9911796707
TMI Blog1994 (4) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... al liquidator. The applicant bank being the secured creditor has chosen to remain outside the winding up proceedings and has instituted Special Civil Suit No. 681 of 1989 in the court of the Civil Judge, S.D., Baroda, for recovery of the sum of Rs. 4,03,41,680.80. Since various movable and plant machinery of the said mill are hypothecated and/or mortgaged to the applicant bank, it has also prayed for a preliminary decree of redemption of the mortgage and for payment of its dues by selling all the securities. It appears that the Recovery Mamlatdar has vide notice issued under the Bombay Land Revenue Code, called upon the mill company to pay up the amount of Rs. 16,78,851.85. The said amount is stated to be due and payable by the company und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Bombay Land Revenue Code for recovery of the aforesaid amount due and payable to respondents Nos. 6 and 7. Mr. S.R. Shah, learned counsel appearing for respondent No. 7, has invited the attention of the court to section 40 of the Employees' State Insurance Act, 1948. Section 40, inter alia, provides for the liability of the principal employer, to pay contribution in the first instance. Sub-section (4) of section 40, inter alia, provides that any sum deducted by the principal employer from wages under this Act shall be deemed to have been entrusted to him by the employees for the purpose of paying the contribution in respect of which it was deducted. Based on the aforesaid provision, it is submitted before this court that the amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the society and the society. The society every month used to send a requisition to the company showing what amount is claimed from each employee of the company and the company would deduct the requisite amount from the wages payable to the employees and remit that amount to the society. Such a company was ordered to be wound up and the accounts of the company showed a credit balance to the extent of Rs. 86,166.86. The society claimed payment of that amount from the liquidator in priority to any other creditor. The liquidator moved an application before the court for a decision on the question whether the said amount was a trust amount belonging to the society and did not form part of the assets of the company, and it was in this context tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and shall have to be accepted. The money which the company has deducted from the wages of the employees towards the employees' contribution shall have to be kept apart by the company as the said amount was held by the company in trust and, therefore, the said amount is liable to be returned, to the employees and/or the seventh respondent-corporation. However, Mr. P.V. Nanavati, learned counsel appearing for the bank, has submitted before this court that the bank is not factually disputing the claim of the seventh respondent-corporation. However, since, at this stage, when the bank wants to realise its dues by disposing of the securities through the permission of the court, and since it does not want to appropriate the entire amount of sale ..... X X X X Extracts X X X X X X X X Extracts X X X X
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