AIROnline 2025 SC 789

Employees Provident Funds and Miscellaneous Provisions Act (19 of 1952) , S.11— Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (54 of 2002) , S.35— Sale of defaulter’s assets – Claims of priority by EPFO and bank – Determination of – Recovery proceedings were initiated against establishment as it had defaulted in payment of provident fund dues – A bank and appellant assignee of another bank had auctioned property of establishment under SARFAESI Act – Bank claimed priority under S. 35 of SARFAESI Act, over sales taxes and other dues payable to Government or local authority and pleaded that no recovery can be made from it till its entire dues were satisfied – Appellant offered to make part of the payment to EPFO but wanted bank to bear more liability having recovered more in auction – Bank was not joined as a party before High Court when order was passed by High Court directing appellant to transmit money to the account of EPFO – Matter was remanded to High Court to examine priority of first charge amongst EPFO and secured creditors after impleading Bank as a respondent.

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