TESTEEL EMPLOYEES COMMITTEE Vs. TESTEELS LIMITED

JUDGEMENT

(1.) THE applicant - TESTEEL EMPLOYEES COMMITTEE through its President Mr. M. J. Shukla, has taken out this Judge's Summons praying for the direction to the Official Liquidator to disburse some amount out of the funds lying in the account of the Company in liquidation to the workers of the Company in liquidation on adhoc basis.

(2.) AN affidavit in support of the Judge's Summons is filed by Mr. Shukla and submitted that the applicant Union had initiated proceedings to recover the dues of the members of the Union before various forums including the Labour and Industrial Tribunal. The applicant Union had also lodged its claim before the Official Liquidator and thereby the said claim was verified by the Chartered Accountant Shri A. J. Shah by way of his report dated 16. 04. 2007. In the said report of the Chartered Accountant, it has been verified that the amount due towards workmen is to the tune of Rs. 6,32,70,926/- which constitutes 30% of the cliam of the workmen and the rest of the 70% of the claim works out to Rs. 6,61,53,870/ -. The said report was based upon the order of the Labour and Industrial Tribunal dated 21. 07. 2006 whereby the reference of the workers was partly allowed by the Labour and Industrial Tribunal. The said order of the Labour and Industrial Tribunal was challenged by the applicant Union before this Court which is pending adjudication. It is, therefore, submitted that the dues of the workers have been crystalized and admitted and remained unchallenged to the extent of 30%.

(3.) MR. Utkarsh Jani, learned advocate appearing for the applicant has submitted that the applicant Union had preferred Company Application No. 213 of 2007 before this Court and vide order dated 29. 06. 2007, this Court while disposing of the said Company Application directed the Official Liquidator to disburse an amount of Rs. 1,37,50,000/- provisionally amongst 550 workers @ Rs. 25,000/- each to each of the workers on adhoc basis. The amount of Rs. 5 Crores was also disbursed to the Secured Creditors pursuant to the said order of this Court. The Official Liquidator as on date is having very substantial fund in the account of the Company in liquidation and hence, the present application is moved to seek further adhoc disbursement of amount which is deemed fit by this Court. The workers of the Company in liquidation have not received their dues for the last 18 years and hence, the application moved on behalf of the workers is required to be considered sympathetically. The entire movable assets of the Company in liquidation have already been sold and the consideration thereof has been received by the Official Liquidator. The immovable properties of the Company in liquidation are yet to be sold and the said immovable properties are likely to fetch more than Rs. 12 to 13 Crores as and when the said properties shall be put to auction. He has, therefore, submitted that appropriate order with regard to adhoc disbursement should be passed by this Court.