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TMI Blog2017 (6) TMI 1396X X X X Extracts X X X X X X X X Extracts X X X X ..... jagopalan, Addl. Solicitor General for Mr.V.Venkatesan, SCGSC. For Respondent-1 in W.A.616/2017 753 & 757/2017 : Mrs.R.Vaigai, Sr.Counsel, for M/s. Anna Mathew For Respondent-3 in All W.As : Mrs.Hema Muralikrishnan, Sr.Standing Counsel for Income Tax Department. COMMON JUDGMENT (Judgment of the Court was delivered by Huluvadi G Ramesh, J) Heard Mr.G.Rajagopalan, learned Additional Solicitor General, assisted by Mr.V.Venkatesan, Senior Central Government Standing Counsel for the Government of India; Mrs.R.Vaigai, learned Senior Counsel appearing for the employees, Mrs.Rita Chandrasekaran, learned counsel appearing for the Hindustan Photo Films Manufacturing Company Limited, and Mrs.Hema Muralikrishnan, learned Senior Standing Couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 of 2015. 4. The Appellant Company was declared as a Sick Industrial Company and the Board for Industrial and Financial Reconstruction (BIFR) vide order dated 30.01.2003, recommended the winding up of Hindustan Photo Films Manufacturing Company Limited. On appeal, the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) vide order dated 07.06.2005, confirmed the order of BIFR. The Ministry of Heavy Industries and Public Enterprises, Government of India, by its letter dated 20.03.2014, approved the VRS package for the employees of Hindustan Photo Films Manufacturing Company Limited. Hindustan Photo Films Manufacturing Company Limited issued a Circular dated 21.03.2014 with regard to the implementation of VRS package. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia. By the said proceedings it was conveyed that a sum of Rs.181.54 Crore in the form of Non-Plan Loan from the lump sum provision for 'implementation of Voluntary Retirement Scheme and Statutory Dues' is provided for implementation of VRS at 2007 notional pay scales without any arrears as one time relaxation of DPE guidelines for all the employees of HPF. 9. Admittedly, the Hindustan Photo Films Manufacturing Company Limited is a Public Sector Undertaking. As a policy decision, a scheme of VRS was floated by the Central Government, for which most of the workers opted. The remaining workers opted later by 15.10.2016. But, as submitted by the learned senior counsel for the workmen the fact remains that in C.P.No.114 of 2003, dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rkmen. When such of petitions are filed by the remaining workmen through the association seeking for extension of the benefit, the decision taken by the person on behalf of the Central Government it appears to be without appreciating the Scheme floated by the Government to protect the interests of the workmen to put an end of the litigation to settle the VRS to all the workmen. 11. It appears the workmen in the writ petitions have already accepted VRS Scheme. Counsel appearing for the company contends that when the valuable quarters which are in occupation of the workmen, unless they vacate they will be in a difficult position to proceed further for liquidation. 12. In the meanwhile, there is also claim of the Income Tax Department to ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ready observed by this Court it should not be in the way of the right available to the Department with regard to challenge of the said finding by the learned Single Judge. There is a direction in respect of other workers to deposit the TDS amount in a ESCROW Account. The same will apply to the workers herein also. 14. In such view of the matter while dismissing the appeals preferred by the Government of India, the writ appeal filed by the Hindustan Photo Films Company is disposed of directing the Company not to initiate proceedings to wind up the Company so as to create a charge on some other person. The first charge over the assets of the company is in favour of the workmen. Since the Central Government has undertaken to settle the matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it could be delayed elsewhere.
16. We modify the order of the learned Single Judge to the effect that there is no burden on the company to that extent. So far as the liquidation proceedings is concerned, the first charge over the assets of the company will be on the Central Government since they step into the shoes of the workmen by taking over to discharge the burden of the company by way of VRS Scheme and for the remaining charge is concerned it is for the liquidator to decide on the issue.
17. Accordingly, we dispose of the appeal filed by the Company, modifying the order of the learned Single Judge. Two months time is granted to the Central Government to implement the VRS Scheme from the date of receipt of this order. X X X X Extracts X X X X X X X X Extracts X X X X
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