HARIGANGA ALLOYS STEEL LTD. Vs. STATE

JUDGEMENT

(1.) THESE 10 Applications are moved by legal heirs of deceased workers of Hariganga Steel and Alloys Ltd. - a Company in liquidation. Their prayer is to direct Official Liquidator to pay to them the amount of dividend as per his notice dated 26/3/2007 without insisting for production of succession certificate. They point out that official liquidator has worked out total entitlement of each worker in the proceeds of Company with him and as declared dividend payable to them at 14%. They state that after winding up orders, the respective worker has expired and being heirs, they are entitled to receive that payment from official liquidator without any succession certificate. Names of legal heirs in 7 Applications are submitted by official liquidator himself to this court along with his report while in remaining 3 matters, claimant - legal heirs are allowed to be brought on record by Division Bench in Company Appeal. During hearing it has also transpired that CAL No. 89 or 114 of 2003 filed by some legal heirs for direction to Official Liquidator to make payment to them with 24% interest are still pending without any orders.

(2.) THE brief details of individual matters are being below. Only in some matters, as per the case of Applicants, there is difference in amount mentioned initially by Official Liquidator and as mentioned in his notice dated 26/3/2007. Necessary details are as under:

(3.) FIRST I find it proper to consider the argument of availability of inherent powers to this Court in the matter of allowing payment to be made to legal heirs by Official Liquidator without insisting on production of succession certificate. Relevant provision is Rule 280 which reads as under: 280. Payment of dividend or return of capital due to a deceased creditor or contributory: Where a claim made in respect of a dividend due to deceased creditor or return of capital due to deceased contributory is Rs. 500 or less, the Official Liquidator may, upon satisfying himself as to the claimant's right and title to receive the dividend or the return, as the case maybe, apply to the court for sanctioning the payment of such a dividend or return to the claimant without the production of a succession certificate or like authority. Where the court sanctions the payment, the Official Liquidator shall make the payment upon obtaining a personal indemnity from the payee. Rule 9 days with inherent powers and it is as under: 9. Inherent powers of Court: Nothing in this Rules shall be deemed to limit or otherwise affect the inherent powers of the court to give such directions or pass such orders as may be necessary for the ends of justice or to prevent abuse of the process of the court.