TaxTMI 
TaxTMI 
2009 (1) TMI 486
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....tors who has obtained a Recovery Certificate from the Debts Recovery Tribunal for recovery of Rs. 2,745 lakhs as on 29-9-2000 by the decision of learned Tribunal dated 31-8-2001. 2. The cause of concern of the secured creditor for its inability to recover an amount, which is legitimately due by the failure of Official Liquidator to adjudicate the claims of all secured creditors including the workmen and distribute the sale proceeds, is required to be done. On an earlier occasion when the application has been moved before this Court, an order was passed on 23-11-2006 directing the Official Liquidator to apportion the sale proceeds of the assets of the company-in-liquidation after settling the claims of the creditors at an early date, pref....
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....dment of the workmen since their claims were being adjudicated before Official Liquidator, there was no necessity to implead the Employees Union in the application for interim disbursement. Although the Employees Union had not been impleaded since they were already parties before the Official Liquidator. I had permitted the counsel appearing for the employees also to make their submissions. 4. Applicant has objectors to the claim for interim disbursement or the Official Liquidator who had sounded in unison that so long as the claim of the workers have not been settled and the Chartered Accountant has not finalised the report, it shall not be fair to accommodate the claims of the applicant only. The learned counsel appearing for the emplo....
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....of the amount and to that extent the other persons like the workers who rank in their claims at par shall be deprived of that benefit. 6. I see the weight of objections raised on behalf of the workmen and the counsel for the Official Liquidator. The power of the O.L. to make interim disbursals itself cannot be a matter of serious doubt. If all relevant materials are available and a substantial body of creditors are identified, it shall always be possible to make interim disbursals, which would subject to the final outcome of the adjudication after entertaining claims from all quarters. The gravity of the problem is seriously experienced only by the fact that the sale processes have taken place even in the year 2006 and the first directio....
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....rred for the conduct of sale could be disbursed in favour of the applicant-company. This is wholly provisional and the amount could be disbursed on securing an undertaking that if there is any amount paid in excess than what the company financed, it shall reimburse the same. There shall be also a further liability on the Company to pay interest @ 9 per cent from the date of disbursement till the date when accounts are drawn finally after considering all the claims and when the money is distributed to the workmen also. The direction for payment of interest by the Company that obtains a premature withdrawal was approved by a decision of a Division of the Madras High Court in ICICI Bank Ltd. v. Official Liquidator [2008] 142 Comp. Cas. 1^1. Th....