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TMI Blog2008 (10) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... Liquidator himself to this Court along with his report while in the remaining three matters, the claimants-legal heirs are allowed to be brought on record by the Division Bench in the company appeal. During hearing it has also transpired that CAL No. 89 or 114 of 2003 filed by some legal heirs for a direction to the Official Liquidator to make payment to them with 24 per cent interest are still pending without any orders. 2. The brief details of the individual matters are being below. Only in some matters, as per the case of the applicants, there is difference in amount mentioned initially by the Official Liquidator and as mentioned in his notice dated 26-3-2007. Necessary details are as under : (A)CAL No. 105 of 2008 is in relation to Claim No. 172 and the name of the deceased worker therein is Deduram Lilhare. Applicant heir Nandlal D. Lilhare claims to be his son. Total amount due to the deceased is worked out is Rs. 1,70,735 and sum due at 14 per cent as declared is Rs. 22,281. Nandlal's CAL No. 114 of 2003 for a direction to the Official Liquidator to pay the amount to him with 24 per cent interest is pending. (B)CAL No. 106 of 2008 is in relation to Claim No. 176 and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due to the deceased is Rs. 2,91,024 stated to be admitted by the Official Liquidator and Rs. 3,14,534 as per the notice dated 26-3-2007 and the sum due at 14 per cent as declared is Rs. 40,751. CAL No. 114 of 2003 filed by Smt. Gajrabai S. Lilhare seeking directions to the Official Liquidator to effect payment to her with 24 per cent interest is pending. (H)CAL No. 108 of 2008 is in relation to Claim No. 19 and the name of the deceased worker therein is Mehtar Markam. Applicant heirs are Smt. Dukalibai M. Markam and Nandlal M. Markam. Total amount due to deceased is Rs. 3,41,309 and the sum due at 14 per cent as declared is Rs. 44,205. In company appeal, the Division Bench has allowed the legal heirs to come on record on 7-12-2007. (I)CAL No. 112 of 2008 is in relation to Claim No. 17 and the name of the deceased worker therein is Ankush Kolekar. Applicant heirs are Smt. Shashabai A. Kolekar and Vitthal A. Kolekar. Total amount due to the deceased is Rs. 3,41,300 stated to be admitted by the Official Liquidator and Rs. 3,41,309 as per the notice dated 26-3-2007 and the sum due at 14 per cent as declared is Rs. 44,205. In company appeal, the Division Bench has allowed these legal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... due to deceased creditor or return of capital due to deceased contributory is Rs. 500 or less, the Official Liquidator may, upon satisfying himself as to the claimant's right and title to receive the dividend or the return, as the case may be, apply to the Court for sanctioning the payment of such a dividend or return to the claimant without the production of a succession certificate or like authority. Where the Court sanctions the payment, the Official Liquidator shall make the payment upon obtaining a personal indemnity from the payee." 5. Rule 9 lays with inherent powers and it is as under : "9. Inherent powers of Court.-Nothing in this Rule shall be deemed to limit or otherwise affect the inherent powers of the Court to give such directions or pass such orders as may be necessary for the ends of justice or to prevent abuse of the process of the Court." 6. In Company Appeal No. 8 of 2007, the Division Bench of this Court has considered the provisions of rule 164 of the Court Rules which prescribes limitation of 21 days for filing of an appeal by the creditor before this Court. It has been held that the said rule does not bar all applications made beyond the period of 21 days ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he succession certificate only in the circumstances stipulated in rule 280. There is no other provision which permits the Company Court to sanction payment directly to such claimant without intervention of the Official Liquidator. Even if it is presumed that in appropriate cases, upon failure or refusal of the Official Liquidator to act, this Court may direct release of payment without the succession certificate but then compliance with the safeguards prescribed in rule 280 will have to be ensured by the Court. In view of this express provision and ceiling on the amount for which the succession certificate can be dispensed with, it is obvious that recourse to inherent powers vide rule 9 of Court Rules is not possible. What is expressly prohibited by rule 280 cannot be achieved vide rule 9 of the Court Rules. The procedure is to safeguard the interests of genuine creditors and that purpose cannot be allowed to be defeated. 8. Learned senior advocate had pointed out that rule 280 does not contemplate only succession certificate but also other documents as it uses the words "like authority" and according to him this phrase of wide amplitude has deliberately been used to meet with var ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... davit, on the date of hearing, nobody appeared before Court on behalf of the employer. It is in this background that in paragraph No. 9 a direction has come that compensation due to the deceased should be paid to his legal heirs on requisite affidavits being filed by such legal heirs before the management. It is apparent that no "principle of law" has been laid down in any of these judgments and this Court was not required to consider any debate on the issue in that connection. Certainly provision like present rule 280 of Court Rules did not fall for consideration there. One order dated 16-4-1990, passed by the Company Court at Nagpur on A.O.L. Report No. 4 of 1988 is also pressed into service by the senior advocate. The said order only permitted Assistant Official Liquidator to retain an amount of Rs. 8 lakhs during pendency of the petition and without prejudice to the rights of either of the parties. Rest of the amount was directed to be refunded to the National Textile Corporation. It does not help the present applicants in any way. 10. In the present facts, mere inclusion of the names of the legal representatives of the deceased worker by the Official Liquidator in his report ..... X X X X Extracts X X X X X X X X Extracts X X X X
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