9911796707
TMI Blog2001 (11) TMI 956X X X X Extracts X X X X X X X X Extracts X X X X ..... s for preferential payment to the workmen as aforesaid are not issued, the court may direct the official liquidator that in the computation of rateable distribution, the outstanding interest claim of the secured creditors on their loans/advances, should not be taken into consideration and the respective instalments of the workmen and secured creditors should be computed with respect to the principal amount of loans/advances as may be found due to the secured creditors. 3. The application A-56 has been disposed of and the prayers were rejected. It appears that due to the resolution of the Bar Association when the advocates are not appearing Sri R.P. Agarwal could not appear and made submission in support of their application, and in thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. v. Rohtas Industries Ltd. [1987] 55 FLR 340; [1989] 74 FJR 155 (SC), ( ii ) Textile Labour Association v. State of Gujarat [1993] 83 FJR 623 (Guj.); [1994] 2 LLJ 303, ( iii ) Mohan Kamalkar Sindgikar v. Joshi Metal Industries [1999] 95 FJR 888 (Kar.) ; [1999] 83 FLR 139, ( iv ) Modi Industries Ltd. v. Addl. Labour Commissioner [1993] 67 FLR 402 and ( v ) E. Sefton and Co. (P.) Ltd. v. Ghanshyam [1998] 80 FLR 649. 6. Sections 529 and 530 of the Companies Act, 1956 ( the Act ), provided for application of insolvency rules in the winding up of insolvent companies, overriding preferential payments in the winding up of the companies and the preferential payments. By Amendment Act 35 of 1985 section 529A was added so t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture, certain or contingent, ascertained or sounding only in damages, against the company, or whereby the company may be rendered liable. This section deals with some of the general power which a liquidator possessed for the purpose of winding up of the company affairs. A going company has powers to compromise, settle or collect the debts and pay out of claim and when the company goes into liquidation it was found equally necessary that subject to the necessary sanction, the liquidator should also have the same powers of compromising, both with creditors and debtors with the sanction of the court. 8. Sri Agarwal has tried to emphasise that this power can be used to settle the claims of the workmen who have been raised to the status of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rohtas Industries Ltd. ( supra ) the court was concerned with wages and emoluments for the period up to closure and a direction was issued that the official liquidator may keep that amount separately and allow the State Bank to adjust the same against its insurance. The observations were reconsidered by the Supreme Court in the same case in Workers of Rohtas Industries Ltd. ( supra ) in which in paras 5 to 7, the Supreme Court observed saying that the order of the court was made under peculiar circumstances and may not be taken as a precedent. Whether the company s assets are sufficient to meet all the liabilities is a matter which was yet to be seen in that case, and what the Supreme Court really intended to say that there were othe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
