2008 (12) TMI 405

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....icting opinion on the issue raised in the present matter hence the aforesaid referral. 2. The issue before us is : Whether sections 529, 529A, 530 of Companies Act, 1956, read with Rules 6 and 9 of the Companies (Court) Rules, 1959, read with section 35 of the Civil Procedure Code, 1908 empower the Court to award interest to the workmen/employees from the date of winding up order? 3. The Company Application has been filed to direct the Official Liquidator of the High Court, Bombay to pay interest at the rate 12 per cent per annum or such other amount on the entire dividend to the employees from the date of winding up till the actual payment of the entire amount due and payable to the workers. The above company was ordered to be wou....

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....y may be paid in priority to other debts. Rule 6 will be attracted in the present situation. Rule 6 provides that the practice and procedure of the code so far as applicable shall apply to the proceedings under the Act. The workers thus will be clearly entitled to claim interest under section 34 of the Civil Procedure Code in the absence of any specific rule in that behalf under the Companies (Court) Rules." 5. The learned Counsel appearing on behalf of Official Liquidator contended that the reliance placed on Rule 6 is clearly misplaced because Rule 6 only deals with Practice and Procedure of the Code. In his submission, by this process and by referring to Rule 6 read with Rule 9, section 34 of the Civil Procedure Code cannot be invoked....