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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 ..... se. Rule 280 has been enacted only to safeguard the interest of such dependents. But then in this jurisdiction identity of the genuine legal heirs is required to be established elsewhere and brought on record of Official Liquidator. In the circumstances, I do not find that this Court can deviate from the procedure prescribed and in any case, there is no material before this Court or even before the Official Liquidator to record a finding about the applicants being legal heirs of the respective deceased workers.All Applications are, therefore, rejected. - COMPANY APPLICATION NOS. 105 TO 115 OF 2008 COMPANY PETITION NO. 6 OF 1999 - - - Dated:- 24-10-2008 - B.P. DHARMADHIKARI, J. R.B. Pendharkar and Belsare for the Applicant. S. Deshpande for the Official Liquidator. JUDGMENT 1. These ten applications are moved by the legal heirs of the deceased workers of Hariganga Steel Alloys Ltd. a company in liquidation. Their prayer is to direct the Official Liquidator to pay to them the amount of dividend as per his notice dated 26-3-2007, without insisting for production of succession certificates. They point out that the Official Liquidator has worked out total e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cant heirs are Smt. Sonarinbai B. Sonkutla, Bhuwaneshwar B. Sonkutla and Birendra B. Sonkutla. Total amount due to the deceased is Rs. 93,478 and the sum due at 14 per cent as declared is Rs. 44,532. CAL No. 89 of 2003 filed by Smt. Sonarinbai B. Sonkutla seeking a direction to the Official Liquidator to pay the amount to her with 24 per cent interest is pending. ( E )CAL No. 110 of 2008 is in relation to Claim No. 175 and the name of the deceased worker therein is Bansi Naik. Applicant heirs are Smt. Sonabai Bansi Naik, Rajesh B. Naik and Paryatan B. Naik. Total amount due to the deceased is Rs. 1,17,810 stated to be admitted by the Official Liquidator and Rs. 1,17,800 as per the notice dated 26-3-2007 and the sum due at 14 per cent as declared is Rs. 15,220. CAL No. 89 of 2003 filed by Smt. Sonabai Bansi Naik seeking a direction to the Official Liquidator to pay the amount to her with 24 per cent interest is pending. ( F )CAL No. 111 of 2008 is in relation to Claim No. 171 and the name of the deceased worker therein is Darshanlal Lilhare. Applicant heirs are Smt. Shantabai D. Lilhare, Sanjaykumar D. Lilhare and Shamkali Lilhare. Total amount due to the deceased is Rs. 77,375 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able are already mentioned, it is also stated that the notice dated 26-3-2007, issued by the Official Liquidator for this purpose is addressed to one of the applicants only. It is further pointed out that in 3 cases the Division Bench of this Court has permitted the names of the legal heirs to be substituted in the company appeal and therefore, those legal heirs are also entitled to payment. In such circumstances, insistence of the Official Liquidator on obtaining of "succession certificate" is arbitrary and unsustainable. He invites attention to the computed amounts of 14 per cent dividend to urge that the said amounts are very meagre and asking the legal heirs to obtain the succession certificate therefor is nothing but persecution. He has also invited attention to certain judgments including the judgment of the Division Bench in company appeal to argue that the Companies (Court) Rules, 1959 (referred to as "Court Rules" hereinafter), do not take away the inherent powers of this Court and in present facts, in order to do justice, those inherent powers need to be exercised. He also attempts to point out that previously in certain matters such course of action has been followed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set out the ground of such appeal and notice of appeal shall be given to the liquidator. On such appeal, the Court shall have all the powers of an Appellate Court under the Code." 7. It is, therefore, apparent that the language of rule 164 itself does not prohibit filing of an appeal after expiry of 21 days and does not in any way restrict the power of the Company Court to entertain such appeal thereafter. Rule 7 permits the Court to extend or abridge the time prescribed by the Court Rules. Recourse to rule 9 in such circumstances in furtherance of this scheme and in the interest of justice is not prohibited. Rule 280 on the other hand does not deal with any power of Court. It restricts the power of the Official Liquidator to make payment to the legal heirs of the deceased creditor/worker. The said provision permits him to effect such payment without a succession certificate if the amount is small. The amount is also specified in the provision itself. However, even in that case, law requires him to record a satisfaction as to the claimant s right or title to receive that dividend and thereafter to obtain sanction of the Company Court to effect such payment without a succession ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which has been given jurisdiction in that respect by some statute. The said words do not dilute the provisions of rule 280 in any way but only provide for an alternative to a succession certificate if such alternative is available legally. When the Official Liquidator cannot dispense with the requirement of said rule 280, it is obvious that there has to be a specific provision to enable the Company Court to waive it and when, the rule making authority has chosen not to incorporate such a rule ; the arguments of the present applicants on these lines deserve to be rejected. 9. Unreported judgment of learned Single Judge of Nagpur Bench of this Court dated 16-9-1997, in Writ Petition Nos. 1700 of 1996, 1801 of 1996, 2677 of 1996 and 2678 of 1996 wherein in paragraph No. 13 this Court has observed that whenever legal representatives of deceased respondents in writ petitions before it move for execution, those legal representatives would be entitled to execute the certificates of recovery under section 33C(2) of the Industrial Disputes Act, 1947. It is obvious that there were no legal representatives before the Court and, therefore, only names of the deceased employees were allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es in search of livelihood. In some applications it is mentioned that the widows had shifted to some interior places and hence, there was some delay in presenting the claim or challenging its rejection. The situation and plight of such dependents of the deceased worker is not hard to realise. Rule 280 has been enacted only to safeguard the interest of such dependents. In few cases, the amount is really very small to ask the applicants to incur expenditure for procuring a succession certificate or similar authority and to wait indefinitely till that process is complete. But then in this jurisdiction identity of the genuine legal heirs is required to be established elsewhere and brought on record of Official Liquidator. In the circumstances, I do not find that this Court can deviate from the procedure prescribed and in any case, there is no material before this Court or even before the Official Liquidator to record a finding about the applicants being legal heirs of the respective deceased workers. 11. All Applications are, therefore, rejected with no order as to costs. However, if the applicants move for grant of succession certificates or any like document/authority, the concer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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