High Court of Judicature at Madras
The HONOURABLE CHIEF JUSTICE MR. M.Y. EQBAL & The HONOURABLE MR. JUSTICE T.S. SIVAGNANAM
M/s.New Horizon Sugar Mills Ltd.,
Versus
The Commissioner of Labour, Government of Puducherry & Others
W.A.No.1459 of 2010 & M.P.No.1 of 2010
Decided On : 30-09-2010
Sale of assets in auction on failure of borrower to tender dues to secured creditor (Bank) - Sale confirmed on 24-03-2005 and sale certificate issued on 10-08-2005 - Non registration of sale certificate due to order of attachment under Pondicherry Protection of Interests of Depositors in Financial Establishments Act - HELD, Ownership of undertaking stood transferred on 10-08-2005 date of issue of sale certificate - Transfer of undertaking cannot be decreed as on 24-08-2006, because of delay in getting clearance for registration of sale certificate - Hence upto 10-082005 workmen of the establishment shall be entitled to benefits as per Sec. 25FF of ID Act. (Para 19).
Result : Appeal partly allowed.
T.S. Sivagnanam, J
1. This appeal is directed against the order made in W.P.No.11881 of 2010, dated 29.06.2010. The writ petitioner is the appellant.
2. The prayer in the writ petition was for issuance of writ of Certiorarified Mandamus to quash the order passed by the first respondent, dated 18.03.2010 and consequently to for bear the first respondent from computing or disbursing any dues including retrenchment compensation, gratuity and other statutory benefits for the period subsequent to 31.12.2004.
3. Though this case has a chequered history, the short issue which falls for consideration is :- "what would be the date, which shall be reckoned for the purpose of computing the compensation payable under Section 25FF of the Industrial Disputes Act, 1947 to the workmen of the appellant Sugar Mill".
4. The facts, which are necessary for the disposal of the writ appeal, could be precisely stated as hereunder: - The appellant availed certain credit facilities from the Indian Bank and committed default in repayment, and the Bank initiated proceedings under the SARFAESI Act 2002, and notice under Section 13(2) of the Act was issued on 25.09.2004; possession notice under Section 13(4) was issued on 01.01.2005 and the notice of tender for sale of secured assets, both movable and immovable, was issued on 18.03.2005 and the auction was held on 24.03.2005, and M/s.EID Parry India Ltd was the successful bidder and they remitted a sum of Rs.12.50 crores on the same date towards part payment of the bid amount. The problem arose thereafter as several writ petitions came to be filed by the PNL Depositor Welfare Association, the Employees Association, Indian Bank, Pondicherry Cooperative Bank, Bank of Baroda and Greeta Enterprises & Developers (P) Ltd who filed W.P.Nos.9834, 10060, 10077, 11715, 13592 and 15303 of 2005 respectively. These writ petitions were disposed of by a common order, dated 12.07.2005 with an observation that the workmen will be entitled to the benefits available under Section 25FF of the Industrial Disputes Act as against the third and fourth respondents therein by virtue of the prescription made under Section 13(6) of the SARFAESI Act therein. The third and fourth respondents were the successful bidders in the auction sale.
5. After the disposal of the writ petitions, sale certificate in respect of movable assets was issued in favour of the purchaser on 10.08.2005, but the sale certificate in respect of the immovable assets could not be registered owing to order of attachment under the provisions of the Pondicherry Protection of Interests of Depositors in Financial Establishments Act, 2004. At that stage of the matter, three writ petitions were filed in W.P.Nos.24834, 30532 & 36900 of 2005 by the Puduvai Pradesa Sarkarai Aalai Thozhilalar Sangam, Indian Bank and Ariyur Sugar Mills Staff Welfare Union respectively. This Court by an interim order dated 07.12.2005 appointed Justice K.P.Sivasubramaniam (retired) for computing the dues payable to the workmen and to submit a report. Simultaneously, Indian Bank was directed to deposit an initial amount of Rs.6.00 crores in a no-lien account for the purpose of disbursement to the workmen, after computation and this direction to deposit was complied with by the Indian Bank. While so, the writ petitions, which were filed challenging Protection of Interest of Depositors Act, came to be disposed of by order dated 23.08.2006, upholding the validity of the Act and consequently, the attachment on the immovable assets of the appellant was lifted and a sale certificate in respect of the immovable assets was executed and registered on 24.08.2006.
6. As against the common order in W.P.No.9834 of 2005 etc and against the interim order granted in W.P.No.24834 of 2005 etc., and against the order in W.P.No.1897 of 2006 etc batch, writ appeals in W.A.Nos.1788 & 1919 of 2005, 1142 to 1144, 1209, 1342 to 1345 of 2006 and 293 of 2007 were filed. These writ appeals along with the connec
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