Authority: National Company Law Tribunal, Allahabad Bench, Prayagraj
Order Date: 9th June, 2026
Case Overview
This is an interim order in IA No.382/2026, filed within the main insolvency proceeding CP (IB) No.280/ALD/2018. The application was filed by the Resolution Professional (RP) of M/s Juggilal Kamlapat Jute Mills Company Ltd., which is undergoing a Corporate Insolvency Resolution Process (CIRP) initiated under Section 9 of the Insolvency and Bankruptcy Code (IBC). The respondents are the Employees Provident Fund Organization (EPFO) and another unnamed party (respondent no.2).
The RP, represented by counsel Sh. Govind Bhardwaj, challenged an order dated 13th April 2026 passed by the EPFO (respondent no.1). The RP's contention is that this order could not have been legally passed while the moratorium under Section 14 of the IBC is in effect. The moratorium prohibits the continuation of any legal proceedings against the corporate debtor. The RP also referred to certain communications from the EPFO to respondent no.2 seeking a "value free transfer of the securities," the specifics of which are not detailed in the order.
Final Outcome
The NCLT Bench, comprising Member (Judicial) Sh. Praveen Gupta and Member (Technical) Sh. Ashish Verma, issued the following directions:
1. Notice of the application is to be issued to the non-applicant respondents.
2. An affidavit of service must be filed within one week.
3. The respondents are given two weeks after receiving notice to file their reply/response.
4. The applicant/RP may file a rejoinder within one week thereafter.
5. The matter is adjourned and listed for the next hearing on 29th July, 2026.
6. As an interim measure, the operation of the EPFO's order dated 13.04.2026 is stayed.
7. Furthermore, a status quo is to be maintained with respect to the "value free transfer of securities" until the next date of hearing.
The final ruling on the validity of the EPFO's order will be determined at a future hearing.
Topics: Insolvency, Regulatory Compliance