2014 (9) TMI 1251 - HC - Companies Law

Stay Extended, Workers' Dues Disbursement Authorized, Funds Transferred.

Vedica Procon Private Limited Versus Balleshwar Greens Pvt Ltd & 8

The High Court extended the stay on proceedings until the final appeal hearing, emphasizing its continuation as per the impugned judgment. The Official ... Continuation of stay till final hearing of appeal - Service of notice - HELD THAT:- 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 ₹ 14 crores deposited by the first respondent herein, ₹ 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 ₹ 14 crores with the Registry, the entire amount shall be transferred to the Official Liquidator, out of which, ₹ 7 crores shall be disbursed towards the dues of the workers and the remaining ₹ 7 crores shall be kept in a fixed deposit in terms of the directions issued by the learned Single Judge. Issues: Stay of proceedings, Disbursement of dues to workers, Transfer of funds to Official LiquidatorStay of Proceedings:The High Court, in its judgment, continued the stay granted by the learned Single Judge until the final hearing of the appeal scheduled for September 30, 2014. The Court emphasized that the stay would remain in effect, as mentioned in the impugned judgment. The Official Liquidator was permitted to disburse the workers' dues after proper verification. Notably, the disbursement was to be made from the funds deposited by the appellant and the opponent No.1. The respondent No.1 had deposited a significant amount, and the entire sum was to be transferred to the Official Liquidator. Out of this amount, &8377; 7 crores were to be allocated for the workers' dues, while the remaining &8377; 7 crores were to be placed in a fixed deposit as per the Single Judge's directives.Disbursement of Dues to Workers:The judgment addressed the crucial issue of disbursing the dues of the workers. It stipulated that &8377; 7 crores each should be disbursed from the funds deposited by the appellant and opponent No.1. This decision was made to ensure that the workers' dues were settled appropriately. The Official Liquidator was entrusted with the responsibility of verifying the dues before making the disbursements. The Court's directive aimed to safeguard the workers' interests and ensure that their rightful entitlements were duly met.Transfer of Funds to Official Liquidator:Another significant aspect of the judgment pertained to the transfer of funds to the Official Liquidator. The entire amount deposited by the respondent No.1 was to be transferred to the Official Liquidator for disbursement purposes. This transfer was crucial for facilitating the payment of workers' dues and complying with the directives issued by the learned Single Judge. The Court's decision to transfer the funds underscored the importance of ensuring proper management and distribution of financial resources in the context of the case.