IN THE HIGH COURT OF GUJARAT
S.J. MUKHOPADHAYA, J.B. PARDIWALA, JJ.
Patel Vimlaben Mafatlal - Appellant
Versus
Official Liquidator, Cellulose Products of India Ltd. - Respondent
O.J. Appeal No. 58 of 2009 in Company Application No. 377 of 2008 in Company Petition No. 226 of 2007
Decided On : 24-02-2011
Companies Act, 1956 - Section 483 - Appeal against order passed by Company Judge - Industrial Disputes Act, 1947, Schedule 2, Item 3, Section 25F - Appeal arises in backdrop of following factual background was an employee of a company running in name of Cellulose Products of India Limited dismissed from service order of dismissal was challenged before Labour Court and quashed irected company to pay back wages - Petitioner dismissed from service in year - Unit got closed and manufacturing activity of company stopped from dismissal and directed company to pay back wages - lower strata of society fortuitous cannot be asked to pay heavy price - Held, Judgments of Ape Court large number of decisions has assigned that payment of adequate compensation place of direction to reinstatement service would subserve ends of justice - Appeal against by company ordered to be wound up during pendency of appeal and official liquidator appointed - Court in appeal that employee would not be entitled to back wages because of closure or manufacturing activity - Not proper - Employee cannot be made to suffer on this account payment as per settlement between Govt. and identically situated workmen and retrenchment compensation already ordered to be paid by way of interim order - Appeal allowed
J.B. Pardiwala, J.
1. The present appeal filed u/s 483 of the Companies Act, 1956 is directed against order passed by the learned Company Judge in Company Application No.377 of 2008 in Company Petition No.226 of 2007.
2. The present appeal arises in the backdrop of the following factual background.
3. Late Shri Mafatlal Gordhandas Patel was an employee of a company running in the name of Cellulose Products of India Limited (now under liquidation). In the year 1993 he was dismissed from service. The order of dismissal was challenged before the Labour Court and the Labour Court quashed and set aside the order of dismissal and directed the company to pay back wages from the date of dismissal up to the date of superannuation i.e. from 1993 to 2001. It appears from the record of the case that the company challenged the said award by way of filing Special Civil Application No.9028 of 2000 before this Court. The matter was admitted and the order of payment of back wages was stayed. During the pendency of Special Civil Application No.9028 of 2000 the company was ordered to be wound up and the Official Liquidator was appointed for managing the affairs of the company vide order dated 16th May 2008. Special Civil Application No.9028 of 2000, which was preferred by the company and which was pending for final disposal was taken up for hearing on 16th May 2008 and the learned Single Judge passed the following order:
1. The petitioner company, namely Cellulose Products of India Limited has filed this petition for quashing and setting aside the impugned award dated 16th September 1999 passed by the Presiding officer, Labour Court, Ahmedabad in Reference No. LCA No. 1462 of 1993. This Court has admitted the said petition and granted interim relief against the payment of backwages. During the pendency of the said petition, Civil Application No. 4420 of 2007 was filed by Shri Mafatlal G. Patel, the Respondent in the said Special Civil Application No. 9028 of 2008. In the said Civil Application the Court has directed the Registrar to present the Civil Application along with the Company Petition No. 226 of 2007 before the learned Company Judge. Accordingly these two applications are heard along with Company Petition No. 226 of 2007. This Court has passed an order today in Company Petition No. 226 of 2007 directing the company to be wound up u/s 433(a) of the Companies Act, 1956. In view of the said winding up order and in view of the observations made therein, the present Special Civil Application as well as Civil Application no longer survive. The Official Liquidator is in charge of the Affairs of the company and he will adjudicate the claim of the concerned workman, namely, Shri Mafatlal G. Patel and distribute the amount in his favour, out of the amount which is to be received from Registrar of Gujarat High Court with whom the IIBI has deposited a sum of Rs 64.05 lacs. If necessary the concerned workman may also lodge his claim with the Official Liquidator and the Official Liquidator will decide the said claim in accordance with the provisions of the Companies Act 1956. If the claim of the concerned workman is not satisfied, it is open for him to move an appropriate application for redressing the grievance.
2. Subject to the aforesaid directions and observations the above Special Civil Application as well as Civil applications are accordingly disposed of.
4. It is evident from the order passed by the learned Company Judge that the Appellant was given liberty to lodge his claim with the Official Liquidator and the Official Liquidator would decide the claim in accordance with the provisions of the Companies Act. The learned Company Judge also observed that if the claim of the Appellant is not satisfied, it would be open for him to move an appropriate application to redress his grievance.
5. The manufacturing activities of the company got stopped from 1998 and because of this the Appellant could not claim back wages for the period from 1998 up
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