IN THE MATTER OF : ASANSOL DURGAPUR DEVELOPMENT AUTHORITY Vs. THE OFFICIAL LIQUIDATOR, HIGH COURT, CALCUTTA

JUDGEMENT

(1.) These matters have remained pending for a long time and were assigned to this Bench, released and taken up again at the behest of the parties.

(2.) The short question that arises is whether certain fixed deposit receipts, Kishan Vikash Patra certificates and cash deposited by the erstwhile employees of the company (in liquidation) with the company prior to its liquidation are liable to be refunded to such erstwhile employees or to their order; or they are to be dealt with in accordance with law by the Official Liquidator. The point urged by the erstwhile employees through their associations as applicants is that the property in the fixed deposits or the certificates or the monies did not pass to the company or the company (in liquidation) and, as such, they have to be returned to the depositors named in the documents or the owners of the KVP certificates or the persons who deposited the monies and not appropriated in any other manner.

(3.) Indeed, the erstwhile employees, or their associations, and the Asansol Durgapur Development Authority entered into an agreement without reference to the company (in liquidation) or the Official Liquidator or the secured creditors of the company (in liquidation) by which it was agreed that the deposits would be made over to ADDA as the virtual nominee of the erstwhile employees who had made the deposits or kept the certificates with the company. It is not necessary to recount how an order was obtained from the Company Court without reference to the secured creditors of the company (in liquidation), though it was, fortunately, undone before the amounts covered by the FDRs, the certificates and the cash deposits could be appropriated or taken away by ADDA.