2013 (3) TMI 884 - HC - Companies Law

Summary

Issues:
1. Claim for pending salary and interest by an ex-employee post-company winding up.

Analysis:
The judgment pertains to a case where an ex-employee of a company, which was wound up by the court, filed an application seeking the release of pending salary for a period after the company's winding up. The applicant claimed salary for 7 months from December 1995 to June 1996, along with interest at 18% per annum. The Board for Industrial and Financial Reconstruction (BIFR) had recommended the winding up of the company, and the Official Liquidator was appointed to manage the assets. The Official Liquidator contended that as per Section 445(3) of the Companies Act, 1956, no employer-employee relationship existed post the company's winding up on 2.8.1995. The Official Liquidator had already made full and final payments to all employees, including the applicant, as per the court's orders and settlement calculations.

Furthermore, the Official Liquidator had disbursed amounts to secured creditors and workers in compliance with court orders. The applicant's claim for pending salary was challenged by the Official Liquidator and another party representing the company, stating that all dues had been settled as per the law. The court noted that the applicant had previously filed a similar application in 2003, which was disposed of with directions to the Official Liquidator to verify the claims. The court reiterated that post-winding up, the applicant was not entitled to any further benefits as per the law. Despite the applicant's arguments that the salary claim was separate from other settlements and that necessary details were not provided by the Official Liquidator, the court upheld the Official Liquidator's position and rejected the applicant's claim for pending salary and interest.

In conclusion, the court dismissed the application, emphasizing that the applicant, as an ex-employee of the wound-up company, was not entitled to claim pending salary for the period after the company's winding up, as per the provisions of the Companies Act, 1956. The court upheld the Official Liquidator's actions and previous settlements, stating that all dues had been cleared, and no further payments were owed to the applicant.