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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 ..... ction 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. Under the aforesaid facts and circumstances, we answer the above question, to the effect that the Court is empowered to award interest strictly in accordance with Rule 179 of Companies (Court) Rules, 1959 - COMPANY APPLICATION NO. 739 OF 2005 IN COMPANY PETITION NO. 1 OF 1982 - - - Dated:- 18-12-2008 - DR. S. RADHAKRISHNAN AND J.P. DEVADHAR, JJ. M.A. Choudhari for the Applicant. S.H. Doctor as an Amicus Curiae. B.B. Parekh for the Respondent. JUDGMENT Dr. S. Radhakrishnan, J. - The present matter was referred to this Division Ben ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Company Application No. 246 of 1994, wherein the learned Single Judge has observed as under : "A similar controversy arose before the Court. The Court had given the judgment after noticing the statutory provisions as also the Company Court Rules and more particularly Rules 6 and 9. By virtue of sections 529, 529A and 530 substantial rights and benefits are conferred on the workmen of the closed undertaking, the workmen getting rights pari passu with those of the secured creditors over the assets of the company in liquidation. A perusal of section 530 makes it clear that ( i ) this provision is subject to the provisions of section 529A of the Companies Act and ( ii ) revenues, taxes, cess and rates must have become due and payable with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herein it was held that payment of interest after relevant date would arise only if there is surplus available after paying in full all the creditors of the company. In such event also it would be restricted to 4 per cent from date of winding up order till date of declaration of dividend in terms of Rule 179 of the Companies (Court) Rules, 1959. 6. Companies (Court) Rule 179 reads as under : "179. Payment of subsequent interest. In the event of there being a surplus after payment in full of all the claims admitted to proof, creditors whose proofs have been admitted shall be paid interest from the date of the winding up order or of the resolution as the case may be, up to the date of the declaration of the final dividend, at a rate n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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