Summary
After the Supreme Court's judgment of 4 December 2019 upholding the right of employees of a sugar factory in liquidation to be paid their wage dues by the secured creditor bank out of the auction proceeds, the bank sought transfer of the Rs. 3.52 crores it had deposited in Court under an interim order, now about Rs. 4.96 crores with interest, to the Collector, Bhandara, return of any excess, and directions requiring employees to prove their claims. Noting that a further Rs. 13.90 crores lay with the Industrial Court, the Court directed both amounts to be transferred to the Collector, who is to verify claims and pay the salary and wage dues with 7.5 per cent interest directly into the employees' or legal heirs' bank accounts by 31 December 2023, any balance to be dealt with in accordance with law and paid to the bank.
Issues
- How the amounts deposited by the secured creditor bank in the Supreme Court and the Industrial Court towards the wage dues of employees of a sugar factory in liquidation are to be disbursed in implementation of the judgment dated 04.12.2019 in Civil Appeal No. 232 of 2016.
Held
- The judgment dated 04.12.2019 held that the bank must pay the employees' dues of salary and wages out of the auction sale proceeds, while other statutory dues such as provident fund, gratuity and bonus were fastened on the subsequent purchaser; the wage dues as certified by the Collector as on 23.08.2011 are to be paid out of the deposits of Rs. 3.52 crores with interest lying in Court and Rs. 13,89,84,334 lying with the Industrial Court. (¶¶ 2, 3)
- To ensure that money reaches the right persons, both deposits with accrued interest are to be transferred to the account of the Collector, Bhandara, who shall disburse the salary and wage dues with interest at 7.5 per cent directly into the bank accounts of the employees or their legal heirs after proper identification and verification, in a transparent manner and not later than 31 December 2023; any balance is to be dealt with in accordance with law and paid to the bank towards its dues. (¶¶ 3, 4)
Result
Delay condoned; miscellaneous applications disposed of with directions that the Rs. 3.52 crores deposited in the Supreme Court and the Rs. 13,89,84,334 lying with the Industrial Court, Bhandara, both with accrued interest, be transferred to the Collector, Bhandara for disbursement of salary and wage dues with 7.5 per cent interest to the employees or their legal heirs by 31.12.2023 after verification, the balance to be dealt with in accordance with law and paid to the appellant bank.