BANK OF CHINA Vs. STATE

JUDGEMENT

(1.) THESE are five appeals under Rule 164 of The Companies (Court) Rules, 1959, against the decision of the Official Liquidator rejecting the claims of the appellants to various sums of money to which they claim to be entitled by reason of termination of their services under the Bank of China (in liquidation),

(2.) THE appellants were employees of the Bank of China now in liquidation, the winding up order having been made on December 10, 1962. They claimed before the Official Liquidator that the Bank of China (hereinafter called the Bank) was indebted to them in respect of annual allowance, leave pay, notice pay, gratuity and compensation for discharge and/or retrenchment and special gratuity.

(3.) THE Liquidator has admitted and allowed one item of the claim advanced on behalf of the appellants, viz. , annual allowance for 1962. The Liquidator has also admitted the amount of Staff Provident Fund but has declined to entertain individual claims in respect of the same. The Liquidator has also rejected the claims for payment of retrenchment compensation, salary in lieu of the notice for retrenchment, special gratuity and approved holiday remuneration. The claim for annual allowance for 1962 has been admitted by the Liquidator as a preferential claim under sec. 530 of the Companies act, 1956 and the appellants have been adjudged to be preferential creditor in respect of the said claim.