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2007 (3) TMI 378 - SC - Companies LawWhether the trustees have been able to discharge their entire liabilities? Held that:- Appeal allowed. The learned Division Bench as well as the Single Bench which passed the impugned judgment erred in holding that the purpose of the Trust still exists and remains valid. Consent letters have been given by 140 employees of the Company and the others concerned have also been paid off. The only one remaining is Shri M.D. Shukla, who was the Managing Director for 38 months and who claims pensionary benefits of over Rs. 45 lakhs after having changed the Trust rules just before his retirement in order to become a beneficiary. His claim is disputed by the company. In my opinion, even if there is a genuine dispute about the claim of Shri M.D. Shukla of about Rs. 45 lakhs, this amount could have been set aside for adjudication in a suit and the balance amount of the Trust fund should have been ordered to be returned to the Company. In view of section 83, the money lying with the Trust/fund should be returned to the Company. There is no employee/beneficiary left who is entitled to get any pension out of the Trust in issue, which material fact has been ignored by the courts below.
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