The case involved the rejection of a claim for statutory ...

Jharkhand HC: Workmen & secured creditor treated pari passu u/s 529-A. No statutory interest granted.

Case Laws Companies Law

May 25, 2024

The case involved the rejection of a claim for statutory interest under Rule 156 of the Companies (Court) Rules, 1959 in favor of the workmen. The court held that under Section 529 of the Companies Act, workmen are treated as secured creditors to ensure they are not deprived of their dues in case of liquidation. Section 529-A establishes that workmen's dues and debts due to secured creditors are to be treated equally. The court found that the workmen did not raise a claim for interest previously and payments made to them were in compliance with court orders. The court dismissed the appeals, emphasizing the wide powers of the appellate court to ensure justice between parties.

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The case involved the rejection of a claim for statutory ...

Jharkhand HC: Workmen & secured creditor treated pari passu u/s 529-A. No statutory interest granted.

Case Laws Companies Law

May 25, 2024

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