In a decree for recovery passed against your father by a court of law and if the decree holder makes a list of defendant's assets whether still available on his name or devolving on his legal heirs upon his intestate death, the decree holder  may lay a claim for recovery of the amount due from the assets of the judgment debtor.  Therefore if the legal heirs are availing the benefits/assets of the deceased judgment debtor they are liable to repay the debts of the deceased to the extent they have availed the assets. 

As per the rules, PPF enjoys the protection of credit balance from attachment – “Amount standing to the credit of any account holder shall not be liable to attachment under any order or decree of any the court in respect of any debt or liability incurred by the account holder.”

However once the amount has been withdrawn from the PF account and has been held either by the PPF account holder in his bank account or by the legal heirs of the deceased judgment debtor, it becomes the individual amount belonging to the deceased judgment debtor and whosoever is availing the benefit of this assets are liable to repay the debts of the deceased judgment debtor proportionately to the extent of the benefits they actually received/availed. 

Protection does not continue after money gets deposited in bank accounts of legal heirs 

2) protection would not continue if amount is deposited in bank account .recovery order can be enforced

1. Bar on attachment of pension/EPF is removed when the  amount is withdrawn and transferred to other accounts.
2. Where the money borrowed ancestor are not applied on family necessities, legal heirs of deceased borrower are not liable to repay borrowed sum.
3. Under Companies Act, the liability of Company being limited legal heirs of shareholders not liable for amount borrowed by Company.

NO protection available after epf is paid out to the menber.

Similar protection in case of NCLT.

EPF cannot be attached by any court of law under Section 10 of the EPF & MP Act.

Under Section 11 of Pensions’ Act, all pensionary benefits including EPF is exempted from attachment by Court including any Tribunal.

The same law is applicable even for the NCL Tribunal too. 

If the amount lying in the PF trust then it cannot be attached by the tribunal also. 

The only exemption is for the income tax department which can attach the same towards income tax dues 

- The amount in Employee's Provident Fund (EPF) and Employee's Pension Scheme (EPS) are protected under Section 10 of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.

- However , if it already withdrawn and deposited in the bank by the legal heirs, then it is recoverable and can be attached by the court order. 

Yes it's protected

Dear Client,

NCLT observed that any amount due to the workmen/ employees from the provident fund/ pension fund or gratuity is not included within the purview of liquidation asset and under the operation of law, provident fund payable are the deemed assets of workmen/ employees.

It has been clarified that provident fund dues are excluded from the liquidation assets enabling the workmen/ employees to realize their savings as well as the employer's contributions as a part of their fundamental right to life while the right of the creditors is merely a property right. Therefore, the dues in respect of provident/ pension/ gratuity shall not be considered as liquidation asset to be made the provisions of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as "IBC") applicable.

Thank You.