Allowed

Sumeet Machines Employees Union through Its President Shri Ramesh N Nagare v. the Official Liquidator (Sumeet Machines Ltd. )in Liquidation

Bombay HC5 Mar 2014CA/19/2014

Case brief

AI extract

What is this about?

Held that while the broader prayer regarding sale proceeds must wait, the company application is made absolute to direct the liquidator to invite and adjudicate workers' claims within stipulated timelines to prevent prolonged delay.

What did the court decide?

Official Liquidator directed to invite claims from workers within four weeks and complete adjudication within twelve weeks; company application made absolute on prayer (a).

Sumeet Machines Employees Union through Its… — Insolvency and Bankruptcy | Bombay HC (2014)

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911-CA19-2014.DOC

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Vishal

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IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMPANY APPLICATION NO.19 OF 2014

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IN

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COMPANY PETITION NO.233 OF 1994

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Sumeet Machines Employees Union…Applicant

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In the matter between

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M/s.Varkey Overseas Trading Company Pvt. ..Petitioner
Ltd.

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Versus

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The Official Liquidator.Respondents

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Ms.Gayatri Singh a/w.Debapriya Mukharjee i/b.Bhavan Mhatre for
the Plaintiffs.

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Mr.Arun Siwach i/b.M/s.A. Shroff & Co. for the original Petitioner.
Ms.Yogini Chavan, Assistant Official Liquidator.

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CORAM: G.S. PATEL, J DATED: MARCH 05, 2014

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PC:-

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1.This is an application filed by the respondent company’s
employees’ union. It seeks an order to the Official Liquidator to
expeditiously complete adjudication of the workers’ claims.
Secondly, it seeks a direction to the Official Liquidator to make an
appropriate application before the Debt Recovery Tribunal to set

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911-CA19-2014.DOC

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aside an amount of Rs.73,34,77,498/- from the sale proceeds of the
assets of the company and to have sale proceeds brought into the
custody of the Official Liquidator.

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2.The learned counsel for the petitioner states that an earlier
order dated 17th June 2005 by which the petition was made
absolute was challenged in appeal. The learned single Judge’s order
directed the Official Liquidator to take possession of the assets of
the company. However, that order dated 17th June 2005 was stayed
for a period of four weeks.

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3.On 12th October 2010, a Division Bench of this Court, on
that appeal, directed the Liquidator not to take further steps toward
taking possession of the property. However, the final order of
winding up was not stayed. Ms. Singh, learned advocate for the
applicants, therefore seeks that the claims of the workers should be
now adjudicated. She points out, and, in my view, rightly, that this
issue has been pending since 1994. Workers’ dues can not be kept
without adjudication for such a long period of time.

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4.In view of the appellate order, at this stage, it is possible to
grant only prayer (a). Ms. Singh seeks leave to withdraw the second
prayer (b), with liberty to file a fresh application on the same cause
of action and for the same relief. Leave granted with liberty as
prayed.

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5.Accordingly the company petition is made absolute in terms
of prayer clause (a). It is made clear that the disposal of this
application in terms of prayer (a) does not preclude a subsequent

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911-CA19-2014.DOC

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application for, and a consideration of, prayer (b). That prayer has
not been decided on merits, and it is allowed to be not pressed at
this stage specifically with liberty reserved to the applicants.

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6.The Official Liquidator shall invite claims from workers
within four weeks. The adjudication shall be completed within
twelve weeks thereafter.

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7. Company application is disposed of in these terms.

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(G. S. PATEL, J.)

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Sumeet Machines Employees Union through Its President Shri Ramesh N Nagare v. the Official Liquidator (Sumeet Machines Ltd. )in Liquidation

Case brief

What is this about?

What did the court decide?

Sumeet Machines Employees Union through Its President Shri Ramesh N Nagare v. the Official Liquidator (Sumeet Machines Ltd. )in Liquidation

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

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