PF Dues Priority Over SARFAESI Claims: SC

The Supreme Court ruled that provident fund dues and other social welfare contributions enjoy statutory priority over secured creditors’ claims under SARFAESI. The Court interpreted the EPF Act as a beneficial legislation intended to protect employees’ rights, holding that such dues constitute first charge on the establishment’s assets. Banks enforcing security interests must recognise this statutory priority and cannot override employee entitlements through SARFAESI measures. The ruling safeguards workers’ financial rights, reinforces the social-welfare purpose of labour legislation, and clarifies the precedence of welfare obligations over commercial lending recoveries.