[2023:RJ-JD:21950]

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT

JODHPUR

S.B. Company Application No. 12/2023

Sri Kailash Goshi S/o Late Shri Banshi Lal Ghosi, Aged About 45

Years, Resident Of Bsl Mil Ke Pass, Pratap Ki Chakki Ke Piche,

Bhilwara 311001.

----Applicant

Versus

The Offical Liquidator M/s Mewar Texttile Mills Limited, Bhilwara.

----Respondent

For Applicant(s)

:

Mr. Jai Kishan Rankawat

For Respondent(s)

:

Mr. D.K. Meena, Official Liquidator

HON'BLE DR. JUSTICE PUSHPENDRA SINGH BHATI

Order

17/07/2023

1.

Learned counsel for the applicant as well as the Official

Liquidator jointly submit that the issue in question is no more res-

integra, as the similar controversy has already been decided by

this Court in the matter of Mtm Employees Staff Consumer

Cooperative Society Limited Vs. The Official Liquidator,

Mewar Textile Mills Limited, Bhilwar & Anr. (S.B. Company

Application No.3/2018) decided on 04.04.2019. The order

dated 04.04.2019 reads as under :-

"1.These applications have been filed by the

applicant society representing the workmen under Rules

9 & 163 of the Companies (Court) Rules, 1959 with the

prayer that the claim of the workmen has been settled

subsequent to the winding up and in accordance with

law, the workmen need to be given interest on the

[2023:RJ-JD:21950]

(2 of 4)

[COAP-12/2023]

delayed payment of their dues from the date of winding

up till the date of actual payment.

2.The Official Liquidator present in person submits

that Rule 179 of the Companies (Court) Rules, 1959 is

applicable and the interest at the rate of 4% per annum

is payable.

3.Learned counsel for the applicant has relied upon

the judgment rendered by High Court of Madras in the

case of A.Shanmugham vs. Official Liquidator, High

Court, Madrasand Ors. reported in (1992) 75 Comp. Case

181 (Madras),relevant portion whereof reads as

follows :-

“30.By Amendment Act No. 35 of 1985,

Parliament had brought about very important and

significant changes in the provisions of the Companies

Act. By virtue ofsections529,529Aand530, conferring

substantial rights and benefits on the workmen of the

closed undertaking, the workmen get rights pari passu

with those of the secured creditors over the assets of

the company in liquidation. Rule179 of the Companies

(Court) Rules, 1959, applies to unsecured creditors in

the matter of payment of interest from the date of the

winding up order till the date of dividend. The said rule

cannot be applied to workers who, under the amended

provisions of the Act, are treated on par with secured

creditors.

By

virtue

of

the

provisions

ofsections529and529A, the workmen of the company

have to be treated on par with secured creditors. The

status of secured creditors is conferred on the

workmen by operation of law.

31.In State of Kerala v. M. Padmanabhan Nair, the

Supreme Court has held as follows while granting

interest at15 per cent. per annum (headnote) :

"Pension and gratuity are no longer any bounty to

be distributed by the Government to its employees on

their retirement but are valuable right and property in

their hands and any culpable delay in settlement and

disbursement thereof must be visited with the penalty

of payment of interest at the current market rate till

actual payment. The liability to pay penal interest on

these dues at the current market rate commences at

the expiry of two months from the date of retirement.

[2023:RJ-JD:21950]

(3 of 4)

[COAP-12/2023]

The above case is a glaring instance of culpable

delay in the settlement of pension and gratuity claims

due to the respondent/worker who retired in the year

1973. His pension and gratuity were ultimately paid to

him on August 14, 1975,i.e., more that two years and

three months after his retirement and hence, after

serving a lawyer's notice, he filed a suit mainly to

recover interest by way of liquidated damages for

delayed payment. The State