TEXTILE LABOUR ASSOCIATION Vs. OFFICIAL LIQUIDATOR AND OTHERS

JUDGEMENT

(1.) The Textile Labour Association has moved this application for directing respondent No. 1, i.e. the Official Liquidator to pay to the workmen their dues of Rs. 24,03,366-55 being the amount payable to them in lieu of unenjoyed privilege leave standing to their credit, and also for directing the Official Liquidator to pay by way of remuneration Rs. 2,000.00 to the clerks, who had prepared the statement of claim of the workmen at the instance of the Court.

(2.) So far as payment to be made to the clerks is concerned, the objection which has been raised on behalf of the secured creditor i.e. the State Bank of India, is that the amount of Rs. 22,000.00 is on a higher side. It was also submitted that this amount being in the nature of costs, should be ordered to be paid only at the end, that is when the final orders are passed in the winding-up petition. As it was difficult for the workmen to prepare the statement of claim and the Official Liquidator also would have been put to much trouble, it was suggested to the TLA that they should get the said statement prepared. It is pursuant to the suggestion made by the Court that the said statement was prepared with the help of eight clerks. Therefore, there is no reason why an order for making payment to them should not be made at this stage. However, I find that there is some substance in the other objection raised on behalf of the secured creditor. Considering the nature of the work and the time taken in preparation of the said statement, I am of the opinion that it would be proper if each clerk is paid Rs. 1500 for the work done by him. In all eight clerks prepared the said statement and, therefore, the Official Liquidator is directed to pay Rs. 1500 to each clerk i.e. Rs. 12000 in all to them towards their remuneration for preparing the said statement.

(3.) As regards the wages payable in lieu of unenjoyed privilege leave, it was submitted by Mr. Vasavada, learned advocate appearing for the TLA, that under Sec. 529A of the Companies Act, workmen's dues are given priority along with the dues of the secured creditors over all other debts. He submitted that the workmen's dues would include wages payable to them in lieu of unavailed privilege leave standing to their credit and which has not lapsed. This provision of Sec. 529A is to apply notwithstanding anything contained in any of the provisions of the Act, or any other law, for the time being in force. The expression "workmen's dues" is defined by Sec. 529. According to that definition, workmen's dues in relation to a company means the aggregate of the sums specified in clause (b) of sub-section (3) of that section, due for the company to its workmen. One of them is wages. The word "wages" is not defined by the Companies Act. However, my attention was drawn to the definition of the word "wages" in the Industrial Disputes Act and the Payment of Wages Act. Sec. 2(rr) of the Industrial Disputes Act, defines "wages" as under :