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TMI Blog2004 (4) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... W PETITION NOS. 1193-1203 OF 2001 IN I.A. NOS. 168-178 OF 1997 IN CIVIL APPEAL NOS. 8530-40 OF 1983 - - - Dated:- 12-4-2004 - S. RAJENDRA BABU, DR. AR. LAKSHMANAN AND G. P. MATHUR, JJ. Raju Ramachandran, Mahendra Anand, A.K. Ganguli, R.F. Nariman, P.Krishnamurthy, Collin Gonsalvas, Rajan Narain, Ms. Puja Sharma, Siddharth Datta, Ms. Louleen Bhullar, K.R. Sasiprabhu, Shahid Rizvi, Manish Garg, Ms. G. Indira, M.K.S. Menon, Rakesh K. Sharma, Ms. Manik Karanjawala, Arun K.Sharma, Ms. Vandana Sharma, V. Pal Singh, Ms. Pratibha Jain, Sushil Kumar Jain, Vinay Garg, Shri Narain, Sandeep Narain, Ms. Anjali Jha, Ms. B. Vijayalakshmi, Menon A. Deb Kumar, Sudarsh Menon, B.S. Sharma, K.V. Mohan, P.H. Parekh, Ms. Ranjeeta Rohatgi, Pramod B. Aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 121 in which the High Court directed that the Official Liquidator should make an application before this Court after impleading the company concerned; that pursuant thereto, he filed an application No. 168-178 seeking for permission to sell the immovable properties of the Company and to disburse the sale proceeds in accordance with law; that to this application none of the unions of the workmen or other workmen were impleaded as respondents nor did the Official Liquidator in course of his application raise any pleading regarding the priority of disbursement of sale proceeds or application of sections 529 and 529A of the Companies Act; that petitioner No. 1 before us is a labour Association representing the workmen of Shri Ambica Mills Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s he would not be in a position to make any payment to anybody including the workmen, except ONGC in view of the order made by this Court in I.A. No. 168-178 in C.A. No. 8530-40 of 1983. Similar letter was also sent to Vatva Industries Mazdoor Sabha on 12.8.1989. The Textile Labour Association received that letter on 6.9.1999. It is only on coming to know from the Official Liquidator that the workmen who are members of the petitioners association would not be able to get their dues, they sought for intervention in the matter. 4 . The basic submission made before us is that the review petitioners were not parties to the proceedings before this Court and on the passing of the winding up order on 17.1.1997 the provisions of the Companies A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o knowledge of the proceedings with the High Court of Gujarat in relation to Shri Ambica Mills filed by Vatva Industries Mazdoor Sabha. The participation of the Vatva Industries Mazdoor Sabha in the High Court of Gujarat was only for the purpose of disbursement of amounts realised from the sale of the finished products and for payment of wages since September 1994 and bonus for 1994-95. It is in these circumstances, it is stated that a direction had been issued by the High Court of Gujarat to the Official Liquidator to make an application for impleading necessary parties and to furnishing copies to them and the Official Liquidator did not implead any of these parties. Therefore, no negligence can be attributed to the writ petitioners in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferential creditors under section 529A to the extent of the workmen dues. The purpose of section 529A is to ensure that the workmen should not be deprived of their legitimate claims in the event of the liquidation of the company and the assets of the company would remain charged for the payment of the workers dues and such charge will be pari passu with the charge of the secured creditors. There is no other statutory provision overriding the claim of the secured creditors except section 529A. This Section overrides preferential claims under section 530 also. Under section 529A the dues of the workers and debts due to the secured creditors are to be treated pari passu and have to be treated as prior to all other dues. 9 . Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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