Section 34(2) in The M.P. General Provident Fund Rules, 1955
(2)In cases where the subscriber or nominee is willing to repay the amount due to Government, the best course would be to treat the repayment as second transaction. The whole of the money should first be paid intact and without any compulsion. Thereafter the payee may be called upon to make good the Government dues.(b)In view of the express provision in Section 3 of the Provident Funds Ac);, 1925, that the balances in the fund shall be free from any liability incurred by the subscriber or the dependant before the death of the subscriber, it has been decided that the immunity provided by Section 3 (1) of the said Act against deductions from accumulations in a provident fund of any debt incurred or liability owed does not extend to the liabilities incurred by the subscriber's nominee after the subscriber's death. The provident fund balances vesting in a dependant are thus liable to attachment for debts incurred by the dependant after the subscriber's death and where such debts are due to the Government by whom the balances are payable, they could be set off against such balances under the general law relating to the setting off of claims and counter-claims between the two parties.Procedure Rules
