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7] The grievance of learned counsel for the petitioners is that, there is no privity of contract between the petitioners banks and respondent No.1. In the complaint also, no relief or claim was made against the petitioners banks. They were only added as parties subsequently. It is submitted that as per Consent Terms, the charge of these employees is only by paripassu under Section 529-A of the Companies Act, Section 529-A of the Act, will come into operation 34 wp 13739 of 2017 only in the case of winding up of the company. The company is still running and as such according to learned counsel for the petitioners both the Courts below have committed an error in fastening the liability on the petitioners for payment of retrenchment compensation to the respondent No.1.

8] Now in order to deal with this contention, it is necessary to take recourse to the Consent Terms, copy of which is produced on record. Clause Nos. 3 and 4 of the Consent Terms are relevant and they read as follows :

"3. In so far as workers are concerned, if they have obtained any award or decree from any court of competent jurisdiction and if they are entitled to paripassu charge under Section 529 -A of the Companies Act, then in that event, plaintiffs and other Banks and financial institutions to whom the sale proceeds have been paid under this order shall discharge that liability, in accordance with the principles of paripassu charge provided under Section 529A of the Act.
4. In so far as other employees are concerned who are not entitled to such protection under Section 529-A, they will stand along with unsecured creditors and their rights will be covered by the same provision, as made in respect of unsecured creditors".

9] Thus, these Consent Terms make it clear that, in case of 34 wp 13739 of 2017 workers, if they have obtained any award or decree from any court of competent jurisdiction, and if they are entitled to paripassu charge under Section 529-A of the Companies Act, then it would be the responsibility of the petitioner banks to discharge that liability in accordance with the principles of paripassu charge provided under Section 529-A of the Act.

10] Therefore, plain reading of these two clauses in the Consent Terms, does not contemplate at all that only if the company goes into process of winding up, the liability of the petitioner banks can be invoked. In fact it was specifically provided in clause Nos. 3 & 4 of the Consent Terms, that the charge of the employees who have obtained award or decree from any court or competent jurisdiction and if they are entitled to paripassu charge under Section 529 of the Company Act, their compensation will be paid as secured creditors. 11] Thus, both the Labour Court and Revisional Court, after considering the entire Consent Terms and after having regard to the provisions of law, have rightly fastened the liability of payment of compensation, on the present petitioners.