9911796707
TMI Blog2014 (9) TMI 1285X X X X Extracts X X X X X X X X Extracts X X X X ..... abad & Jalna (Maharashtra); and Mr. Rajiv Bahl, Advocate appearing for Official Liquidator to handover affidavits in compliance of the order dated 7th August, 2014, in Court. Copies thereof have been served on other parties. The affidavits are taken on record. 2. In terms of the said directions, affidavits of respondent No. 6 (Dena Bank) & respondent No.13 [Jhalani Tool Workers Union (Kundli Unit)] are already on record. Learned counsel for the parties submit that, therefore, there is no impediment for the court proceeding to make an order in terms of the proposal mooted by Mr. Jos Chiramel, Advocate for Dena Bank, Syndicate Bank & Indian Overseas Bank in para 1 of the order dated 7th August, 2014. 3. We have heard learned counsel for the parties. As back as in the year 1987, the respondent company M/s Jhalani Tools (India) Limited had approached the Board for Industrial and Financial Reconstruction (BIFR) for its declaration as a sick company within the meaning of Sick Industrial Company (Special Provisions) Act, 1985. During the pendency of this reference, Company Petition No.539/1998 was filed by M/s Tata Iron Steel Company Ltd. (TISCO) & Ors. against M/s Jhalani Tools (India) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as of other parties including the provident fund authorities. Mr. Justice S.N. Dhingra Committee have found the claims of 2018 workers of the three units in Faridabad to be entitled for Rs.14,64,88,422/- on the basis of One Time Settlement. 8. It is on record in the winding up proceedings that out of six units of the company five units have been sold by the Official Liquidator in the winding up proceedings and sale proceeds duly received were credited in the account of the company. 9. The parties are before us because the Official Liquidator filed a company application No.145/2013 in the Company Petition No.539/1998 before the Company Court seeking directions to disburse the amount to the workers out of the available funds in the account of the company between the secured creditors and workers based on a calculation dated 8th January, 2013 submitted by the Chartered Accountant. 10. So far as workers of the other units of the company at Kundli, Aurangabad & Jalna (Maharashtra) are concerned, they had filed their claims before Mr. Justice S.N. Dhingra Committee, some of which stand finally adjudicated upon while others are under scrutiny. 11. This application came to be consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sits of the company and from the sale of its units had been transferred by the Official Liquidator to the Common Pool Fund. This aspect was noted in the following directions in paras 55 & 56 of the learned Company Judge passed in order dated 13th August, 2013: "55. A direction is issued to the OL to place before the Court, by the next date, the complete accounts as regards the amounts deposited in the CPF from the funds of the company pursuant to the earlier directions issued by the Court. Copies thereof be served in advance to the counsel for the workmen, the ex-Management and the secured creditors. 56. The Court is of the view that augmentation of the CPF of the OL should not result in depletion of funds that should be available for disbursement to the workmen and secured creditors. Given that there is a sufficient amount in the CPF, the court directs that OL to forthwith cease diverting any further sum from the interest accrued on the FDs created from the company's funds. It is further directed that in the event there is any shortfall in the funds available to make payment to the workmen and the secured creditors after the sale of the Faridabad Unit, the OL will refund to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e parties that this proposal be forthwith implemented and the directions be made to the Official Liquidator to restore the amounts from Common Pool Fund to the credit account of the company. 18. A perusal of the affidavit filed by Mr. Rajpal Singh, Dy. Official Liquidator on behalf of Official Liquidator shows that after the sale of five units of the company, the office of the Official Liquidator on 20th October, 2005, had transferred 50% of the interest amount accrued into the Common Pool Fund and further interest accrued on the fixed deposit receipts created from the company's fund have been deposited in Common Pool Fund. 19. Inasmuch, as the present consideration has been necessitated in view of peculiar facts and circumstances of the One Time Settlement and the sacrifice made by the members of the appellant, we make it clear that none of the directions contained herein shall be treated as a precedent in any other case. The order is being passed to balance equities especially amongst the thousands of workmen of the appellant union, who are languishing and deprived of their legitimate dues for decades. In these facts, it cannot be denied that in the instant case interest of jus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount of Rs.14,64,88,422/- for disbursement of 2018 workers after adjusting the amounts which may have been paid to 2018 workers of the appellant union, in accordance with due procedure. iv. The appellant-Jhalani Tools Workers Union Faridabad shall ensure disbursement of the amounts to the 2018 members in terms of the settlement immediately on receipt of the amount from the appellant against verification and receipts. Complete records of the disbursement shall be placed before the Official Liquidator which shall be placed before the Mr. Justice S.N.Dhingra Committee for scrutiny and thereafter before the learned Company Judge by the Official Liquidator. v. The Official Liquidator shall proceed in the matter of disbursement to the other workers and creditors in terms of the orders passed by the learned Company Judge in terms of the pro-rata distribution between the other workers and the creditors. vi. The directions made in para 45 of the order dated 13th August, 2014 of the learned Company Judge to the extent they relate to the 2018 workers of the Faridabad Units, who are members to the One Time Settlement, shall stand modified to the above extent. vii. In view of ..... 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