
Genesis of the Corporate Insolvency Resolution Process
The trajectory of the corporate debtor, Vishal Structurals Private Limited (incorporated under the Companies Act 1956), into insolvency began when the NCLT admitted a petition under Section 7 of the Insolvency and Bankruptcy Code 2016. The formal commencement date of the CIRP was recorded as 12.03.2025. Following the initiation, the appointed Interim Resolution Professional transitioned into the role of the Resolution Professional (RP) and published the requisite public announcements to consolidate claims from various stakeholders.
The Committee of Creditors (CoC) was subsequently formed, featuring Bank of India as the exclusive secured financial creditor holding a 100% voting share.
Invitation for Expressions of Interest and Plan Selection
To maximize the value of the corporate debtor's assets, the RP issued Form-G to solicit Expressions of Interest. The process attracted considerable market attention, culminating in a final list of ten prospective resolution applicants. Following multiple extensions to accommodate the overwhelming interest, three entities ultimately submitted their resolution blueprints:
- Bekem Infra Projects Private Limited
- Derit Infrastructure Private Limited
- Shri Danesh Contractor
The CoC meticulously evaluated the commercial viability of these submissions across several meetings. While Derit Infrastructure Private Limited’s proposal was dismissed due to inherent ambiguities and conditional clauses, Bekem Infra Projects Private Limited proactively optimized its financial proposition. On 01.01.2026, a fully compliant and revised resolution plan was submitted by Bekem Infra.
Subjected to a voting process that spanned from 08.12.2025 to 23.02.2026, the CoC unanimously endorsed Bekem Infra's plan with a 100% voting majority. Consequently, a Letter of Intent was issued on 04.03.2026, which the successful applicant accepted by remitting a performance security deposit of Rs. 1.04 crore (specifically Rs. 1,04,50,000) on 06.03.2026. The RP then approached the NCLT under Section 30(6) of the Insolvency and Bankruptcy Code 2016 to secure judicial sanction for the approved plan.