1992 (10) TMI 264 - HC - Companies Law

Summary

Issues:
1. Payment to clerks for preparing workmen's claim statement.
2. Payment of wages in lieu of unenjoyed privilege leave to workmen.

Issue 1: Payment to Clerks for Preparing Workmen's Claim Statement

The Textile Labour Association (TLA) sought payment for clerks who prepared the workmen's claim statement. The secured creditor, State Bank of India, objected to the amount being on the higher side and suggested delaying payment until final orders. The court acknowledged the work done by the clerks but agreed to reduce the payment to Rs. 1500 per clerk, totaling Rs. 12000 for all eight clerks. The Official Liquidator was directed to make the payments promptly.

Issue 2: Payment of Wages in Lieu of Unenjoyed Privilege Leave to Workmen

The TLA argued that under Section 529A of the Companies Act, workmen's dues, including wages for unenjoyed privilege leave, have priority over other debts. The definition of "workmen's dues" includes wages, but the Companies Act does not define "wages." The court referred to the Industrial Disputes Act and Payment of Wages Act for the definition of wages, which encompass remuneration for work done. The court concluded that wages for unavailed leave constitute workmen's dues under the Companies Act, limited to workmen as defined by Section 529(3)(a). The Official Liquidator was instructed to assess and process the workmen's claims for unenjoyed privilege leave wages in compliance with the law.

In conclusion, the court ordered the Official Liquidator to pay the clerks for their work and consider the workmen's claims for wages in lieu of unenjoyed privilege leave. The judgment clarified the definition of wages under the Companies Act, aligning it with labor laws to ensure workmen receive their dues promptly and fairly.