9911796707
TMI Blog1978 (3) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... inning and Weaving Mills Ltd.", Trichur, which was ordered to be wound up by the District Court, Trichur, on January 4, 1954. Two questions were raised before that court by the official liquidator, and both of them related to the disposal of the sale proceeds of the mills, which was sold in public auction and purchased by the Government of Kerala for a total sum of Rs. 23,50,010. Towards the said amount of sale consideration the Government of Kerala had deposited in the District Court a sum of Rs. 5,17,500.50 and filed an undertaking regarding the balance amount as directed by that court. The workmen of the company had preferred claims before the liquidator in respect of amounts due to them by way of wages, leave allowance, notice pay and g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istrict Court on 11th August, 1962, are liable to be disbursed on priority basis, in view of the provision contained in section 230 of the Companies Act. Both the aforesaid findings entered by the court below have been challenged by the appellant in this appeal. On the first point as to the entitlement of the State Government to be treated as a secured creditor standing outside the winding-up, we have no hesitation whatever to uphold the finding of the lower court that the said contention cannot be upheld in view of the fact that the mortgage on which the State Government relies is one executed in its favour by the liquidator during the winding-up proceedings. There is, however, some force in the contention raised by the learned Advocate- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of such amounts will, as already indicated, have to be limited to the period mentioned in those clauses, viz., the period of two months next before the date of winding-up of the company.
The lower court will, therefore, investigate afresh the question as to which of the amounts claimed by the workmen will fall within the scope of clause (b), (c ) and (e) of sub section (1) of section 230 of the Indian Companies Act, 1913, and pass appropriate orders in the matter.
The appeal is allowed, the order of the court below is set aside to the limited extent indicated above and the matter is remanded to the lower court for fresh disposal in the light of the observations and directions contained in this judgment. X X X X Extracts X X X X X X X X Extracts X X X X
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