In Brief
An Asset Reconstruction Company sought to recover sale proceeds from auctioned properties of a defaulting employer, but EPFO claimed priority under provident fund law. The Supreme Court held that the High Court erred in dismissing the case without examining the conflicting priority claims between EPFO (claiming statutory first charge) and secured creditors like Axis Bank (claiming priority under SARFAESI Act). The Court remitted the matter for proper determination of priority, requiring all creditors to be impleaded and heard, with consideration of when charges were created relative to the property sales.
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