Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2015 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (3) TMI 549 - HC - Companies LawCompany in liquidation - Application by secured creditors to get dues on pro rata basis - Whether Contractual labours will be covered in Workmen under the companies act & will have preferential claim in liquidation - Held that:- The official liquidator has simply quoted the definition of the workmen assigned in Industrial Disputes Act and under the Companies Act and have suddenly jumped to the conclusion that those contract labourers are the workmen within the definition engrafted under Section 528 of the Companies Act. The official liquidator has no occasion to consider the agreement between the contractors and the principal employer nor have recorded any finding whether such an agreement is sham, unreal and mere camouflage to disassociate the linkage between the contract labourers and the principal employer. The ultimate conclusion deducible from the case of Steel Authority of India Ltd. [2001 (8) TMI 1334 - SUPREME COURT] is that neither Section 10 of the Contract Labour (Regulation and Abolition) Act, 1970 nor any provision of the Act either expressly or necessary implication suggest the automatic absorption of contract labour on issuance of the notification by the appropriate government under Section 10(1) of the Act. Lifting the veil is required to be adopted in such case and a definite finding is to be arrived whether those contract labourers are in fact a workman under the establishment of principal employer who is having a submersive control over them. Even the Constitution Bench in case of Steel Authority of India have recognized three classes of the contract labourers. Since all the materials are not available before this Court and by an earlier order the official liquidator was directed to adjudicate the claim of the contract labourers whether they can be brought within the purview of workmen as defined under Section 528 of the Companies Act, this Court feels that the official liquidator should adjudicate afresh after inviting all the interest parties to produce the relevant contracts and thereafter shall arrive at the finding whether the contract is of such nature which after piercing the veil would suggest that there was a direct relationship of employer and an employee between the contract labourers and the principal employer. This Court, therefore, does not intend to pass letter of direction as sought by the official liquidator in terms of the report filed before this Court and also do not intend to pass any further direction for release of the payment as sought by the banks in their respective applications as well as the release of the amount to the contract labourers.- Directions issued to official liquidator to make an adjudication in the light of the observations made herein above.
|