2021 (3) TMI 1383 - SC - Companies Law

Application for withdrawal of company petition - litigation involving the liquidation and winding up of the Baranagore Jute Company has been pending for almost 30 years - direction to pay the worker dues - HELD THAT - The amount is directed to be released but however it is found important to have the amount crystallized and the persons to whom the amount to be paid identified before the said amount is released. In addition to the above application, persons who claim to be the legal heirs of the partners of a partnership firm, which was the petitioning creditor(s) have also filed an application for withdrawal of the main company petition - the application for withdrawal of the company petition would have to be made before the Calcutta High Court, as there may be other persons interested in the proceedings. SLP disposed off.

Summary

Issues:
1. Liquidation and winding up of Baranagore Jute Company
2. Payment of workers' dues
3. Application for withdrawal of main company petition
4. Jurisdiction of Calcutta High Court

Analysis:
1. The Supreme Court addressed a long-pending litigation concerning the liquidation and winding up of the Baranagore Jute Company. An application was filed by the Baranagore Jute Mills Employees Union seeking direction for the payment of workers' dues. The management, represented by senior counsel Shri Vikas Singh, expressed no objection to releasing the dues, citing that interest rates under labor welfare legislations are higher than the interest earned on the deposited amounts. However, the Court decided that the amount should be crystallized and the recipients identified before release, directing the Calcutta High Court to oversee this process.

2. Legal heirs of the partners of a partnership firm, who were petitioning creditors, also filed an application to withdraw the main company petition. Senior counsel Shri P.S. Narasimha informed the Court that the amounts due to the petitioning creditors had been satisfied, and they no longer had any claim over the company's assets. Seeking leave to withdraw the petition, it was decided that this application should also be presented before the Calcutta High Court due to potential interests from other parties involved in the proceedings.

3. The Supreme Court emphasized that all applications related to the case, including those for the withdrawal of the company petition, should be submitted to the Calcutta High Court for resolution within fifteen days. Acknowledging past recusals by various benches, the Court urged the Chief Justice of the Calcutta High Court to expedite the disposal of the matter. The order was made accordingly, leaving all contentions open and prioritizing the consideration of the workers' dues release application in case of any delays.

4. The special leave petition was disposed of, and any pending applications were also deemed resolved as per the Supreme Court's directive, emphasizing the need for expeditious proceedings and decision-making by the Calcutta High Court to address the complex issues surrounding the liquidation, workers' dues, and withdrawal of the main company petition effectively.