Wages under company winding-up law include unavailed privilege leave pay and attract priority for workmen's dues.

Clerks engaged in preparing a statement of claim were treated as entitled to immediate remuneration because the work was undertaken at the Court's instance, though the amount claimed was found excessive and reduced. The document also explains that, for winding-up priority under the Companies Act, "workmen's dues" are read with labour-law definitions of wages, so amounts payable in lieu of unavailed earned or privilege leave fall within wages for a workman and attract priority under sections 529 and 529A. The guiding principle stated is that wages in this context must be construed consistently with labour legislation.

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Issues: (i) Whether the clerks engaged in preparing the statement of claim were entitled to remuneration and, if so, at what rate. (ii) Whether wages payable in lieu of unavailed privilege leave form part of workmen's dues for the purpose of priority under sections 529, 529A and 530 of the Companies Act.

Issue (i): Whether the clerks engaged in preparing the statement of claim were entitled to remuneration and, if so, at what rate.

Analysis: The statement of claim had been prepared at the instance of the Court with the assistance of clerks, and there was no reason to defer payment until the final winding up orders. At the same time, the amount claimed was considered excessive having regard to the nature of the work and the time taken.

Conclusion: The clerks were held entitled to immediate remuneration, but the amount was reduced to Rs. 1,500 each, aggregating Rs. 12,000.

Issue (ii): Whether wages payable in lieu of unavailed privilege leave form part of workmen's dues for the purpose of priority under sections 529, 529A and 530 of the Companies Act.

Analysis: The expression "workmen's dues" under the Companies Act was read with the labour law concept of "wages". The definitions in the Industrial Disputes Act and the Payment of Wages Act were treated as showing that wages include remuneration referable to leave period and, therefore, sums payable for unavailed earned or privilege leave. The priority under section 529A was held to extend to such dues in the case of a workman as defined in section 529(3)(a).

Conclusion: Wages payable in lieu of unavailed privilege leave were held to be included in workmen's dues and entitled to priority under sections 529 and 529A of the Companies Act.

Final Conclusion: The application succeeded on the question of remuneration to clerks and on the substantive interpretation of workmen's dues, and the Official Liquidator was directed to examine the claims accordingly and report back for further orders.

Ratio Decidendi: For purposes of winding up priority, the term "wages" in the Companies Act must be construed in conformity with labour law definitions so as to include amounts payable for unavailed privilege leave.

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