Workmen's pari passu priority under company winding-up law does not extend to secured-creditor interest or claimed bonus and notice pay.

Section 529A of the Companies Act, 1956 gives workmen pari passu priority with secured creditors in distribution from realised assets, but it does not place workmen's claims on the same footing as secured creditors for interest after winding up and before sale of assets. Workmen therefore cannot claim interest at the same rate as secured creditors on their dues. Bonus under the Payment of Bonus Act, 1965 and notice pay under Section 25 of the Industrial Disputes Act, 1947 were also held not to fall within the statutory dues treated as recoverable in the manner claimed under Sections 529 and 530, so those claims were not accepted.

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Issues: (i) Whether workmen, while receiving payment pari passu with secured creditors under Section 529A of the Companies Act, 1956, are entitled to claim interest at the same rate as secured creditors on their dues after winding up and until sale of the assets. (ii) Whether bonus under the Payment of Bonus Act, 1965 and notice pay under Section 25 of the Industrial Disputes Act, 1947 form part of statutory dues under Section 530 of the Companies Act, 1956.

Issue (i): Whether workmen, while receiving payment pari passu with secured creditors under Section 529A of the Companies Act, 1956, are entitled to claim interest at the same rate as secured creditors on their dues after winding up and until sale of the assets.

Analysis: The expression pari passu in Section 529A was held to govern the mode and priority of payment, not to equate the nature or incidents of the underlying claims. Workmen's dues remain distinct from the contractual and decree-based interest payable to secured creditors. The provision ensures equal treatment in distribution from the realised assets, but does not create a right in workmen to claim the same interest that secured creditors receive.

Conclusion: The claim for interest at par with secured creditors was rejected.

Issue (ii): Whether bonus under the Payment of Bonus Act, 1965 and notice pay under Section 25 of the Industrial Disputes Act, 1947 form part of statutory dues under Section 530 of the Companies Act, 1956.

Analysis: Workmen's dues under Section 529(3)(b) are confined to the categories specifically enumerated therein. Bonus was held not to fall within wages or workmen's dues for the purpose of pari passu payment, and the claim for inclusion of bonus as a statutory due under Section 530 was not accepted. The same approach was applied to the notice pay claim.

Conclusion: Bonus and notice pay were held not to be statutory dues payable in the manner claimed.

Final Conclusion: The appeals failed because the statutory scheme under the Companies Act, 1956 did not extend pari passu treatment to interest claims of workmen or treat the claimed bonus and notice pay as recoverable statutory dues in the asserted manner.

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