Press Information Bureau

Government of India

Ministry of Corporate Affairs

21-May-2012 16:57 IST

Settlement of Claims of Employees of DMIL

The winding up petition of M/s Daewoo Motors (India) Ltd. was filed in the Delhi High Court on 05.02.2003. The company is presently under liquidation.

The factory of the company was sold under the orders of the Debt Recovery Tribunal (DRT), Mumbai. The sale proceeds are still with the DRT, Mumbai.

A committee appointed to scrutinize the claims of the workmen of the company has already submitted its report to the Hon’ble Delhi High Court where the matter is pending adjudication.

This information was given by the Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh in the Rajya Sabha today in reply to a written question whether it is also a fact that the liquidator had sold the company to Argentum Motors four years back without settling the claims of employees and the action being taken by the liquidator and the time-frame to settle the claims of the employees who are reeling under price rise and unemployment.

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ST/-

Employee claim settlement: liquidation sale proceeds held by tribunal delay resolution of workmen's claims pending adjudication. The winding up petition against M/s Daewoo Motors (India) Ltd. led to liquidation; the factory sale ordered by the Debt Recovery Tribunal produced proceeds now held by that Tribunal. A committee tasked with scrutinizing workmen claims has submitted its report to the Delhi High Court, and employee claims remain pending adjudication. Allegations exist that the liquidator sold the company to a third party without settling employees' claims and queries have been raised about actions and timeframes to resolve those claims.