Court asks new management to produce Official Liquidator’s confirmation on 2023 bid

DIMAPUR — The Kohima Bench of Gauhati High Court has extended its interim stay on recovery and attachment proceedings initiated by the Employees’ Provident Fund Organisation (EPFO) against Nagaland Pulp and Paper Company Ltd (NPPCL).

In an order dated September 10, Justice Manish Choudhury directed the petitioner to file an additional affidavit providing updated confirmation from the Official Liquidator. This confirmation must verify the acceptance of their bid following the e-sale notice for assets of Hindustan Paper Corporation Ltd (HPCL) issued on October 4, 2023.

The court maintained the earlier interim order and scheduled the next hearing for October 26.

The petition has been filed by 3A Capital Services Ltd and NPPCL against the Union of India and EPFO authorities.

According to the petition, 3A Capital Services became the new management of NPPCL after acquiring its shares in 2023 through an e-auction conducted following the liquidation of HPCL, which had earlier been managing NPPCL.

The company has challenged an EPFO demand raised under Sections 14B and 7Q of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, concerning NPPCL’s provident fund obligations for the period 2009–12.

The petitioners have stated that the principal provident fund amount has already been cleared and that the outstanding demand relates to interest and penalty.

They have also argued that 3A Capital Services was not the employer of NPPCL during the period to which the dues relate and therefore should not be held liable for the earlier obligations.

The petitioners had earlier challenged an EPFO recovery letter dated May 6, 2025, a recovery notice issued in September 2022 and a recovery and attachment order dated July 1, 2025.

In the earlier proceedings, the High Court had stayed the impugned recovery and attachment proceedings pending further hearing.