2017 (12) TMI 1642 - HC - Indian Laws

Recovery of salary and dues - lockout of the company - Held that - It is directed that the State Government shall submit an evaluation report relating to the entire material which is lying in the factory premises and also for the said purpose - the Official Liquidator is directed to act provisionally attached to this Court and conduct along with the Officers of the State Government the said evaluation thorough evaluation experts and submit the report to this Court on 4.1.2018 - List again on 4.1.2018.

Summary

Issues:
1. Claim for payment of salary and dues by workers of a company under lockout.
2. Evaluation of goods and material in the factory premises for meeting the workers' dues.

Analysis:
1. The writ petition before the Rajasthan High Court involved workers of a company that was locked out in 1998, seeking payment of their salaries and dues. The workers claimed ownership of 59.50% shares, with 20.23% shares held by the State Government. The petition highlighted that goods and material worth over ?35,000,000 were present in the factory premises, which were under the possession of the State Government. The workers proposed that selling these materials could help in partially meeting the pending salary payments. The Court considered the submissions and directed the State Government to prepare an evaluation report for all materials in the factory. The Official Liquidator was instructed to assist in the evaluation process, along with State Government officers and experts, to submit a comprehensive report by 4.1.2018. The Court aimed to use this evaluation to make a decision regarding the release of the workers' salary dues.

2. The primary focus of the judgment revolved around the evaluation of the goods and material present in the factory premises of the company under lockout. The Court recognized the potential of these assets to address the long-pending salary payments of the workers. By directing the State Government to provide an evaluation report and involving the Official Liquidator and experts in the process, the Court aimed to ensure a thorough assessment of the available resources. This evaluation was crucial for determining the feasibility of utilizing the material to meet the workers' dues effectively. The Court's decision to schedule a follow-up on 4.1.2018 indicated the importance of promptly resolving the issue of workers' salary payments through a well-informed assessment of the factory's assets.

This detailed analysis of the judgment showcases the Court's approach towards addressing the workers' claims for salary and dues in the context of a company under lockout, emphasizing the significance of evaluating available resources to facilitate the payment process effectively.