Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2019 (3) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 308 - Tri - Insolvency and BankruptcyCorporate insolvency process - outstanding workmen Debt - HELD THAT:- Admitted position about the amount of workmen Debt is that their percentage is much less than 10% of the total Debt. As per the figures the Financial Creditors have lodged claim of ₹ 4264 Crore and Operational Creditors claim is approximately ₹ 6.6 Crore, however as against that, the employees/workmen claim is only ₹ 5.56 crores. As a consequence, since the claim of workmen is less than 10% of the total Debt therefore it was not necessary to issue Notice intimating the meeting of the Committee of Creditors to this Applicant. The Resolution Professional was not under obligation u/s 24 (3) (c) to give Notice of meetings of CoC. Since the statute itself do not subscribe issuance of Notice under a specific condition (i.e. 10% threshold) therefore now at this stage allowing hearing to this Applicant representing workmen may tantamount to infringement of the provisions of the Insolvency Code. It is true that Civil Rights are to be protected and natural justice ought to be granted, but while dealing Tax matters or Financial matters it sometimes happen that the Law of Equity is not bestowed upon uniformly. This Bench is aware about the judicial function while dispensing justice that opportunity of hearing must be granted to all who are going to be affected by a judgement and that the fundamental rights, such as Civil rights be protected. Therefore, in the process of Insolvency we have taken due cognizance of the problem of the labourers/ workmen, which shall be dealt with at the time of approval of the Resolution Plan pending for consideration. This Bench shall examine the financial capacity of the Resolution Applicant and also consider the proposed settlement with other Claimants and only thereafter shall decide a fair and reasonable amount be disbursed to the members of this Labour Union.
|