Assessment Proceedings Cannot be Continued by EPFO After Initiation of Moratorium u/s 14 of IBC: NCLAT

The NCLAT ruled that assessment proceedings cannot continue under the Employees’ Provident Fund Organization (EPFO) after the initiation of moratorium under Section 14 of the IBC. The decision emphasizes that once a moratorium is imposed, any recovery proceedings, including those by EPFO, must cease. The ruling reinforces the importance of respecting the moratorium period in insolvency proceedings, protecting the rights of creditors and the company undergoing resolution. It provides clarity on the legal process, ensuring that all recovery actions are suspended during this critical phase of insolvency resolution