Published on : 21 Nov 2025, 12:28 pm 3 min read

The Supreme Court recently held that provident fund dues have priority over all other debts including those owed to banks under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) [ Jalgaon District Central Coop. Bank Ltd. State of Maharashtra & Ors. ].

A Bench of Chief Justice of India BR Gavai and Justice K Vinod Chandran ruled that the Employees’ Provident Funds and Miscellaneous Provisions Act (EPF Act) creates a statutory first charge on an establishment’s assets, which overrides the priority given to secured creditors under Section 26E of SARFAESI.

The Court was hearing appeals filed by the Jalgaon District Central Cooperative Bank after the Bombay High Court d

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