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Plywood Karmchari Sangathan v. Union Of India Ministry Of Finance & Ors. - COMPANY APPLICATION No. 2 of 2004 [2007] RD-AH 2874 (21 February 2007)


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In Chamber


In the matter of

M/s Sitapur Plywood Manufacturing Company Ltd (in liquidation)

Order on

(Civil Misc. Recalling Application No. 19931 of 2007 filed on behalf                        of Plywood Karamchari Sangathan)

Hon'ble Sunil Ambwani, J.

Heard Shri Manish Goyal, learned counsel for applicant for workmen.

The workmen appeared in the matter through Shri Manish Goyal on 30.1.2004. Thereafter they participated in the proceedings and were given time to file reply to the pending applications. The orders dated 15.7.2004, 12.8.2004, and 9.8.2005 establish that Shri Manish Goyal, Advocate was participating in the proceedings and that his name was shown in the cause list.

In the liquidation proceedings after detailed inquiries and giving several  opportunities to the M/s Sitapur Plywood  Products- a partnership firm, banks, financial institutions, LIC etc it was found that the plant and machinery did not belong to the company (in liquidation). M/s Plywood Products partnership firm had leased the plant and machinery to the company (in liquidation) and had also executed mortgage deed in favour of bank. The applications made by all the parties including other lessees were considered in the circumstances that the Official Liquidator had only Rs. 7.4 lacs in liquidation account which he had released after sale of the scrap confirmed on 7.8.2002. On 2.5.2006 with the consent of the partnership firm-company, banks, financial institution and LIC, pending applications were disposed of and on 19.7.2006 the company was dissolved with the directions that the entire  amount  available with the Official Liquidator in the liquidation fund will be reserved for payment to the workmen towards their gratuity and the remaining amount will be returned.

At this stage when the company was dissolved by the court on 19.7.2006, fresh application has been filed by Shri Manish Goyal on behalf  Plywood Karamchari Sansthan Sitapur stating therein that workmen had no knowledge about the order by which their applications were disposed and the company was resolved. They came to know about the order from the District Magistrate where  they resorted to 'dharna' and it is only after the District Magistrate informed them about the  order of the High Court, they came to Allahabad and made enquiries about the orders.

The detailed enquiry revealed that the company (in liquidation) had no further assets. All the fixed assets belonged to the lessors including the partnership firm. The ex-directors of the company with the  partnership firm, entered into the OTS with Bank with which all the assets were mortgaged. With the agreement between the parties, the assets were directed to be handed over to the banks to realise their dues and the remaining to be returned back to the partnership firm. All the arrangements were finalised between the parties who were present before the Court. There was nothing available except Rs. 7.4 lacs in the liquidation account of the company. This amount has been reserved for the workmen to make their claims. In the facts and circumstances, I do not find that the workmen had made out any case. In any case the workmen cannot plead that they were in the proceeding upto a stage, and would like to re-enter the proceedings after the company was dissolved. The application is rejected.

Dt. 21.2.2007



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