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Workmen's funds released for immediate payment, compromise scheme explored to prevent eviction The court directed the release of funds deposited with banks for immediate disbursal to workmen, with specific amounts allocated to different institutions ...
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Workmen's funds released for immediate payment, compromise scheme explored to prevent eviction
The court directed the release of funds deposited with banks for immediate disbursal to workmen, with specific amounts allocated to different institutions for payment to beneficiaries. Instructions were given to expedite the transfer of investments and follow up on funds with interest. Additionally, respondent no. 2 was tasked with exploring a compromise scheme in compliance with the NCLT order, leading to the decision not to act on an eviction notice, ensuring workmen were not at risk of eviction. The next hearing was scheduled for compliance updates and further proceedings.
Issues: 1. Distribution of monies to workmen under separate scheme managed by EPFO. 2. Release of funds deposited with banks for immediate disbursal to workmen. 3. Compliance with NCLT order for exploring compromise scheme by Official Liquidator.
Analysis: 1. The petitioner's counsel highlighted that approximately Rs. 550 crores are payable to the workmen, with Rs. 200 crores already deposited towards the Employees' Provident Fund (EPF) and managed separately. Out of this, Rs. 130 crores were invested in securities by HDFC Bank, Rs. 37 crores transferred to the Regional Provident Fund Commissioner, and Rs. 30 crores deposited with UCO Bank. The Reserve Bank of India was requested by UCO Bank to transfer the funds to the Provident Fund Commissioner.
2. The Official Liquidator's counsel mentioned documents attached to an affidavit and granted three weeks to EPFO-respondent no. 3 to file a counter-affidavit regarding the release of the Rs. 37 crores plus accrued interest to the beneficiaries/workmen. The urgency was emphasized due to the workmen's prolonged lack of payment, with some having passed away. The court directed respondent no. 2 to liaise with HDFC Bank to expedite the transfer of investments to the Provident Fund Commissioner and to follow up with UCO Bank and RBI concerning the Rs. 30 crores with interest.
3. Respondent no. 2 was instructed to explore a compromise scheme as per the NCLT order, leading to the decision not to act on the eviction notice. This decision ensured that there was no imminent threat of workmen being evicted from their residences. The court scheduled the next hearing for compliance updates and further proceedings on 25.03.2020.
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