2020 (2) TMI 1532 - HC - Companies Law

Permission to transfer the monies payable to the workmen, to the Provident Fund Commissioner concerned - HELD THAT - The monies are required by the workmen now. Their need is immediate. Therefore, respondent no. 2 is directed to pursue the matter with HDFC Bank to ascertain the status of the investments as well as to see as to how the same could be statutorily transferred to the Provident Fund Commissioner at the earliest for disbursal to the workmen. Respondent no. 2 shall also follow up with UCO Bank and RBI apropos the amount of ₹ 30 crores alongwith interest accrued. An affidavit of compliance shall be filed by respondent nos. 2 and 3 before the next date. There is no threat of the eviction of the workmen from their current places of residence. No further orders are required in this regard. List on 25.03.2020.

Summary

Issues:
1. Distribution of monies to workmen under separate scheme managed by EPFO.
2. Release of funds deposited with banks for immediate disbursal to workmen.
3. Compliance with NCLT order for exploring compromise scheme by Official Liquidator.

Analysis:
1. The petitioner's counsel highlighted that approximately ?550 crores are payable to the workmen, with ?200 crores already deposited towards the Employees' Provident Fund (EPF) and managed separately. Out of this, ?130 crores were invested in securities by HDFC Bank, ?37 crores transferred to the Regional Provident Fund Commissioner, and ?30 crores deposited with UCO Bank. The Reserve Bank of India was requested by UCO Bank to transfer the funds to the Provident Fund Commissioner.

2. The Official Liquidator's counsel mentioned documents attached to an affidavit and granted three weeks to EPFO-respondent no. 3 to file a counter-affidavit regarding the release of the ?37 crores plus accrued interest to the beneficiaries/workmen. The urgency was emphasized due to the workmen's prolonged lack of payment, with some having passed away. The court directed respondent no. 2 to liaise with HDFC Bank to expedite the transfer of investments to the Provident Fund Commissioner and to follow up with UCO Bank and RBI concerning the ?30 crores with interest.

3. Respondent no. 2 was instructed to explore a compromise scheme as per the NCLT order, leading to the decision not to act on the eviction notice. This decision ensured that there was no imminent threat of workmen being evicted from their residences. The court scheduled the next hearing for compliance updates and further proceedings on 25.03.2020.