Karnataka High Court
Smt Lakshmamma vs The Mysore Kirloskar Ltd on 23 January, 2014
Bench: Dilip B.Bhosale, B.Manohar
1
IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE 23RD DAY OF JANUARY 2014
PRESENT
THE HON'BLE MR.JUSTICE DILIP B.BHOSALE
AND
THE HON'BLE MR.JUSTICE B.MANOHAR
OSA NO.41/2013
BETWEEN:
1. Smt.Lakshmamma,
Aged about 50 years,
W/o. Late B.H.Karibasappa,
R/at 1st Main, 1st Cross,
Kalidasnagar, Harihar Taluk,
Davanagere.
2. Kum.Devika Rani,
Aged about 18 years,
D/o.Late B.H.Karibasappa,
R/at 1st Main, 1st Cross,
Kalidasnagar, Harihar Taluk,
Davanagere. ...Appellants
(By Sri.Narayana Swamy.K.B., Advocate)
AND:
The Mysore Kirloskar Ltd.,
(Company in Liquidation)
Represented by The Official Liquidator,
Attached to the High Court of Karnataka,
2
"Corporate Bhavan" No.26-27,
12th Floor, Raheja Towers,
Mahatma Gandhi Road,
Bangalore - 560 001. .... Respondent
(By Sri.V.Jayaram, Advocate)
This OSA is filed under Rule 483 of the Companies
Act 1956, praying this Hon'ble Court to set aside the
order dated 22.04.2013 passed by the learned Single
Judge in Company Application No.1417/2012 in
Company Petition No.166/2001 and direct the
Respondent to process their claims and to pay the
amount admissible and due to them and/or to pass any
other order as deemed appropriate in the facts and
circumstances of the case.
This appeal coming on for orders this day,
B.MANOHAR.J., delivered the following:
JUDGMENT
This appeal is directed against the order dated 22-04-2013 passed by the learned Company Judge in C.A. No.1417/2012 in Co.P.166/2001 dismissing the Company Application filed by the appellant.
2. Appellants are the wife and daughter of Late B.H.Karibasappa who was the employee of Mysore Kirloskar Limited, Harihara. The said Company came to 3 be wound up by this Court vide its order dated 01-04-2004. The said Karibasappa died on 21st November 2011. In pursuance of the notification issued by the Official Liquidator inviting the claim petition from the creditors and employees of the liquidated company, the appellants filed a claim petition claiming unpaid wages, closure compensation, gratuity, etc., of the deceased employee. However, the Official Liquidator failed to settle the claim made by the appellants. In view of that, the appellants filed a Company Application seeking direction to the Official Liquidator to process the claim made by them and to settle their dues.
3. The learned Company Judge after considering the matter held that the appellants have failed to produce the Succession Certificate as required under Rule 280 of the Companies (Court) Rules, 1959 and this Court cannot declare the appellants as successors of the deceased employee and dismissed the same. Being 4 aggrieved by the said order, the appellants have filed this appeal.
4. We have carefully considered the arguments addressed by the learned counsel for the appellants Sri.K.B.Narayanswamy and Sri.V.Jayaram, advocate appearing for the Official Liquidator and perused the orders impugned in the appeal.
5. The records clearly disclose that the husband of the first appellant and the father of the appellant 2, late B.H.Karibasappa was an employee of the Mysore Kirloskar Limited. The said Company was ordered to be wound up by this Court vide its order dated 01-04-2004. The said B.H.Karibasappa, died on 21st November 2011. In pursuance of the notification issued by the Official Liquidator inviting applications from the creditors and employees, the appellants filed the claim petition along with the Survivorship Certificate issued by the Tahsildar and also an Indemnity bond. However, 5 the said claim petition was not considered. The Company Application filed by the appellants seeking direction to consider their application was rejected by the Company Judge solely on the ground that no document has been produced to show that they are the legal representatives of the deceased Karibasappa, and Succession Certificate from competent authority is not produced. The records further disclose that in view of winding up of the Mysore Kirloskar Limited, large number of employees working in the said company had filed claim petitions. In the meantime, some of the employees died. Since the Official Liquidator failed to consider the claim petition, the appellants have approached this Court seeking direction to the Official Liquidator to consider their claim. This Court, in large number of cases issued direction to the Official Liquidator to consider the application filed by the employees or their legal representatives after accepting the Survivorship Certificate issued by the competent 6 Tahsildar and settle their dues by taking Indemnity Bond. In Company Application No.1415/2012 disposed of on 14th February 2013, similar order has been passed. We are of the opinion that the appellants cannot be relegated to the Civil Court to obtain Succession Certificate. In large number of cases, the Official Liquidator on accepting the Survivorship Certificate issued by the competent Tahsildar and taking the Indemnity Bond from the applicants has settled the dues. Hence, we are of the opinion that similar direction can be issued to the Official Liquidator to meet the ends of justice. Accordingly, we pass the following:
ORDER The appeal is allowed. The order dated 22-4-2013 made in C.A.No.1417/2012 is set aside. The Official Liquidator is directed to consider the application of the appellants to settle their claim, accepting the Survivorship Certificate issued by the competent 7 Tahsildar and by obtaining Indemnity Bond from them as expeditiously as possible.
Sd/-
JUDGE Sd/-
JUDGE mpk/-*