RELIANCE INDUSTRIES Vs. PODAR SILKS AND SYNTHETICS LTD

JUDGEMENT

(1.) THIS order will dispose of Official Liquidator's Report dated 11-10-96 and Official Liquidator's resubmitted report dated 9-10-97 and all the applications listed at Sr. Nos.29 to 314 i.e. Company Application Nos.99 to 115 of 1996, 139 to 149 of 1996, 281 to 332 of 1996, 347 to 402 of 1996, 616 to 621 of 1996, 62 of 1996, 629 to 688 of 1996, 705 to 709 of 1996, 749 to 752 of 1996, 812 to 814 of 1996, 838 to 849 of 1996, 857 to 858 of 1996, 881 to 885 of 1996, 924 to 931 of 1996, 934 and 935 of 1996, 41 and 42 of 1997, 137 to 143 of 1997, 198 of 1997, 221 of 1997, 240 and 241 of 1997, 250 to 269 of 1997 and 276 to 284 of 1997. All the applications are identical. They are claimings identical relief. Identical affidavit in support of the applications have been filed. The prayers in these applications are as follows:

(2.) FOR the purposes of this order, the facts are taken from Company Application No.99 of 1996. In the affidavit in support it is stated that the applicant is one of the workmen of Podar Silk & Synthetics Limited (the Company in liquidation) which has been ordered to be wound up by orders of this Court dated 18th December, 1985. Although the winding up order was passed on 18th December, 1985, the Official Liquidator did not take any step to realise the assets and distribute the legal dues for quite some time and only as recently as about two to three years back he initiated steps to dispose of the assets of the Company in liquidation and called for claims from workmen against the said Company. Thus interest is claimed at the rate of 18 per cent on the amounts due and payable. It is also stated that the Liquidator has disposed of the property of the Company for a sum of Rs. Four crores and fifteen lakhs. This amount has not been accounted for. The affidavit further states that the wages for 18 days i.e. from 1-12-1985 till 18-12-1985 have not been paid. It is further stated that the Liquidator has not allowed the bonus, retrenchment compensation and gratuity for 1985 on the ground that the service for that year is not proved. The workmen, according to the affidavit, lodged their claims on account of the terminal benefits but were at the same time-claiming that liquidation is bad till 1990. It is stated that Justice Shah in Company Application Nos.361 to 390 of 1995 directed the Official Liquidator by order dated 26th April, 1995 to reinvestigate the claims of the workmen but the Liquidator has not taken any step to call for information and to re-examine the claim as per the orders of the Court. Thus, it is submitted that the Liquidator has acted in contempt of the orders of the Court.

(3.) AS noticed earlier, the Company in liquidation was ordered to be wound up by this Court on 18th December, l985 on a creditor's petition. The Company had various secured creditors having a claim of Rs.437 lacs. The immovable property of the Company was put up for sale by auction by the Court Receiver. M/s. Spatio Land Development Pvt. Ltd. (hereinafter referred to as "the Auction Purchaser"), have purchased the immovable property. The aforesaid purchase has been approved by the Supreme Court by its order dated 14th November, 1994. The Supreme Court has observed as under: