Madras High Court
The Branch Manager vs The Recovery Officer on 26 November, 2025
WP No.37473 of 2024
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 26.11.2025
CORAM
THE HON'BLE MR.MANINDRA MOHAN SHRIVASTAVA,
CHIEF JUSTICE
AND
THE HON'BLE MR.JUSTICE G.ARUL MURUGAN
WP No.37473 of 2024
and WMP No.40503 of 2024
The Branch Manager,
M/s.City Union Bank,
(Credit Recovery and Management Department),
Tirupur Branch, No.94-94(1), Court Street,
Tirupur 641 601.
Admn. Office at:
No.24-B, Gandhi Nagar,
Kumbakonam 612 001. .. Petitioner
-vs-
1. The Recovery Officer,
Employees Provident Fund Organisation,
& Regional PF Commissioner-II,
District office, No.497,1st Floor,
M/s.Muthusamy & Bros Industrial Complex,
Palladam Road, Tirupur 641 604.
2. The District Registrar,
(Tirupur), District Registrar Office,
No.1/3, Vignesh Complex,
Ground Floor, PN Road, Tirupur 641 602.
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WP No.37473 of 2024
3. The No.1-Joint Sub-Registrar,
(Tirupur), No.1-Joint Sub-Registrar
Office, G.N.Garden Bus Stop,
Thottathu Palayam,
Tiruppur 641 666, Namakkal 637 001. .. Respondents
Prayer: Petition filed under Article 226 of the Constitution of India for
issuance of a Writ of Certiorarified Mandamus to call for the records
and quash the impugned Prohibitory Order “(EPF CP-3) of No.CB/CBE/
DO-TPR/RECOVERY/CBCBE86866/DIV-22/2023-24/2846, dated
12.09.2023” of attaching the schedule mentioned property passed by
the 1st respondent and direct the respondents 2 and 3 to lift the
attachment created over the schedule mentioned properties on the
basis of the impugned Prohibitory Order “(EPF CP-3) of No.CB/CBE/
DO-TPR/RECOVERY/CBCBE86866/DIV-22/2023-24/2846, dated
12.09.2023” of the 1st respondent.
For Petitioner : M/s.Rekha Sivakumar
For Respondents : Mr.R.Vishnu
for R-1
: Mr.K.Karthik Jagannath
Govt. Advocate for RR 2 and 3
*****
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WP No.37473 of 2024
ORDER
(Order of the Court was made by the Hon'ble Chief Justice)
Challenge to the prohibitory order issued by the Employees
Provident Fund Organisation/first respondent on 12.09.2023 and
further proceedings of attachment of the schedule mentioned property
is assailed mainly on the submission that in view of the provisions
contained in Section 26(c) of the SARFAESI Act, the dues of the
secured creditor will have priority over the statutory dues under the
Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (in
short ‘EPF and MP Act’).
2. The issue raised in this petition is no longer res integra and
stands concluded by the recent judicial pronouncement of the Hon’ble
Supreme Court in the case of Jalgaon Di Central Coop Bank
Ltd. vs. State of Maharashtra and Ors., (SLP (C) No.27740 of
2011) dated 20.11.2025, wherein the Hon’ble Supreme Court has
categorically ruled that between the dues of a secured creditor payable
under the SARFAESI Act and the dues recoverable under the EPF & MP
Act, the statutory dues under the EPF & MP Act constitute first charge.
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It was held as below:
“ 28. On the above reasoning, we find that the
workmen’s dues which also has not been quantified as of
now cannot have any priority over the claim raised by
the secured creditor, the Bank, which is conferred a
priority under Section 26-E of the SARFAESI Act.
However, from the proceeds of the sale of the assets, the
first charge would be for the dues under the EPF&MP
Act which includes not only the contribution payable but
also the interest, penalty and damages if any imposed.
Hence, the sale proceeds have to be first applied in
satisfaction of the dues under the EPF&MP Act and
then in satisfaction of the secured debt of the appellant-
bank.
29. On the above reasoning, we cannot but partly
set aside the impugned judgment and the directions
therein. The appellant-bank would be entitled to
proceed with the auction, if not already proceeded with
and from the proceeds received in auction, first the dues
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under the EPF&MP Act will have to be satisfied and
then the debts due to the appellant Bank. We would only
leave liberty to the workmen to approach the
appropriate authority under the MRTU & PULP Act by
an application to determine the dues, which shall be
considered de hors the order rejecting the same on the
ground of delay and de hors the delay caused as such.
Such determination would be necessitated if there is any
amount remaining after satisfaction of the provident
fund dues and that of the secured creditor.”
Therefore, in view of the above, the challenge to the proceedings
drawn by Provident Fund authorities cannot be faulted.
3. At this stage, learned counsel for the petitioner/Bank would
submit that they are prepared to satisfy the statutory dues under the
EPF & MP Act by paying the amount to the Provident Fund authorities
so that the mortgaged property may be released and the bank may
proceed to sell the same towards recovery of its dues.
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3.1. Learned counsel for the Provident Fund Organisation would
submit that it is open for the bank to satisfy the entire dues by making
payments, in which eventuality, the Provident Fund authorities shall
release the property from attachment.
Recording the above submission, this petition is disposed of.
There shall be no order as to costs. Consequently, the interim
application stands closed.
(MANINDRA MOHAN SHRIVASTAVA, CJ.) (G.ARUL MURUGAN, J.)
26.11.2025
Index : Yes/No
Neutral Citation : Yes/No
sra
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To
1. The Recovery Officer,
Employees Provident Fund Organisation,
& Regional PF Commissioner-II,
District office, No.497,1st Floor,
M/s.Muthusamy & Bros Industrial Complex,
Palladam Road, Tirupur 641 604.
2. The District Registrar,
(Tirupur), District Registrar Office,
No.1/3, Vignesh Complex,
Ground Floor, PN Road, Tirupur 641 602.
3. The No.1-Joint Sub-Registrar,
(Tirupur), No.1-Joint Sub-Registrar
Office, G.N.Garden Bus Stop,
Thottathu Palayam,
Tiruppur 641 666, Namakkal 637 001.
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THE HON'BLE CHIEF JUSTICE
AND
G.ARUL MURUGAN, J.
(sra)
26.11.2025
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