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TMI Blog2008 (12) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... e present matter hence the aforesaid referral. 2. The issue before us is : Whether sections 529, 529A, 530 of Companies Act, 1956, read with Rules 6 and 9 of the Companies (Court) Rules, 1959, read with section 35 of the Civil Procedure Code, 1908 empower the Court to award interest to the workmen/employees from the date of winding up order? 3. The Company Application has been filed to direct the Official Liquidator of the High Court, Bombay to pay interest at the rate 12 per cent per annum or such other amount on the entire dividend to the employees from the date of winding up till the actual payment of the entire amount due and payable to the workers. The above company was ordered to be wound up by an order of this Court dated 21-1-198 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill be attracted in the present situation. Rule 6 provides that the practice and procedure of the code so far as applicable shall apply to the proceedings under the Act. The workers thus will be clearly entitled to claim interest under section 34 of the Civil Procedure Code in the absence of any specific rule in that behalf under the Companies (Court) Rules." 5. The learned Counsel appearing on behalf of Official Liquidator contended that the reliance placed on Rule 6 is clearly misplaced because Rule 6 only deals with Practice and Procedure of the Code. In his submission, by this process and by referring to Rule 6 read with Rule 9, section 34 of the Civil Procedure Code cannot be invoked in this case. More so when the Companies Act does n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for interest is concerned it is only if the company is left with surplus funds after distribution of the dues of the secured creditors and the workers dues both pari passu as per the provisions of sections 529 and 529A of the Act and after distribution of preferential dues under section 530 of the Act that the question of awarding any interest on the dues of the secured creditors or the workmen's dues for the further period after the relevant date will arise. 8. The learned Single Judge in his judgment and order dated 31-8-1996, in Company Application No. 246 of 1994 had not noticed the above Rule 179 of Companies (Court) Rules, 1959. The learned Single Judge had erroneously observed that in the absence of specific Companies (Court) Rules, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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