Union of India Vs. Scott and Saxby Ltd. Shramik Union and Association and ors. - Court Judgment

SooperKanoon Citationsooperkanoon.com/1100276
CourtKolkata High Court
Decided OnDec-09-2013
JudgeSUBHRO KAMAL MUKHERJEE
AppellantUnion of India
RespondentScott and Saxby Ltd. Shramik Union and Association and ors.
Excerpt:
order sheet apo no.224 of 2013 with cp no.351 of 2006 in the high court at calcutta civil appellate jurisdiction original side union of india versus scott & saxby ltd.shramik union & association & ors.before: the hon'ble justice subhro kamal mukherjee and the hon'ble justice sahidullah munshi date : december 9, 2013. mr.somenath bose, mr.bhaskar prosad banerjee. … for the appellant. ms.ruma sikdar. …for the official liquidator the court : this is an appeal against the judgment and order dated april 5, 2013 passed by the hon’ble company judge, inter alia, directing the central government to indicate as to how the central government propose to discharge the dues of the erstwhile employees of the company (in liquidation).that is, scott & saxby ltd.scott & saxby ltd.is a company within bird group of companies. group of companies was nationalised. bird the central cabinet had taken a decision, inter alia, to absorb the employees of the company (in liquidation) in orissa mineral development corporation (o.m.d.c.)/bisr.stone lime company limited (b.s.l.c.) or to offer voluntary retirement scheme. it was, further, decided to seek permission from the ministry of labour and employment to wind up the company (in liquidation) under section 25 (o) of the industrial disputes act, 1947. when the company went to liquidation, the shramik union approached the hon’ble company judge. they placed a chart, showing the particulars of sixtynine employees. some of them were absorbed in o.m.d.c., but were not paid till their absorption. there are thirteen employees, who had retired, but their dues were not paid. seven persons died, but their dues had not been paid to their heirs.in such circumstances, the hon’ble company judge thought that the obligation was on the central government to ensure their unpaid dues and as such, central government was directed to indicate as to how the central government decided to pay their dues. being aggrieved by and dissatisfied with such order, the union of india has come up with this appeal. mr.bose, learned advocate appearing in support of the appeal, indicates that it is not the liability of the central government to pay the dues of the erstwhile employees of the company (in liquidation).we have perused a communication dated september 30, 2009, by the ministry of steel, government of india, addressed to the managing director of the bird group of companies, inter alia, indicating that the cabinet had decided to absorb some of the employees of the company in liquidation or, alternatively, to offer voluntary retirement scheme to them. there was a, further, decision of the central government to seek permission from the ministry of labour and employment to wind up the company (in liquidation) under section 25(o) of the industrial disputes act, 1947. in such view of the matter, it is difficult for us to hold that the hon’ble company judge erred in law and in the facts of the case in directing the central government to indicate as to how the central government wanted to discharge their liability. we do not find any merit in the appeal however, we clarify that since the matter is pending before the hon’ble company judge, before any order for making payment is made, the hon’ble company judge will finally decide whether the central government was at all liable to pay the dues of the employees of the company (in liquidation).with the aforesaid direction, we dismiss the appeal. we make no order as to costs. (subhro kamal mukherjee, j.) (sahidullah munshi, j.) akb/
Judgment:

ORDER

SHEET APO No.224 of 2013 WITH CP No.351 of 2006 IN THE HIGH COURT AT CALCUTTA Civil Appellate Jurisdiction ORIGINAL SIDE UNION OF INDIA Versus SCOTT & SAXBY LTD.SHRAMIK UNION & ASSOCIATION & ORS.BEFORE: The Hon'ble JUSTICE SUBHRO KAMAL MUKHERJEE And The Hon'ble JUSTICE SAHIDULLAH MUNSHI Date : December 9, 2013.

Mr.Somenath Bose, Mr.Bhaskar Prosad Banerjee.

… for the appellant.

Ms.Ruma Sikdar.

…for the Official Liquidator The Court : This is an appeal against the judgment and order dated April 5, 2013 passed by the Hon’ble Company Judge, inter alia, directing the Central Government to indicate as to how the Central Government propose to discharge the dues of the erstwhile employees of the company (in liquidation).that is, Scott & Saxby LTD.Scott & Saxby LTD.is a company within Bird Group of Companies.

Group of Companies was nationalised.

Bird The Central Cabinet had taken a decision, inter alia, to absorb the employees of the company (in liquidation) in Orissa Mineral Development Corporation (O.M.D.C.)/BiSr.Stone Lime Company Limited (B.S.L.C.) or to offer voluntary retirement scheme.

It was, further, decided to seek permission from the Ministry of Labour and Employment to wind up the company (in liquidation) under Section 25 (O) of the Industrial Disputes Act, 1947.

When the company went to liquidation, the Shramik Union approached the Hon’ble Company Judge.

They placed a chart, showing the particulars of sixtynine employees.

Some of them were absorbed in O.M.D.C., but were not paid till their absorption.

There are thirteen employees, who had retired, but their dues were not paid.

Seven persons died, but their dues had not been paid to their heiRs.In such circumstances, the Hon’ble Company Judge thought that the obligation was on the Central Government to ensure their unpaid dues and as such, Central Government was directed to indicate as to how the Central Government decided to pay their dues.

Being aggrieved by and dissatisfied with such order, the Union of India has come up with this appeal.

Mr.Bose, learned advocate appearing in support of the appeal, indicates that it is not the liability of the Central Government to pay the dues of the erstwhile employees of the company (in liquidation).We have perused a communication dated September 30, 2009, by the Ministry of Steel, Government of India, addressed to the Managing Director of the Bird Group of Companies, inter alia, indicating that the Cabinet had decided to absorb some of the employees of the company in liquidation or, alternatively, to offer voluntary retirement scheme to them.

There was a, further, decision of the Central Government to seek permission from the Ministry of Labour and Employment to wind up the company (in liquidation) under Section 25(O) of the Industrial Disputes Act, 1947.

In such view of the matter, it is difficult for us to hold that the Hon’ble Company Judge erred in law and in the facts of the case in directing the Central Government to indicate as to how the Central Government wanted to discharge their liability.

We do not find any merit in the appeal However, we clarify that since the matter is pending before the Hon’ble Company Judge, before any order for making payment is made, the Hon’ble Company Judge will finally decide whether the Central Government was at all liable to pay the dues of the employees of the company (in liquidation).With the aforesaid direction, we dismiss the appeal.

We make no order as to costs.

(SUBHRO KAMAL MUKHERJEE, J.) (SAHIDULLAH MUNSHI, J.) akb/