TaxTMI 
TaxTMI 
1987 (4) TMI 370
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....-Heard learned counsel for the petitioners as well as the respondent, the various financial institutions including the banks and also counsel for the State of Bihar. By orders of this Court dated 5th February, 1986, it was directed that all salaries and wages due to the workers from May, 1984, onwards shall be paid to them in three instalments. It appears that they have not yet been paid in spite of directions from this court. It was also brought to our notice that notwithstanding that order of this Court, the State of Bihar has issued a notification dated 12th December, 1986, wherein this industry has been declared to be a sick industry under section 3 of the Bihar Relief Undertakings (Special Provisions) Act, 1981 (Bihar Act No. 12 of 198....
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....d the society in general and in that scheme of starting the industry, again financial problems may arise and if this stock is sold out and the money collected therefrom is paid out to the workers, then it may create difficulties. It is no doubt true that these products the stock of which have been shown in the report and the value of which has been shown by the liquidator as Rs. 91,77,000 is pledged with banks, is a priority in law in favour of the banks but it also could not be disputed that these stocks were the products of this industry before its closure and, therefore, the workers also contributed their labour and it is the result of their hard work that these stocks could be produced and in our opinion, therefore, it could not be sai....
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....s should be paid their dues up to the date of closure (from May, 1984, to July, 1984, i.e., 8th July, 1984) so that at least they will get something for subsistence. Learned counsel for the State Bank of India pointed out that his client has paid for the insurance of certain assets and for loss thereof in whole or in part, the insurance has paid for the loss. The official liquidator may keep that amount separately and allow the State Bank to adjust the same against its insurance. So far as the pledge and the priority of the financial institutions are concerned, we have no doubt that they have other sufficient securities and properties of the company and, therefore, if this stock of finished products are sold to meet the basic requirements o....