Allowed

Dashrathsinh Thansinh Rathod Tla Committee Member of New Gujarat Synthetics NO.1 v. Official Liquidator of New Gujarat Synthetics No 2 (in Liquidation)

Gujarat HC23 Feb 2022COMA/49/2019

Case brief

AI extract

What is this about?

The High Court of Gujarat directed the Official Liquidator of New Gujarat Synthetics No.2 (in liquidation) to disburse a verified amount of Rs. 2,35,60,263/- for bonus and unavailed privilege leave to the workers of Unit No.1 within six weeks upon receipt of bank account details and undertakings.

What did the court decide?

Directed the Official Liquidator to disburse Rs. 2,35,60,263/- for bonus and unavailed privilege leave to the workers via RTGS/NEFT within six weeks upon receiving undertakings and account details.

Dashrathsinh Thansinh Rathod Tla Committee Member of… — Banking and Recovery | Gujarat HC (2022)

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C/COMA/49/2019 ORDER DATED: 23/02/2022

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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

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R/COMPANY APPLICATION NO. 49 of 2019

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DASHRATHSINH THANSINH RATHOD TLA COMMITTEE MEMBER OF NEW GUJARAT SYNTHETICS NO.1

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Versus

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OFFICIAL LIQUIDATOR OF NEW GUJARAT SYNTHETICS NO 2 (IN LIQUIDATION)

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Appearance:

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MR UT MISHRA FOR MR TR MISHRA(483) for the Applicant(s) No. 1 MR AFTABHUSEN ANSARI(5320) for the Respondent(s) No. 1 OFFICIAL LIQUIDATOR for the Respondent(s) No. 1

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CORAM: HONOURABLE MR. JUSTICE BHARGAV D. KARIA

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Date : 23/02/2022 ORAL ORDER

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Heard learned advocate Mr.U.T. Mishra for learned advocate Mr.T.R. Mishra for the applicant and learned advocate Mr.Aftabhusen Ansari for the respondent No.1.

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By this application the applicant, being a member of Textile Labour Association, has prayed for the following reliefs :

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“(A) The Hon’ble Court be kind enough to issue direction to release the amount of Bonus and Unavailed Privilege Leave which remained unpaid to the members of New Gujarat Synthetics No.1;

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(B) Any other and such further relief as the Hon’ble Court deems fit and proper int eh interest of justice.”

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Pursuant to the notice issued by this Court,

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Page 1 of 12

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C/COMA/49/2019 ORDER DATED: 23/02/2022

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the Official Liquidator has filed a report dated 21^st August, August, 2019 alongwith letter dated 21^st August, 2019 addressed to M/s. Amal Datt & Associates, Chartered Accountants to verify the claim of the workers i.e. Bonus and Unavailed Privilege Leave which remained unpaid to the members of Textile Labour Association who were employees of M/s. New Gujarat Synthetics Ltd. (Company in liquidation).

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3.1 Thereafter, the Official Liquidator has filed further report dated 24^th December, 2021 and submitted that the Company in liquidation was ordered to be would up by an order dated 1^st September, 1989 passed by this Court in company Petition No.107 of 1989. It was submitted that thereafter, the Official Liquidator attached to this Court was appointed as Official Liquidator of the Company in liquidation and the possession of the assets of the Company in liquidation were taken.

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3.2 The Official Liquidator from time to time conveyed various meetings of the Sale committee and after taking approval of this Court sold/disposed of assets and properties of the Company in liquidation and also made payments to secured creditors and workers of the Company in liquidation under Sections 529 and 529A of the Companies Act, 1956.

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Page 2 of 12

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C/COMA/49/2019 ORDER DATED: 23/02/2022

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3.3 This Court by orders dared 16^th July, 2015 and 30^th July, 2015 passed in Official Liquidator Report No.70 of 2015 directed the Official Liquidator to make payments to the Employees Provident Fund, Secured Creditors, Preferential Creditors, Workers and Unsecured Creditors under Section 530 of the Companies Act, 1956 as per the verification report dated 23^rd April, 2015 of M/s. Amal Datt & Associates, Chartered Accountants. The Official Liquidator, in compliance of the said order, disbursed the payment to all the creditors of the Company in liquidation.

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3.4 This Court passed the following order on 14^th March, 2016 in Company Application No.48 of 2016 directing the Official Liquidator to publish advertisement in newspaper for inviting claims from all creditors including the Shareholders / Contributories as per Rule 148 of the companies (Court) Rules, 1959 :

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“1. Ms. Amee Yajnik, learned advocate for the Official Liquidator, submits that the Official Liquidator has received some claims from the Fixed Deposit Holders and workers/employees, for interest etc., therefore, the Official Liquidator may be permitted to invite the claims of all creditors, including the Shareholders /Contributories, in pursuance to Rule 148 of the Companies (Court) Rules, 1959, by way of publication of an advertisement.

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Having heard Mr.Nandish Chudgar, learned advocate for Nanavati Associates and Ms.Amee Yajnik, learned

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Page 3 of 12

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C/COMA/49/2019 ORDER DATED: 23/02/2022

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advocate for the Official Liquidator and in view of the aspect that the Office of the Official Liquidator has received certain claims, as above, permission is granted to the Official Liquidator to publish a notice of advertisement inviting claims of all creditors, including the Shareholders/ Contributories, in the English daily newspaper “Times of India” and the Gujarati daily newspaper “Gujarat Samachar”, (both Ahmedabad editions).

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The Official Liquidator is further permitted to make the payment of the Bill of the concerned Advertising Agency from the funds available in the Company's account. Needless to say, that the Official Liquidator shall expedite the above procedure and shall appoint a Chartered Accountant from the panel maintained in the Office of the Official Liquidator, to do the needful.

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List on 18.04.2016.”

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3.5 The Official Liquidator pursuant to the aforesaid order published advertisement in the newspaper on 30^th March, 2016 and received 39 claims from various types of creditors including the Shareholders / Contributories.

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3.6 Thereafter, the Official Liquidator appointed M/s. Amal Datt & Associates, Chartered Accountants for verification of the claims of all creditors including the Shareholder / Contributories of the Company in liquidation under Section 530 of the Companies Act, 1956.

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3.7 During the pendency of the verification work, the Company Application No.84 of 2017 was filed by the Workers’ Union i.e. Textile Labour

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Page 4 of 12

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C/COMA/49/2019 ORDER DATED: 23/02/2022

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Association for Unit No.2 and Company Application No.365 of 2017 was filed by the authorized member of Textile Labour Association for Unit No.1. The Official Liquidator was therefore, directed by this Court to consider the claim made by the applicants of both the applications.

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3.8 The Official Liquidator received the verification reports dated 1^st august, 2017 and 18^th September, 2017 from M/s. Amal Datt & Associates, Chartered Accountants for disbursing the payment under Section 530 of the Companies Act, 1956 amounting to Rs.15,59,74,695/-.

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3.9 The Official Liquidator thereafter, disbursed the amount of Rs.15,59,74,695/- as per the order passed by this Court.

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3.10 The Official Liquidator thereafter, received verification report dated 24^th March, 2018 of M/s. Amal Datt & Associates, Chartered Accountants with regard to payment to be made to Shareholders / Contributories amounting to Rs.95,46,250/-.

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3.11 This Court passed the following order on 10^th April, 2018 in Company Application No.48 of 2016 :

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“1. The applicant has taken out the Judges’ Summons for following prayers:

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Page 5 of 12

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C/COMA/49/2019 ORDER DATED: 23/02/2022

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“(A) Your Lordships may be pleased to direct the OL to disburse the surplus amount lying with its office in the accounts of Liquidations proceedings of the Company (In Liquidation) to all the Share Holders / Contributories of the Company, in accordance with Law;

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(B) Pending the admission and hearing of the present application, Your Lordships may be pleased to pass an ad-interim order directing the OL to disburse the surplus amount lying with its office in the accounts of Liquidations proceedings of the company (In Liquidation) to the Applicant, being the Share Holder / Contributory of the Company, in accordance with Law;

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(D) Be pleased to pass such other and further orders as may be deemed fit and proper in the interest of justice.”

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The Official Liquidator has filed Official Liquidator’s Report dated 02.04.2018 in the present application stating that he is in process of complying with the order dated 26.03.2018 made by this Court for disbursement to the unsecured creditors and other claimants from the amount lying in the company’s account and that he has received verification report dated 24.03.2018 from M/s. Amal Datt & Associates, the Chartered Accountant in connection with the claims of the shareholders. It is further stated that as per the said order, after Rs.3 crore is kept aside for secured creditors and for miscellaneous expenditures and further Rs.2,58,00,000/- is to be set apart towards incometax dues, he will be having the balance of Rs.5,21,24,059/- in the company’s account. From such amount, the Official Liquidator has asked for permission to disburse Rs.5 crore to the shareholders / contributories of the company in

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Page 6 of 12

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C/COMA/49/2019 ORDER DATED: 23/02/2022

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liquidation from such balance fund of Rs.5,21,24,059/- in the company’s account.

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Learned advocate Ms.Brahmbhatt appearing for the Official Liquidator submitted that considering the availability of the funds with the Official Liquidator, after keeping aside Rs.3 crore for the secured creditors and Rs.2,58,00,000/- towards income-tax dues, the Court may presently permit the Official Liquidator to disburse Rs.5 crore among the shareholders / contributories.

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Ms.Brahmbhatt submitted that as and when the Official Liquidator receives further funds or on resolution of the disputes as regards the entitlement of the secured creditors and the incometax dues, the Official Liquidator may file further report asking for the permission of this Court for dealing with the amounts in the account of the company in liquidation.

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Learned advocate Mr.Nandish Chudgar appearing for the Nanavati Associates – the advocate for the applicant submitted that though the applicant has got higher claim to receive further disbursement from the funds in the account of the company in liquidation, however, since presently the Official Liquidator is required to set apart Rs.3 crore for the secured creditors as ordered by this Court and Rs.2,58,00,000/- towards income-tax dues, the Court may pass appropriate order for disbursement of the amounts to the shareholders / the contributories as prayed for by the Official Liquidator, leaving it open to the applicant to claim further disbursement to it from any further amount which may remain or come in the account of the company in liquidation.

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The Court, having heard learned advocate Ms.Brahmbhatt for the Official Liquidator and learned advocate Mr.Chudgar for the applicant, finds that as stated in the further report dated 02.04.2018 filed by the Official Liquidator, after setting apart Rs.3 crore for secured creditors and Rs.2,58,00,000/- towards income-tax dues, when the

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Page 7 of 12

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C/COMA/49/2019 ORDER DATED: 23/02/2022

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Official Liquidator is having the balance fund of Rs.5,21,24,059/- in the account of the company in liquidation, the Official Liquidator could be permitted to disburse Rs.5 crore from such balance funds to the shareholders / contributories of the company in liquidation.

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Accordingly, prayers in terms of Para 11(a) and (b) are granted. Such disbursement made by the Official Liquidator to the shareholders / contributories shall be after getting the usual undertaking / affidavit from the shareholders / contributories and on their complying the usual terms and conditions for the disbursement of the amount.

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Since the prayers made in the Official Liquidator’s further report in para 11(a) and (b) are granted, the prayers made in the present application for disbursement of the surplus amount lying in the account of the company in liquidation to the shareholders / contributories of the company in liquidation could be said to have been satisfied at this stage, leaving it open to the applicant to make claim for further disbursement as and when there is availability of

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further funds in the account of the company in liquidation.

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The application is, therefore, disposed of. It will be open to the applicant to make further claim for disbursement if any further funds come in the account of the company in liquidation. Notice discharged.”

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3.12 The Official Liquidator complied with the aforesaid order, made payment to all the Shareholders / Contributories of the Company in liquidation.

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3.13 Thereafter, one of the Shareholders of

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C/COMA/49/2019 ORDER DATED: 23/02/2022

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the Company in liquidation filed Company Application No.21 of 2018, wherein, this Court by order dated 17^th September, 2018 directed the Official Liquidator to disburse the amount of Rs.2,50,00,000/- to the applicants of the said application and other Shareholders and Contributories as per the terms and conditions contained in the order dated 14^th November, 2014 in case of Textile Labour Association vs. Official Liquidator of Omex Investor Ltd. and Others after getting usual undertaking and affidavit from the beneficiaries.

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3.14 The Official Liquidator made payment to all the Shareholders and Contributories after taking usual undertaking in the matter on the basis of verification report dated 24^th March, 2018 of M/s. Amal Datt & Associates, Chartered Accountants.

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3.15 Thereafter, one Mr.Rajeeva Lochan Kanoria & other three legal heirs of Late Shri Tulsidas Kanoria preferred a Company Application No.15 of 2019 to disburse the surplus amount lying in the account of the Company in liquidation to the applicants being the Shareholders / Contributories. This Court, therefore, by order dated 7^th February, 2019 directed the Official Liquidator to get the other similar claims examined by the Chartered Accountant and file a report.

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Page 9 of 12

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C/COMA/49/2019 ORDER DATED: 23/02/2022

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3.16 The Official Liquidator appointed M/s. Amal Datt & Associates, Chartered Accountants, for verification of the claims of the applicants of Company Application No.15 of 2019 and on verification of the claims, the Official Liquidator disbursed the amount of Rs.2,29,500/to the applicants of the said application.

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With regard to the present application, the Official Liquidator by letter dated 21^st August, 2019 requested M/s. Amal Datt & Associates, Chartered Accountants, to verify the claims of the workers with regard to Bonus and Unavailed Privilege Leave remained unpaid to the workers and submitted a report. According to the report dated 10^th July, 2020 submitted by the Chartered Accountants, wherein, an amount of

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Rs.2,35,24,598/- was quantified to be paid towards Bonus and Interest. Thereafter, supplementary verification report dated 3^rd September, 2021 was submitted with regard to four workers for payment of Rs.35,665/-/

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The Official Liquidator submitted that there is a balance of Rs.4,27,55,482/- in the account of the Company in liquidation as on 17^th December, 2021 and therefore, the Official Liquidator has prayed for a direction to make payment of Rs.2,35,60,263/- [Rs.2,35,24,598/- + Rs.35,665/-] towards Bonus and 4% Interest to the Ex-workers

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Page 10 of 12

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C/COMA/49/2019 ORDER DATED: 23/02/2022

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of the Company in liquidation as per verification report dated 10^th July, 2021 and supplementary verification report dated 3^rd September, 2021 of M/s. Amal Datt & Associates, Chartered Accountants as per the details given in paragraph 20 of the further report dated 24^th December, 2021.

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Learned advocate Mr.U.T. Mishra for the applicant has tendered an affidavit-cumundertaking of the applicant, which reads as under:

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“1. I say that I am the TLA Committee Member, representing the workers who were working in New Gujarat Synthetics Unit No.1. t say that I have filed the above Company Application, seeking direction against the OL to release the amount of bonus and unavailed privilege leave. In the said Company Application, the OL has filed report and the claim of the workers have been verified.

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I say that the claim of workers who were working in New Gujarat Synthetics Unit No.1 will be fully satisfied by release of this amount and now no further claim of these workers remains due. I say that therefore, the Hon’ble Court may be kind enough to pass order directing the OL to release the said amount in favour of the workers who were working in New Gujarat Synthetics Unit No.1.

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I say that thus by release of this amount of bonus, there shall be no claim due and payable to the workers who were working in New Gujarat Synthetics Units No.1.”

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In view of the above affidavit-cumundertaking accepting the verification report of

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Page 11 of 12

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C/COMA/49/2019 ORDER DATED: 23/02/2022

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the Chartered Accountant, the Official Liquidator is directed to disburse the amount of Rs.2,35,60,263/- to the workers of the Company in liquidation as per the verification report dated 10^th July, 2021 and supplementary verification report dated 3^rd September, 2021 of M/s. Amal Datt & Associates, Chartered Accountants as stated in paragraph 20 of the further report dated 24^th December, 2021 within a period of six weeks from today on taking usual undertaking from each of the workers in the respective Bank accounts through RTGS/NEFT.

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Learned advocate Mr.Mishra submitted that the details of Bank accounts of each of the workers shall be provided within a period of two weeks from today to the Office of the Official Liquidator so as to transfer the amount to each of the workers through RTGS/NEFT.

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The application is accordingly disposed of with the aforesaid directions.

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(BHARGAV D. KARIA, J)

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dolly

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Dashrathsinh Thansinh Rathod Tla Committee Member of New Gujarat Synthetics NO.1 v. Official Liquidator of New Gujarat Synthetics No 2 (in Liquidation)

Case brief

What is this about?

What did the court decide?

Dashrathsinh Thansinh Rathod Tla Committee Member of New Gujarat Synthetics NO.1 v. Official Liquidator of New Gujarat Synthetics No 2 (in Liquidation)

Case brief

What is this about?

What did the court decide?

What the court decided

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