9911796707
TMI Blog2003 (1) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... 00,000 has been realised. It was further stated that the claim of 607 workmen of the Star of Gujarat Mills Co. Ltd. (In Liq.) has already been lodged with the Official Liquidator. It was further stated that since the amount of Rs. 1,50,00,000 was lying with the Official Liquidator and since the land and building of the said Mills Company were yet to be sold the amount which was already realised may be directed to be paid to the workmen towards their dues. Along with the said Affidavit a report of workers due payment prepared by one Mr. Nikhil Shah was produced. 3. In response to the above Judge s Summons, the Official Liquidator has filed his report on 4-9-2000 stating that he has appointed Mr. R. Choudhary Associates, Chartered Accountants to verify the claim of the workers and after verification by the said Chartered Accountant the amount was reduced to Rs. 4,89,03,920. He has further submitted that the secured creditors have not furnished their claims duly verified/certified by their Chartered Accountants as on the date of winding up, i.e. , 14-6-1999. The Central Bank of India, who is one of the secured creditors and impleaded as respondent No. 2 in the present applicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stated that the Chartered Accountant appointed by the Official Liquida- tor has submitted his verification report to the Official Liquidator vide his letter dated 18-7-2000 to the tune of Rs. 4,89,83,919.10 ps. It was further stated in the said report that the bank vide its letter dated 19-1-2001 has forwarded a reconciliation statement of workers claim submitted by the Chartered Accountant of the Official Liquidator and the Chartered Accountant of the bank. It was further stated by the Official Liquidator in his report that there was discrepancy as regards the date up to which the debts were to be calculated and other discrepancies were also noticed. It was further stated that the Chartered Accountant of the bank has calculated the claims of workers as on the date of closure of the said company, i.e. , 28-4-1998 whereas the Chartered Accountant appointed by the Official Liquidator has calculated the claims of the workers upto the date of the appointment of Official Liquidator as Provincial Liquidator, i.e. , 14-12-1998. However, in both the reports the calculation of workers dues was made on the basis of the strength of 529 workers as against the strength of 607 workers sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any priority to receive amount. 8. Industrial Investment Bank of India Ltd., the respondent No. 3 herein has also filed its affidavit-in-reply on 5-12-2001 raising a dispute with regard to the actual number of workers entitled to claim dues as per sections 529 and 529A of the Companies Act, 1956. It was stated that as per the report of the Official Liquidator, the claim of 607 workers amounted to Rs. 4,89,03,919.10 ps. Based on the said claim the ratio as calculated by the Chartered Accountants came to 17.44 per cent of the total amount to be distributed from realisation of assets of the Mills Company as per the provision of sections 529 and 529A of the Act. It was further submitted that the total number of 607 workers as claimed by the Textile Labour Association was not at all verified by the Official Liquidator and Chartered Accountants and without any application of mind mechanically calculated the claim and ratio for the purpose of pari passu distribution between secured creditors and the workers. It was further submitted that the Board for Industrial Financial Reconstruction, by consent of all the secured creditors and workers of the Mills Company in liquidation had s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... staff were to be retrenched. However, in reality 246 workers/members of the staff were actually retrenched prior to the winding up of the company. As per the say of T.L.A., if the total strength of workers was 607 then in the event of retrenchment of 246 workers, the actual claimant-workers would be much less than 482 calculated by the Chartered Accountant of Central Bank of India. Hence, I am surprised that how T.L.A. has made a claim of entire set of workers i.e. all 607, though substantial number of workers had already got their statutory retrenchment compensation decided under a scheme. Exaggerated or false claims evaluated or calculated without ascertaining correct facts available on record would affect the ratio and the entitlement of amount by Financial Institutions and Secured Creditors and it would give scope to unauthorised persons to pocket same. Therefore, to bring the correct set of facts on record, the Official Liquidator is directed to submit his report clarifying all these confused contingency and conflicting figures on record..." 10. Pursuant to the directions given in the said order, the Official Liquidator has filed his report on 8-8-2002 wherein it is sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 per cent As per the Chartered Accountants appointed by Central Bank of India Sr.Name of the creditorAmount in Rs.Ratio 01Central Bank of India16,02,04,845.7459.62 per cent 02IIBI6,46,23,683.0024.05 per cent 03Textile Labour Association4,38,73,468.0116.33 per cent Total26,87,01.996.75100.00 per cent The IIBI, respondent No. 3 herein, however, submitted vide their letter dated 10-7-2002 that in terms of the Rehabilitation Scheme approved by BIFR, the management had paid retrenchment compensation to 250 workers out of 607 workers and did not have any authority to absorb 105 workers thereafter. It was therefore submitted by them that it would be necessary to ask the erstwhile management to explain this lapse and that Central Bank of India s dues in respect of WCTC 1 and 2 and rehabilitation term loan are secured by pari passu term loan, i.e. , first charge on the fixed assets of the company. 11. Heard Mr. D.S. Vasavada, ld. advocate appearing for the applicant-association, Mr. Panesar, ld. advocate appearing for the Central Bank of India, Mr. Sandeep Singhi, ld. advocate appearing for IIBI, and Mr. Roshan Desai, ld. advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers and thereafter the further order with regard to determination of ratio as well as disbursement of the amount can be passed. 12. I have heard the learned advocates appearing for the respective parties at length and I have also gone through the Company Application, Report filed by the O.L., as well as the Affidavits-in-Reply filed by the respondents. I have also perused the three different reports prepared at the behest of the applicant-association, the Official Liquidator as well as the Central Bank of India. One thing is very clear that the claim put forward by the applicant-association on the basis of the strength of 607 workmen cannot be entertained and accepted as the necessary details are not there even in the report prepared at the behest of the applicant-association. The first and foremost question which is left for determination to this Court is as to whether the strength of workmen was 529 are even less than that. The another question, which is required to be decided, is as to whether the applicant-association s claim seeking direction to pay an amount of Rs. 5,15,76,953 to the workmen of the Mills Company can be adjudicated and decided at this juncture, as at prese ..... X X X X Extracts X X X X X X X X Extracts X X X X
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