Official Liquidator of Garware Nylons Ltd. (in Liquidation) v. Henkel Chemicals (India) Ltd. (Petitioner)
Case brief
What is this about?
Garware Nylons Ltd. in liquidation; Henkel Chemicals (India) Ltd.; Official Liquidator Report No. 118 of 2024; Company Petition No. 521 of 1992; Bombay High Court; Arif S. Doctor J.; dividend declaration @ 2.20%; adjustment of excess gratuity of Rs. 38,03,405.40 paid by Controlling Authority under the Gratuity Act; Applicants in Company Application No. 823 of 2007; 120 workmen already paid; Pravin/Praveen Mahadeo Dhole; Rule 276 and Rule 290 of the Companies (Court) Rules 1959; Section 555 of the Companies Act, 1956; Separate Dividend Account with Punjab National Bank; Companies Liquidation Account with Registrar of Companies; notice of declaration of dividend in Free Press Journal, Navshakti, Pudhari; ICICI Bank (secured creditor); Garware Employees Union; Anirudh Hariani; B. S. Nayak; Sana Wasim i/b MZM Legal LLP.
What did the court decide?
Official Liquidator Report allowed and disposed of in terms of prayer clauses (a) to (d): (i) withholding and adjusting the dividend of the Applicants in Company Application No. 823 of 2007 against the excess gratuity amount of Rs. 38,03,405.40 paid by the Controlling Authority under the Gratuity Act; (ii) declaration and payment of dividend @ 2.20% out of sale proceeds of mortgaged properties to secured creditors and workers whose admitted claims total Rs. 4,31,53,021/-; (iii) publication of the Notice of Declaration of Dividend in Free Press Journal, Navshakti and Pudhari per Rule 276, Companies (Court) Rules 1959, with advertising charges payable from company funds subject to TDS; and (iv) opening a Separate Dividend Account with Punjab National Bank, Fort, Mumbai with Rs. 4,31,53,021/- under Rule 290, payment of dividend within six months, and transfer of any unpaid/unclaimed balance to the Companies Liquidation Account under Section 555, Companies Act 1956 - with the express clarifications that the 120 workmen who already received gratuity payments are excluded and that Mr. Praveen Mahadeo Dhole is not precluded from payment if not already received.