STATE BANK OF HYDERABAD INDUSTRIAL ESTATE BRANCH SANATHNAGAR Vs. OFFICIAL LIQUIDATOR HIGH COURT OF ANDHRA PRADESH

JUDGEMENT

(1.) The question is whether the order of the Official Liquidator whereby the wages of the workmen have been quantified can be challenged by the creditors secured or unsecured in the Company Court?

(2.) Krishi Engines Limited has been ordered to be wound up in CP 14/1987 on 16-11-1991 by this Court. The Official Liquidator filed CA 214 of 1996 for permission to invite the claims from the workmen of the Company in liquidation by making advertisement in local newspapers. On 3-12-1996 the application was ordered and the Official Liquidator was permitted to invite the claims of the workmen by publishing the notice in AP Times, an English daily, and Andhra Jyothi, a Telugu daily. The last date for receipt of the claims from the workmen was fixed as 31-12-1996.

(3.) The Official Liquidator in pursuance of the aforesaid order invited the claims from the workmen. The workers' union through its Joint Secretary filed a consolidated claim of all the workmen in the office of the Official Liquidator within the stipulated time. Thereafter the Official Liquidator issued notice to all the secured creditors including the petitioner-State Bank of Hyderabad -and the Bank took part in the proceedings and submitted its objections. The Official Liquidator on 15-4-1997 rejecting the objections of the petitioner-Bank, quantified the wages of the workmen at Rs.2,70,77,482.30 with interest at the rate of 4 percent per annum from 16-11-1991 as secured debt due to the workmen ranking part with the secured creditors including the petitioner-Bank.