2014 (10) TMI 1052 - HC - Companies Law

Direction regarding disbursement of the amount - HELD THAT - The Official Liquidator has distributed forms for disbursement pursuant to the said orders. The members of the applicant-Association shall submit back those forms duly filled. In respect of the grievance made by learned advocate Mr.Vasavada that Official Liquidator has been insisting for mentioning the date of the order, it is observed that such incident is uncalled for in asmuch as the directions of the Division Bench are clear and operative, as they stand today. The process of disbursement in compliance of the directions of the Division Bench shall not be haulted - the matter shall stand over to 14th November, 2014.

Summary

Issues: Disbursement of funds to workers as per directions of Division Bench, Official Liquidator's role and obligations, clarification sought by Official Liquidator, compliance with court orders

The High Court of Gujarat addressed the issue of disbursement of funds to workers as directed by the Division Bench in a previous order. The Court noted that the Official Liquidator had deposited the amount with the Registry and was in the process of transferring it to the workers' accounts. The workers' advocate emphasized the timely disbursement of funds, which was not disputed. The Court ordered the matter to be further reviewed on subsequent dates to ensure compliance with the Division Bench's directions. On 1st October 2014, the Court was informed that necessary forms for disbursement had been issued by the Official Liquidator. However, it was mentioned that the Official Liquidator had sought clarification from the Division Bench regarding the directions issued in the previous order. The advocates representing the workers stressed the Official Liquidator's obligation to disburse the funds promptly. The Division Bench's order specified the allocation of funds from the deposited amount for workers' dues and fixed deposit. The Court reiterated the clarity of the Division Bench's directions and instructed the Official Liquidator to continue the disbursement process without delay. The Official Liquidator was directed to pursue the clarification application before the Division Bench promptly. The Court emphasized that compliance with the Division Bench's directions was crucial, subject to any further orders or clarifications from the Division Bench. The matter was adjourned for further review on 14th November 2014 to ensure ongoing compliance and progress in the disbursement process.