RUBBER WORKERS UNION Vs. KOTAK MAHINDRA BANK LTD

JUDGEMENT

(1.) The present writ petition has been filed under Articles 226 and 227 of Constitution of India praying for issuance of an appropriate writ, order or direction to the respondent no. 1-Bank to satisfy the claim of 118 workmen of Rs. 6,80,76,355/- before auctioning the assets of the company and claiming first claim on the company's assets in the auction proceedings. Prayer has also been made to restrain respondent no. 1-Bank from confirming the auction of the movable and immovable property of the company and keep the proceeds of the auction safe for disbursement to the workers.

(2.) The case of the petitioner-union is that M/s. Hilton Rubbers Ltd.-respondent no. 2 has filed a reference with the Board for Industrial and Financial Reconstruction (in short 'BIFR') under Section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 (in short 'SICA'). The company was declared sick on 20.04.2000 and Bank of India was appointed as Operating Agency and in the hearing held on 08.07.2003, winding up was confirmed by the BIFR. However, an appeal is pending before the Appellate Authority for Industrial and Financial Reconstruction (in short 'the AAIFR') who, vide order dated 27.01.2005, set aside the order and directed a new operating agency to be appointed and formulate the further revival scheme. However, proceedings under the SICA were still pending and vide order dated 12.10.2009, the BIFR permitted the workers to continue with their recovery suits. A petition under Section 33-C(2) read with Section 33-C(5) of the Industrial Disputes Act, 1947 was filed before the Labour Court, Panipat claiming sum of Rs. 6,80,76,355/-. In the meantime, the bank issued auction notice dated 12.11.2013 (Annexure P-6), which is the subject matter of challenge, as noticed above.

(3.) This Court, vide order dated 03.02.2014, directed the petitioner-Union to file an affidavit as to whether company petition has been registered on the recommendations of BIFR and whether the Company Court is seized of the matter.