2018 (2) TMI 2118 - SCH - Income Tax

Implementation of the severance package - approval of VRS package for the employees of wound up company employees - income tax recoverable from severance package - Appellant Company was declared as a Sick Industrial Company and the Board for Industrial and Financial Reconstruction (BIFR) recommended the winding up - As decided by HC 2017 (6) TMI 1396 - MADRAS HIGH COURT company is facing the burden of winding up and other aspects, if there is any claim other than the Central Government Scheme, then it could be delayed elsewhere. Order of the learned Single Judge modified to the effect that there is no burden on the company to that extent. So far as the liquidation proceedings is concerned, the first charge over the assets of the company will be on the Central Government since they step into the shoes of the workmen by taking over to discharge the burden of the company by way of VRS Scheme and for the remaining charge is concerned it is for the liquidator to decide on the issue - we dispose of the appeal filed by the Company, modifying the order of the learned Single Judge. Two months time is granted to the Central Government to implement the VRS Scheme from the date of receipt of this order. HELD THAT - No ground for interference is made out in exercise of our jurisdiction under Article 136 of the Constitution of India. SLP is accordingly dismissed. Pending application, if any, stands disposed of.

Summary

The Supreme Court of India dismissed the special leave petition, stating no grounds for interference under Article 136. The application for intervention was dismissed, and any pending application was disposed of. The Court clarified that benefits should be given at par as given to others.