TMI Blog2021 (3) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... set at naught based on such vague premises. Besides, it is quite surprising that the OL seeks to express doubts on the exercise undertaken by its empannelled Chartered Accountants on the fanciful grounds to be found in the self-serving report got prepared by the Bank - earlier determination by the Official Liquidator and the Chartered Accountants from the panel of the Official Liquidator can stand and there is no reason for any re-adjudication based upon surmises and conjectures or even vague and fanciful doubts. According to me, this is not how the dues payable to the workmen should be delayed either by the Official Liquidator or the Nationalized Bank. The Corporation Bank, through its authorized officer Ayub Khan has stated on affidavit that the total outstanding liability of the Company in winding up towards the bank was ₹83.36 crores. The calculations will therefore have to be made on this statement and the Bank, cannot insist on running its interest meter and at the same time freezing dues payable to the workmen. Such an attempt is neither fair nor proper. By orders dated 26th February 2021 and 5th March 2021, an amount of ₹1.46 crores or thereabouts was alre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iquidator to enable the Official Liquidator to distribute the same to 121 workers; (c) In view of para 9 supra, whether this Hon'ble Court may be pleased to consider the request of P. V. Bhandre Co. Chartered Accountant for increasing the rate of adjudication of claim to the extent of ₹250/- per claim instead of ₹150/- per claim as ordered by this Hon'ble Court vide order dated 25.10.2018; and (d) For issue of such other order/orders as this Hon'ble Court may deem fit and proper. 3. In support of calculations that an amount of ₹7,45,79,292/- is due and payable to the 121 workmen of the Company which is being wound up, the Official Liquidator, in his report has referred to various advertisements issued and the reports of the Chartered Accountant M/s. P. V. Bhandre Co., from the panel of the Official Liquidator. Besides, the report indicates that the representatives of the workmen as also the Bank were granted an opportunity of hearing and it is only after hearing them this figure of ₹7.45 crores or thereabouts came to be determined. 4. Now the documents annexed to the report are perused, then, it is reflected that even the Ex- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be assailed in such a casual manner inter alia based on some extraneous material taken into account by the learned Advocate. The Corporation Bank which is a Nationalized Bank should not have indulged in such an exercise, simply to obstruct or delay the disbursement of the workmen s dues. No doubt, the Corporation Bank is entitled to challenge the determination by the Official Liquidator but surely this is not how the reports prepared by the professional can be assailed. 9. To this self-serving enquiry report, is annexed a summary of information collected in respect of 121 workmen. This is supposed to be based upon certain payslips that were discovered by the enquiry officer at a later point in time. Again, there is no credibility to such discovery. Suffice to note that at the initial stage, the calculations were made by the Official Liquidator and the Chartered Accountants appointed by the Official Liquidator after giving an opportunity of hearing not only to the Bank and the workmen but also to the Ex-directors. All records were examined professionally and this is the figure was arrived at. 10. Now the enquiry report filed by the learned Advocate proposes to cut down ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. This is not how the OL should deal with the sensitive issue of workmen s dues. At the urging of Ms. Razak, nothing more needs to be said on this occasion. 13. Therefore, earlier determination by the Official Liquidator and the Chartered Accountants from the panel of the Official Liquidator can stand and there is no reason for any re-adjudication based upon surmises and conjectures or even vague and fanciful doubts. According to me, this is not how the dues payable to the workmen should be delayed either by the Official Liquidator or the Nationalized Bank. 14. Mr. Usgaonkar then pointed out that in terms of Section 529 and 529A of the Companies Act, 1956, both the workmen as well as the Bank which is a secured creditor have a pari passu charge. He pointed out that both the workmen as well as the Bank have the right of preferential payment as compared to all other debtors. He however submits that as between the Corporation Bank and the workmen, the payment will have to be done only on a pro-rata basis. He refers to the illustration below Section 529 of the Companies Act as also the decision of the Hon'ble Supreme Court in Andhra Bank Vs Official Liquidator and another ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount of ₹3.71 crores will have to be paid to the 121 workmen with whom this Court is presently concerned. 19. By orders dated 26th February 2021 and 5th March 2021, an amount of ₹1.46 crores or thereabouts was already directed to be paid to the 121 workmen on pro-rata basis. Therefore, this amount will have to be deducted from the amount of ₹3.71 crores now payable to these 121 workmen. Further, Mr. Usgaonkar pointed out that by order dated 1st October 2015, an amount of ₹71,19,770/- was also paid to the 121 workmen. Therefore, even this amount will have to be deducted from the amount of ₹3.71 crores as aforesaid. 20. Ms. Razaq points out that even on the amount of ₹45.30, interest must have accrued and orders can be made for the distribution of such interest on a pro-rata basis. This is correct. However, since the payments to be made in terms of this order are only provisional and subject to the Official Liquidator/Bank recovering further amounts by the sale of assets of the Company in winding up, this amount accrued by way of interest can be taken into consideration at a later stage. Therefore, this amount will have to abide by further o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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