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Gujarat High Court

Textile Labour Association vs Official Liquidator Of Omex Investors ... on 14 October, 2014

Author: N.V.Anjaria

Bench: N.V.Anjaria

        O/COMA/184/2014                                      ORDER




         IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

               COMPANY APPLICATION NO. 184 of 2014

               In COMPANY PETITION NO. 156 of 1989
===========================================================
             TEXTILE LABOUR ASSOCIATION....Applicant(s)
                             Versus
 OFFICIAL LIQUIDATOR OF OMEX INVESTORS LTD & 5....Respondent(s)
================================================================
Appearance:
MR DS VASAVADA, ADVOCATE for the Applicant(s) No. 1
MR ANIP A GANDHI, ADVOCATE for the Respondent(s) No. 4
MS AMEE YAJNIK, ADVOCATE for the Respondent(s) No. 1
MR KAMAL B TRIVEDI, SR. ADVOCATE WITH MS SK VISHEN, ADVOCATE
for the Respondent(s) No. 5
NOTICE NOT RECD BACK for the Respondent(s) No. 3
NOTICE SERVED for the Respondent(s) No. 2
SINGHI & CO, ADVOCATE for the Respondent(s) No. 6
================================================================

        CORAM: HONOURABLE MR.JUSTICE N.V.ANJARIA

                           Date : 14/10/2014

                                ORAL ORDER

Since last two occasions when the matter was taken up for hearing, avoidable controversy was generated with regard to the directions issued by the Division Bench for disbursement of the amount in question to the workers passed in order dated 17th September, 2014 in Civil Application (OJ) No.525 of 2014 in O.J. Appeal No.36 of 2014 and cognate matters.

2. Upon hearing the parties concerned, this Court passed following orders. On 01st October, 2014, Page 1 of 5 O/COMA/184/2014 ORDER "On 23th September, 2014 following order was passed:

"In order that the Official Liquidator is facilitated to undergo the procedure at his end to disburse the amount required to be disbursed to the workers as per the observations and directions of Hon'ble the Division Bench in oral order dated 17.09.2014 in Civil Application (OJ) No. 525 of 2014 in O. J. Appeal No. 36 of 2014, the matter shall stand over to 1st October, 2014."

2. Learned advocate Mr.D.S. Vasavada for the workers made a grievance that Official Liquidator is not issuing Forms in respect of disbursement. Responding to this grievance, it was stated by learned advocate Ms.Amee Yajnik for the Official Liquidator that Forms will be issued to the workers, if they approach for the purpose to the Official Liquidator.

3. It was further stated that amount in question was deposited with the Registry of this Court and is in the process of transferring the same to the accounts of Official Liquidator, for which a formal communication is already addressed by the Official Liquidator to the Registry.

4. Learned advocate for the workers was vehement in submitting that the workers should not be deprived of their money which is ordered to be disbursed by the Division Bench unduly long. Neither this proposition is in dispute nor the binding nature of the observation of the Division Bench.

5. Put up for further orders on 09th October, 2014."

3. Thereafter, on 09th October, 2014, further order was passed which reads as under:

Page 2 of 5

O/COMA/184/2014 ORDER "Pursuant to order dated 01st October, 2014, it was stated that necessary forms have been disbursed from the office of the Official Liquidator. It was next stated that Official Liquidator has approached the Division Bench with regard to the directions passed in order dated 17th September, 2014 in Civil Application (OJ) No.525 of 2014 and cogent matters and further that the said matter before the Division Bench is to next come up on 13th October, 2014.

In view of above position obtained, all the learned advocates jointly requested that the matter may be kept on 14th October, 2014.

Accordingly the matter is adjourned to 14th October, 2014."

4. Today when the matter came up, Learned advocate Ms.Amee Yajnik for the Official Liquidator stated that the application made by the Official Liquidator before the Division Bench seeking certain clarification in respect of the order of the Division Bench is yet to be taken up for effective hearing.

4.1 On the other hand, learned advocate Mr.D.S. Vasavada for the application-Association, learned senior counsel Mr.Kamal Trivedi as well as learned advocate Mr.Sandeep Singhi appearing for respondent Nos.5 and 6 respectively emphasised that the Official Liquidator is under obligation to disburse the amount as per the directions of the Division Bench. According to them the clarification prayer in the present scenario, is hypothetical in nature, and in any view, its pendency should not arrest the process of disbursement for which directions are already given by the Division Bench.

Page 3 of 5

O/COMA/184/2014 ORDER

5. The order dated 17th September, 2014 passed by the Division Bench has directed as under:

"Since the main appeal is to be listed for final hearing on 30th September, 2014, the stay granted by the learned Single Judge vide order dated 28.8.2014 shall continue till the final hearing of the appeal. However, as recorded by the learned Company Judge in paragraph-46D of the impugned judgment, it shall be open for the Official Liquidator to disburse the dues of the workers after due verification. However, instead of disbursing the dues of the workers out of Rs.14 crores deposited by the first respondent herein, Rs.7 crores each shall be disbursed from the amount deposited by the appellant and the opponent No.1. Since the opponent No.1 has deposited Rs.14 crores with the Registry, the entire amount shall be transferred to the Official Liquidator, out of which, Rs.7 crores shall be disbursed towards the dues of the workers and the remaining Rs.7 crores shall be kept in a fixed deposit in terms of the directions issued by the learned Single Judge."

5.1 It is in respect of the aforesaid directions that the Official Liquidator has perceived a need for clarification and application in that regard is filed, as stated above. The contention of the other side that the aforesaid directions are quite clear and the amount is required to be disbursed amongst the workers could not be at the same time, brushed aside.

5.2 Since the directions above, as they stand, do not found to be booking any ambiguity, this Court passed the above quoted earlier orders on 01st October, 2014 and 09th October, 2014. The Official Liquidator has distributed forms for disbursement pursuant to the Page 4 of 5 O/COMA/184/2014 ORDER said orders. The members of the applicant-Association shall submit back those forms duly filled. In respect of the grievance made by learned advocate Mr.Vasavada that Official Liquidator has been insisting for mentioning the date of the order, it is observed that such incident is uncalled for in asmuch as the directions of the Division Bench are clear and operative, as they stand today.

5.3 Therefore, the process of disbursement in compliance of the directions of the Division Bench above shall not be haulted.

6. It is further expected, observed and directed that the Official Liquidator shall pursue his application filed for clarification before the Division Bench expeditiously. It is further observed that the compliance of the directions of the Division Bench in order dated 17th September, 2014 above shall be informed, shall be guided and shall be subjected to the order which may be passed and/or clarification, if any, made by the Division Bench.

7. Resting at this stage, the matter shall stand over to 14th November, 2014.

(N.V.ANJARIA, J.) Anup Page 5 of 5