SYED MOHIDDIN Vs. OFFICIAL LIQUIDATOR, MADRAS

JUDGEMENT

(1.) This is an application filed for the purpose of getting permission to implead the Official Liquidator, High Court, Madras, as party respondent in Claim Petition No. 229 of 1969, which is now pending before the Additional Labour Court, Madras. The application is by one of the labourers of the liquidated company called Gannon and Dunkerly. It is under the administration of the Official Liquidator, High Court, Madras. The petition has been filed under S. 446 (1) of the Companies Act, 1956. It states as follows: -

(2.) For the purpose of disposing of the present application, I do not think it is necessary for me to scrutinise both the judgements. According to S. 446 of the Companies Act, leave of this court has to be given for taking legal proceedings against the liquidated company. The present application is for getting one such leave. The claim petition was filed by one of labourers of the company before the Labour Court. If leave is granted it would open the flood gate of litigation before Labour Court and every one of the labourers will be filing petitions before the Labour Court and draw the Official Liquidator to each of these Labour Courts for the purpose of defending the case of the company. The purport and intention of the Legislation seems to be that all these types of claims have to be decided by the Official Liquidator, who is the responsible officer and is vested with the powers to decide such claims. Taking the intendment of the Companies Act, I am of the view that such type of petitions have to be filed only before the Official Liquidator and, if aggrieved, the party concerned has ample opportunity and scope to file an appeal to this court. Taking all these aspects into consideration, I am of the view that the prayer for getting leave of this court to proceed with the petition before the Labour Court is misconceived. In these circumstances, this application is dismissed. It is open to the applicant to withdraw the proceedings before the Labour Court and file the same before the Official Liquidator to get appropriate reliefs.