2008 (9) TMI 1004 - HC - Companies Law

Summary

Issues involved:
The judgment deals with the priority claim of the Employees' Provident Fund Organisation seeking payment of the employers' and employees' contributions from companies in liquidation.

Summary:

Issue 1: Priority claim of Employees' Provident Fund Organisation
The appeals filed by the Employees' Provident Fund Organisation sought priority in relation to the unpaid contributions by the erstwhile management of companies in liquidation. The organisation argued that it acts as a trustee of the workers' funds and should be equated with the workers' claim under Section 529(A) of the Companies Act, 1956. The court noted that the controversy had been previously addressed in a Division Bench judgment and upheld the priority claim of the organisation.

Issue 2: Compliance with directions
The Official Liquidator was directed to comply with certain directions within a specified timeframe. The advocate for the Official Liquidator submitted a communication confirming compliance within the given timeline. The appellant's advocate requested time to consider initiating contempt proceedings, but the court rejected the request, stating that the decision on contempt proceedings was independent of the pending appeals. The court summarily dismissed the appeals, noting that they did not merit acceptance in the circumstances of the case.