Section 34(2)(b) in The M.P. General Provident Fund Rules, 1955
(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.