PRAVIN S SHAH Vs. RASHTRIYA MILL MAZDOOR SANGH

JUDGEMENT

(1.) BY this company application the Union claims following reliefs: -

(2.) MS.Buch appearing in support of this application submits that the order winding up this company, is passed in the year 1983. Even after 22 years, the workers have not received their full terminal dues. She submits that the Official Liquidator has realised a sum of Rs.41.00 crores from the sale of the immovable property of the company, which is a substantial amount. She submits that there are about 2,872 workers. Their claims were invited as early as in 1990. The claims have only been partially settled. She submits that as far as pre-liquidation period is concerned, the issue of payment to the employees is under process inasmuch as the claims have been lodged, they have now been adjudicated and the Liquidator has sought time to make payment in terms thereof. However, as far as post liquidation namely the period after the order of winding up is concerned, the employees are also entitled to interest, if not @ 12% p.a., but at such rate as this Court deems fit and proper.

(3.) ON the other hand, Shri Doctor - learned senior counsel appearing for the Official Liquidator submits that this issue arises in a number of applications. The reliance by learned Single Judge, according to him, on Rule 6 of the Company (Court) Rules, 1959, is clearly misplaced because Rule 6 only deals with Practice and Procedure of the Court and provisions of the Code so far as procedural aspects shall apply to all proceedings under Companies Act. In his submission, by this process and by referring to Rule 6 read with Rule 9, Section 34 of CPC, cannot be invoked in this case. More so, when the Companies Act, 1956 does not provide for payment of interest.