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TMI Blog2009 (7) TMI 786X X X X Extracts X X X X X X X X Extracts X X X X ..... th the Tribunal subject to final order that may be passed by the Tribunal in the suit. However, if the suit is decreed and the recovery certificate is issued, any surplus amount is available towards workers' claim as per section 529A, the same shall also be distributed accordingly by the Tribunal and in the event there is a failure, the official liquidator shall be at the liberty to move appropriate application before the appropriate forum. The official liquidator shall be at the liberty to make the payment of the bill of chartered accountant of ₹ 6112. - O.L.R. NO: 157 OF 2007 - - - Dated:- 15-7-2009 - JAYANT PATEL, J. Mrugesh Jani for the Applicant. S.S.Panesar , Praful Bhatt and Harsad J. Shah for the Respondent. JUDGMENT 1 Jayant Patel, J .- The present report has been filed by the official liquidator to consider the claim of the workers amounting to Rs. 35,43,705 and to seek further direction for distribution of the fund on ad hoc basis subject to the ratio as may be worked out between the secured creditors and the workers. It appears that thereafter the workers' claim was re-verified by the chartered accountant and the net cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vest with the recovery officer of the Debts Recovery Tribunal as per section 19(19) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as "the RDB Act"). It was also submitted that the workers have lodged the claim and the official liquidator is also joined as a party in the said proceedings and therefore, such question of disbursement can be decided by the recovery officer of the Debts Recovery Tribunal and this court may not exercise the powers under the Companies Act or may not direct for such deposit of the amount even for workers' claim with the official liquidator for distribution to the workers. 6. Respondent No. 2-union has supported the stand of-the official liquidator for realisation of the workers' claim. 7. It is true that in the case ;of Allahabad Bank [2000] 101 Comp. Cas. 64 ; [2000] 4 SCC 406, the apex court did observe that in respect of the money realised under the RDB Act the question of priorities amongst the banks and financial institutions and other creditors be decided only by the Tribunal under the RDB Act in accordance with section 19(19) read with section 529A of the Companies Act, 1956 and in no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany, the Tribunal may order for distribution of the sale proceeds. Therefore, the basic requirement for application of section is that there must be a certificate of recovery against the company. It is an admitted position that the suit is pending even as on today and no decree or award has been passed and consequently no certificate of recovery has been issued against the company. Under these circumstances, in the absence of the certificate of recovery against the company, the Tribunal or the concerned officer' of the Tribunal will have no power to distribute the amount as per section 19(19) of the RDB Act. Therefore, even if the observations made by the apex court in Allahabad Bank [2000] 101 Comp. Cas. 64; [2000] 4 SCC 406, are considered, the jurisdiction under section 19(19) of the Tribunal for distribution of the amount of sale proceeds would not be available for disbursement under section 529A of the Companies Act. Therefore, merely because the workers have made certain claim in the proceedings before the Tribunal or that the official liquidator-is representing the company in liquidation for defending- the suit would not be a ground to reject the report submitted by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deserve to be accepted. 11. As such the amount claimed by respondent No. 1-bank in the suit on March 10, 1988, is Rs. 1,32,46,190 and admittedly, the said amount is calculated for the period later to the date of winding up which is on September 12, 1986. In any case for the purpose of calculation under section 529A of the Act being share of the secured creditor the amount would not exceed Rs. 1,32,46,190 since the date of winding up is prior to the claim made. Therefore, for the purpose of calculation, at the most, the claim of respondent No. 1-bank for all purposes as secured creditor, would not exceed Rs. 1.32 crores. Of course, the aforesaid observations are without prejudice to the contentions of the company in liquidation in the pending suit before the Tribunal. The workers' claim as observed earlier is assessed by the C. A. and is Rs. 32,24,097.89 so roughly can be said as Rs. 33 lakhs. If the claim of secured creditor is calculated as Rs. 1.32 crore and the claim of the workers is calculated as 0.33 crore, the ratio for disbursement under section 529A would be 80 per cent, for secured creditor and 20 per cent, for workers claim. The fund available as observed earlier is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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