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TMI Blog2004 (12) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court or as may be deemed fit and proper by this Court. 2. Heard Mr. A.L. Shah, learned advocate appearing for the applicants and the Official Liquidator. 3. Mr. Shah has submitted that the applicants are employed in the office of the Official Liquidator, as company paid staff. There are two types of employees working in the office of the Official Liquidator in various High Courts including the office of the Official Liquidator attached to this Court. One type of employees consists of those employees, who are in the employment as employees of Central Government, Department of Company Affairs. The other set of employees are those persons who are not employees of the Government of India, Department of Company Affairs, but who are employed by the Official Liquidator as special or additional staff to help him in the work of liquidation. He has further submitted that this other set of employees is employed by the Official Liquidator under Rule 308 of the Companies (Court) Rules, 1959. They are known as company paid staff and are not the employees of the Government of India, Department of Company Affairs. The Official Liquidator maintained funds for payment of salary, etc. to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1998 and Civil Appeal No. 5677 of 1994 [JT 1999 (6) S.C. 364], the Hon ble Supreme Court has observed that the High Courts have found that the Company Paid Staff have been discharging the duties from years together without any break identical to that of the Government Paid Staff in the same Liquidator s office. It was also found that the Company Paid Staff working both under the Court Receiver and in the office of the Official Liquidator were grossly under Paid and they have no retiral benefits even after working for 10-25 years. The Hon ble Supreme Court held that it was unable to agree with the contention of the Counsel of the appellants being Central Government/Liquidators that the Company Paid Staff cannot be absorbed/regularised as they were not employed by the Government in accordance with the Rules. The Hon ble Supreme Court has further observed that the orders of the High Courts challenged in the said appeals did not call for any interference. 5. Mr. Shah has further submitted that following the Judgment and order of the Hon ble Supreme Court dated 27-8-1999, the Bombay High Court in Misc. Company Application No. 24 of 1994 by its judgment and order dated 18-8-2001 pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quidator throughout India against Group "C" posts. Based on the said Scheme, the Regional Director interviewed the Company Paid Staff for absorption into Government service on 23rd and 24th December, 1999 and prepared a penal of Company Paid Staff. As and when vacancies arose, they are considered for absorption. The Official Liquidator has further submitted that the office of the Official Liquidator, Mumbai cannot be compared with the office of the O.L., Ahmedabad, in so far as Reserve Fund created from the investment income of the Official Liquidator is concerned. The orders passed by the Bombay High Court are not applicable to the Company Paid Staff in Ahmedabad. He is taking all efforts to give proper emoluments and benefits to the Company Paid Staff keeping in view the fund position and length of service of the respective staff and also to protect the interest of general body of creditors and contributories. The pay of the Company Paid Staff was last revised by the Official Liquidator after obtaining the approval of the Hon ble Company Judge on 23-10-1996. The Company Paid Staff are being Paid dearness allowance on par with the Central Government employees and in addition to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany Paid Staff working with him is rendering services not to a particular Company in Liquidation but in respect of the office of the Official Liquidator and in respect of various Companies in liquidation, the reserve fund created by him must be utilised inter alia for the purpose of paying salaries, bonus and other monetary benefits to Company Paid Staff. 10. Mr. Shah has furnished certain statements showing calculations of amount of difference to be paid to the Company staff in respect of salary, gratuity, earned leave, etc. and detailed basis of such calculation. Mr. Shah has submitted that the framing of a scheme for the payment of remuneration and other terms of employment of the Company Paid Staff in the office of the Official Liquidator on the basis of equal pay and other benefits for equal work as of Central Government Staff will take some time and hence, pending formulation and finalisation of the Scheme, the Court may issue interim direction to grant monetary benefits to the Company Paid Staff. 11. After having heard learned advocate Shri Ashok L. Shah appearing for the applicants and the Official Liquidator and after having considered their respective pleadin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Liquidator from 1994. Statements of calculations produced before the Court are from 1994 onwards. The Bombay High Court, however, vide its interim order dated 30-7-1999, granted such monetary benefits on ad hoc basis, with effect from 1-1-1999. While passing the final order on 31-7-2001 in Misc. Company Application No. 24 of 1994, the Bombay High Court, inter alia, accorded the sanction for payment of Rs. 44,76,821 towards arrears payable after deducting tax on arrears a sum of Rs. 2,56,593 totalling to Rs. 47,11,414. The order, however, does not clearly indicate as to from which date the arrears were ordered to be paid. In any case, the said application was filed in the Bombay High Court in the year 1994 whereas the present application is filed in this Court in the year 2002. The applicants have lodged their claim before the Official Liquidator vide their letter dated 17-10-2001, wherein they have relied on the decision of the Hon ble Supreme Court referred to above, which was decided on 27-8-1999. The Court is, therefore, of the opinion that the applicants are entitled to the monetary benefit from the date of the decision of the Hon ble Supreme Court, if not from the da ..... X X X X Extracts X X X X X X X X Extracts X X X X
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