JUDGMENT :

A.S. CHANDURKAR, J.

1. The question of inter se priority in recovering dues from a company that has become non-functional but has not been wound up arises for adjudication in this writ petition. The Employees’ Union and the Secured Creditor claim to have priority over each other with regard to their respective dues.

2. Khandelwal Tube Mill (for short, hereinafter referred to as ‘the Company’) was engaged in the business of production and sale of steel pipes. It had engaged about 350 employees whose service conditions were governed by the provisions of the Maharashtra Industrial Relations Act, 1946 (for short, hereinafter referred to as ‘the Act of 1946’). Khandelwal Tube Mill Kamgar Sangh (for short, hereinafter referred to as ‘the Union’) is a representative Union under Section 14 of the Act of 1946 representing all employees at the Company. The Company was not regular in paying the wages to its employees on the agreed dates and hence the Union filed Complaint (ULP) No.219 of 1999 in the Industrial Court, Nagpur alleging commission of an unfair labour practise. That complaint was decided on 02.04.2002 and the Company was directed to pay wages to its employees on every 7th