Court orders refund of excess amount, prioritizes workmen's dues, and approves accountant's fees payment in Company Applications.

The Court directed SBI to refund the excess amount to PNB in Company Applications regarding payment shares. Workmen's dues were prioritized for payment from sale proceeds, with the Official Liquidator instructed to disburse funds accordingly. The Chartered Accountant's pending fees were ordered to be paid in full. Prosecution requests under the Income Tax Act were dismissed due to satisfactory explanations. Overall, the Court ensured fair fund disbursement and protected the rights of all parties involved.

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Issues Involved:
1. Payment of correct share to Punjab National Bank (PNB) in Company Applications No.32 of 2016 and 13 of 2018.
2. Release of workmen’s dues in Company Applications No.35 of 2016, 21, 22, and 7 of 2018.
3. Payment of Chartered Accountant’s fees in Company Application No.23 of 2018.
4. Request for launching prosecution under Section 276C(2) of Income Tax Act in Company Applications No.16 and 17 of 2018.

Issue-wise Detailed Analysis:

1. Payment of Correct Share to Punjab National Bank (PNB):
Company Applications No.32 of 2016 and 13 of 2018 were filed by PNB for the payment of the correct share as determined by the Chartered Accountant. The Chartered Accountant initially determined PNB's share as 67.64% and SBI's share as 32.36%. However, after a clerical mistake was identified, the revised report corrected PNB's share to 71.50% and SBI's to 28.50%. The Official Liquidator admitted the error and requested SBI to refund the excess amount of Rs. 35,10,107/- along with interest. The Court directed SBI to refund the excess amount to PNB.

2. Release of Workmen’s Dues:
Company Applications No.35 of 2016, 21, 22, and 7 of 2018 involved the release of workmen’s dues from the sale proceeds of the company’s assets. The Apex Court's judgment in Bank of Maharashtra v. Pandurang Keshav Gorwardkar established that the relevant date for disbursing sale proceeds is the date of the winding-up order. The winding-up order was passed on November 8, 2001, and affirmed on December 30, 2005. The verified claims of workmen totaled Rs. 3,66,37,825/-. The Court ordered the disbursement of Rs. 12.00 Crore, with Rs. 3,66,37,825/- to be paid to the workmen first, and the remaining amount to be distributed among the secured creditors on a pro-rata basis. The Official Liquidator was directed to release the payment within one month, subject to the submission of bank account details by the workmen.

3. Payment of Chartered Accountant’s Fees:
Company Application No.23 of 2018 was filed by Chartered Accountant Shri Ravi Chand Sood for the release of his fees. The Chartered Accountant’s bills, pending since 2012, amounted to Rs. 9,23,220/-. The Court noted that the remuneration was to be determined on a case-to-case basis, depending on the nature and quantum of work. Given the extensive work detailed by the Chartered Accountant and the lack of response from the Official Liquidator, the Court directed the Official Liquidator to pay the full amount of the bills within one month.

4. Request for Launching Prosecution under Section 276C(2) of Income Tax Act:
Company Applications No.16 and 17 of 2018 involved requests from the Principal Commissioner of Income Tax for launching prosecution against the company for delayed tax payments for the Assessment Years 2013-14 and 2014-15. The Official Liquidator explained that the delay was due to the bank not crediting TDS on interest income and the lack of a demand letter from the Income Tax Department. The tax was paid immediately upon receiving the notice of prosecution. The Court found the explanation satisfactory and dismissed the applications for prosecution.

Conclusion:
The Court addressed each issue comprehensively, directing the refund of excess amounts, prioritizing the payment of workmen’s dues, ensuring the Chartered Accountant’s fees are paid, and dismissing the prosecution requests due to satisfactory explanations from the Official Liquidator. The judgments were aimed at ensuring fair and lawful disbursement of funds while protecting the rights of all parties involved.

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