Aditya Translink Private Ltd. v. Kamal Singh Dugar
1998-01-07
ALTAMAS KABIR, UMESH C.BANERJEE
body1998
DigiLaw.ai
JUDGMENT : - This appeal arises out of Impugned order dated 18th April, 1996 passed by the learned trial Judge in Suit No. 287 of 1995, (1) Kamal Singh Dugar v. The Samnuggur Jute Factory Co. Ltd. wherein the learned trial Judge was pleased to hold and observe that on the materials on record it was not possible at the interlocutory stage to pass any order of the Interlocutory application filed by the plaintiff. The learned trial Judge, however, for the protection and preservation of the assets of the Company gave certain directions against Aditya Translink Pvt. Ltd. against which this appeal has been preferred. 2. It has been submitted on behalf of the Company that with the financial assistance of the Aditya Trans link Pvt. Ltd the Company has been not only paying all its current liabilities and dues but has also paid a sum of Rs. 4.80 Crores (approximately) towards its arrear liabilities which Includes payments of arrear Provident Fund dues of Rs.26,09,286/-, arrear E.S.I. dues of Rs. 11,25,000/- and arrear Sales Tax dues of Rs. 19.62,286 8op. for the period prior to 12th August, 1995. The Company has also made payment out of funds provided by Aditya Translink Pvt. Ltd. a sum of Rs 9,06.10,271/- towards the current Provident Fund dues for the period subsequent to 12th August, 1995. A sum of Rs. 1.89,75,822/- has already been paid towards the current E.S.I dues and a sum of Rs 1.68,84.121. 78 p. towards current Sales Tax dues. 3. By the Impugned order dated 18th April, 1996 the Provident Fund Authorities had been directed by the Trial Court to realize the Provident Fund dues from the management of the Samnuggur Jute Factory Co. Ltd. within 3 months from the date of the said order but no steps have been taken by the Provident Fund Authorities in that regard in terms of the said order excepting as below. 4. On 23rd September 1997 when the matter came up for hearing, this Court by its order dated 23rd September. 1997 directed the Registrar, Original Side of this Court to send a communication to the E.S.I. Authorities and Provident Fund Commissioner so that both the authorities may file a report before this Court on the next date of hearing as to the extent of the liability of the Company as on date with all bleak ups. 5.
1997 directed the Registrar, Original Side of this Court to send a communication to the E.S.I. Authorities and Provident Fund Commissioner so that both the authorities may file a report before this Court on the next date of hearing as to the extent of the liability of the Company as on date with all bleak ups. 5. The contextual facts depict that after having Intimation and communication of the said order, the Provident Fund Authorities passed an order on 6th November, 1997 for attachment of the Bank Account of M/s. Aditya translink Pvt. Ltd. who are the financier of the Company. As against, however, the said order of attachment passed on 6th November. 1997 by the Provident Fund Authorities attaching the Bank Account of Aditya Translink Pvt. Ltd. who are more financier and are not legally liable to pay the dues of the Company. M/s. Aditya translink Pvt. Ltd. had filed an application to this Court. This Court on 11th November, 1997 directed Aditya Translink Pvt. Ltd. to serve a copy of the petition on Regional Provident Fund Commissioner and passed an order of status quo and on 12th November, 1997 after hearing Mr. Mishra, the, learned Advocate appearing for Regional Provident Fund Commissioner, this Court passed on order staying the said order of attachment passed by the Regional Provident Fund Commissioner. Mr. Mishra appearing for the Regional Provident Fund Commissioner had submitted that Certificate proceedings have been Initiated against the Company in 1983 and the same is still continuing It appears that no attempt has been made by the Provident fund Authorities to realize their dues after initiation of the Certificate proceedings in 1983. On the contrary, the order of attachment of the Head Office of the Company passed on 2nd August, 1995 was withdrawn by the Provident Fund Authorities on 19th December, 1997 during the pendency or this application. Considering the interest of 5000 employees working in the Samnuggur Jute Factor, Company Ltd. (North Mill), this Court passed the order on 12th November. 1997. When the matter appeared on 16th December. 1997, Mr. Mishra appearing for Regional Provident Fund Commissioner informed this Court that his client is desirous of moving an application before the Hon'ble Supreme Court of India and accordingly the matter was adjourned till the reopening date after Christmas Holidays for further consideration. Mr.
1997. When the matter appeared on 16th December. 1997, Mr. Mishra appearing for Regional Provident Fund Commissioner informed this Court that his client is desirous of moving an application before the Hon'ble Supreme Court of India and accordingly the matter was adjourned till the reopening date after Christmas Holidays for further consideration. Mr. Mishra, however, informed this Court today that his client has sent papers to Delhi and no Special Leave Petition has been filed till date and he has no further Information on the subject. 6. It appears that Aditya Translink Pvt. Ltd. has paid on behalf of Samnuggur Jute Factory Co. Ltd. (North Mill) a sum of Rs. 50,000/per month toward arrear Provident Fund dues since August 1995 till November 1997. Further pursuant to the order passed by this Court on 16th December. 1997, the Company has started paying a sum of Rs. 1,00.000/- per month towards arrear Provident Fund dues. 7. The records depict that the Company bas furnished with the Regional Provident Fund Commissioner on 8th December, 1997 a revolving Bank Guarantee of Rs. 12,00,000/- to guarantee the payment of monthly Installment of Rs 1.00 000/- per month commencing from 1st December, 1997. A cheque of Rs.10,00,000/- as ad hoc payment towards arrear Provident Fund dues as per the direction of the Regional Provident Fund Commissioner had been given to be Regional Provident Fund Commissioner by the Company on 24th December, 1997 and the same has been forwarded by the Provident Fund Authorities to the Board of Trustees of the Samnuggur North Mill Workers Provident Fund to deposit the same in its accounts. Thus, a total Bum of Rs.26,09,286/- have been paid towards arrear Provident Fund dues relating to the period prior to 12th August, 1985. It appears that the Provident Fund Authorities have accepted the aforesaid payment and also the Bank Guarantee without any objection and forwarded the same to the Trustees in terms of the letter dated 24th December. 1997. 8. The Impugned order of the ,trial Court was passed on 18th April, 1996 wherein it was observed that the object of the Impugned order was to freeze accrual of any further actual loss of the defendant Company until the decision of the Supreme Court. The Hon'ble Supreme Court Subsequent to passing of the said Impugned order passed an order on 9th October.
The Hon'ble Supreme Court Subsequent to passing of the said Impugned order passed an order on 9th October. 1996 directing the payment of a sum of Rs 1,00,000/- per month for payment to the creditors of the Company and further directed that the Company will continue to make payment to the workers as was being paid at that time. It was submitted on behalf or the Company that the payment in terms of the said order is being regularly made. In view of the aforesaid order of the Hon’ble Supreme Court, the Impugned order dated 18th April, 1996 passed by the learned trial Court bas lost its force. 9. Considering the employment of more than 5000 workers directly employed la the jute mill of Samnuggur Jute Factory Co. Ltd. (North Mill) and to ensure regular and sufficient payment towards arrear liability of the Company and to stop social catastrophe and deprivation of the workers livelihood and to freeze accrual of further loss to the Company the appeal and the pending application stand disposed of In the manner following :- Mr. Partha Sarathi Basu, Advocate and Mr. Soumen Sen, Advocate are appointed as Joint Special Officers in respect of the entire assets, plants, machinery and equipments of Samnuggur North Mill. The Special Officers will allow Messrs Aditya Translink Pvt. Ltd. of 9. India Exchange Place, Calcutta 700001 to run the Samnuggur North Mill under the supervision of the said Special Officers appointed herein, who shall act jointly and severally. The Special Officers, however, will not in anyway interfere with the day to day management and affairs of the jute mill and the business of Aditya Translink Pvt. Ltd. Mr. Partha Sarathi Basu will be entitled to a remuneration of 200 GMs. per month and Mr. Soumen Sen will be entitled to a remuneration of 150 GMs. per month to be paid by Aditya Translink Pvt. Ltd at the first instance. 10. the existing arrangement of the Company with Messrs Aditya translink Pvt. Ltd. to run the said jute mill of the Samnuggur Jute Factory Co. Ltd (North Mill) is modified to the extent that henceforth Messrs Aditya Translink Pvt. Ltd. shall have authority to use and utilse all assets, facilities and infrastructures of the Samnuggur Jute Factory Co.
10. the existing arrangement of the Company with Messrs Aditya translink Pvt. Ltd. to run the said jute mill of the Samnuggur Jute Factory Co. Ltd (North Mill) is modified to the extent that henceforth Messrs Aditya Translink Pvt. Ltd. shall have authority to use and utilse all assets, facilities and infrastructures of the Samnuggur Jute Factory Co. Ltd. (North Mill) pertaining to the North Mill under the supervision of the Special Officers subject to M/s. Aditya translink Pvt. Ltd. paying a sum of Rs. 12,00,000/- per month for utilisation of the entire assets, infrastructures, plant, machinery and equipments of the Samnuggur Jute Factory Company Ltd (North Mill) to the Special Officers to meet the arrear liabilities of the Company accrued prior to passing of this order. 11. The aforesaid amount of Rs. 12,00,000/- per month to be paid by Messrs Aditya Translink Pvt. Ltd. shall be disbursed by and for under the supervision of the Special Officers as under :- (i) A sum of Rs. 1.00,000/- per month to be paid to the Special Office appointed by this Court In C.P. No. 434 of 1988 in terms of the order dated 9th October, 1996 passed by the Hon’ble Supreme Court of India in Special Leave Petition, being Civil Appeal No. 1733 of 1993, for disbursement amongst various creditors of the Company numbering 55, who were the respondents before the Hon'ble Supreme Court of India. The concerned Special Officer will maintain a separate account In respect of such receipts and disbursements. It is clarified that the Special Officer shall continue to remain and would continue to discharge his duties as earlier. (ii) A sum of Rs 6,00.000/- per month shall be paid towards arrear dues of workers till the passing of this order until the same are fully paid up. Such payment shall be made by Messrs Aditya Translink Pvt. Ltd. to the workers directly and M/s. Aditya Translink Pvt. Ltd. shall submit regularly accounts such of payment to the Special Officers to comply with the obligations of the Company, as per the direction of the Hon'ble Supreme Court dated 9th October, 1996. (iii) the Special Officers shall disburse the balance sum of Rs.5,00,000/- on the following heads on account of arrear dues of Samnuggur Jute Factory.
(iii) the Special Officers shall disburse the balance sum of Rs.5,00,000/- on the following heads on account of arrear dues of Samnuggur Jute Factory. Company Ltd. (North Mill) for the period prior to 12th August, 1995 and shall hold the balance sum, in short term fixed deposit with any nationalized bank until further orders of this Court :- (a) A sum of Rs 1,00,000/- per month towards arrear Provident Fund dues In terms of the order dated 16tb December, 1997 passed by this Hon 'ble Court. (b) A sum of Rs. 50,000/- per month towards arrear E.S.I. dues stead of Re. 25.000/- being paid per month. (c) A sum of Rs. 1,00,000/- per mouth towards arrear Sale a Tax and Raw Jute Tax, etc. (d) A sum of Rs. 73,400/. per mouth, being monthly Installment of the principal due to the sundry creditors, who had filed winding up applications and their claims have been settled by the Company to pay the Principal amount in 66 monthly Installments. 12. The said monthly sum of Rs 12,00,000/- per month shall be treated as payment against use and utilization of the entire assets, facilities. Infrastructure, plant, machinery and equipments pertaining to the North Mill of Samnuggur Jute Factory Co. Ltd. by Messrs Aditya Translink Pvt. Ltd. who shall be at liberty to carryon Its business in its own name. 13. So long, all the aforesaid payments are made regularly, Messrs Aditya Translink Pvt. Ltd. will continue to run the Samnuggur Jute Factory Co. Ltd (North Mill) without any Interference on any party Including the Company. 14. It is directed that henceforth all current salaries wages and other current dues of the workers and the current statutory dues of the Samnuggur Jute Factory Co. Ltd. pertaining to North Mill shall be paid regularly by Messrs Aditya Translink Pvt. Ltd. and Messrs Aditya Translink Pvt. Ltd. shall furnish a comprehensive statement of account showing such payments to the Special Officers with a copy to the Advocate of the Company giving full particulars of such current pa) meat to the workers and statutory dues. 15. Messrs Aditya Translink Pvt. Ltd. shall go on filing a quarterly statement of all such payments to be made to the worker towards their salaries and other dues and the statutory dues with the Special Officer and endorse a copy thereof to the Advocate for the Company. 16.
15. Messrs Aditya Translink Pvt. Ltd. shall go on filing a quarterly statement of all such payments to be made to the worker towards their salaries and other dues and the statutory dues with the Special Officer and endorse a copy thereof to the Advocate for the Company. 16. A statement of the payments and collections made by Aditya Translink Private Limited for the period August 12, 1995 till the passing of this order will be handed over to the Special Officers with a copy to the Advocate for the company and the same shall not be payable by the Company to Aditya Translink Private Limited and vice versa. 17. In default, the Special Officers and the Company will be at liberty, to mention for appropriate directions of this Court. 18. Mr. Sudipto Sarkar, Advocate appearing for the Samnuggur Jute Factory Co. Ltd. submitted that this order is reasonable In the facts of this case at this stage and gave his concurrence on behalf of the Company since this order would help the Company to liquidate its arrear liabilities to the extent of Rs. 1.44 Crores per year without incurring any further loss. 19. Mr. Shibdas as Banerjee, Advocate appearing for the workers of the Samnuggur Jute Factory Company Ltd. (North Mill) also supported this order as this order would ensure for the benefit of the workers and submitted, that this order would be in the interest of all concerned including the workers who will continue to get their livelihood apart from their arrear payment. 20. Be it noted that this order is passed specially keeping in view the paramount interest of about 5000 workers and the question of their livelihood being involved. 21. It is submitted on behalf of Messrs Aditya Translink Pvt. Ltd. that out of the amount lying In the Bank of M/s. Aditya Translink Pvt. Ltd. at the time of attachment by the Provident Fund Authorities, a sum of Rs. 52,00,051/- has been paid towards current Provident Fund dues of Samnuggur Jute Factory Company Ltd. (North Mill) The order of stay passed by this Court on 12th November. 1997 staying the attachment of Bank Account or Aditya Translink Pvt. Ltd. shall continue and the same is confirmed. 22. Be it placed on record that Masers Aditya Translink Private Ltd. has made payment of the current Provident Fund dues amounting approximately to Ra.
1997 staying the attachment of Bank Account or Aditya Translink Pvt. Ltd. shall continue and the same is confirmed. 22. Be it placed on record that Masers Aditya Translink Private Ltd. has made payment of the current Provident Fund dues amounting approximately to Ra. 9.00.00 000/- and there is no grievance of the Regional Provident Fund Commissioner as regards the current payment, as is evident from the affidavit filed by one Nripen Kumar Mitra being the Enforcement Office in the Officer of the Regional Provident Fund Commissioner. So far as arrears are concerned, an affidavit bat been filed before this Court recording therein the total dues of the Regional Provident Fund Commissioner to the extent of Rs 1022.41 lakhs for the period from January 1983 to August 1995 with the following particulars:- I) Employees share of Provident Fund dues. Rs. 173.70 lakhs ii) Employers share of Provident Fund dues. Rs. 6 ~S.62 lakbs iii) Refund of withdrawal Rs. 223.51 lakhs iv) Inspection charges Rs. 24 lakhs v) Deposit link Insurance dues and administrative charges Rs. 9.34 lakhs Total - Rs. 1022.41 lakhs 23. Mr. Sarkar appearing for the Company, however, disputes such statement of claim and, in particular the claim In regard to third and fourth Items viz. refund of withdrawal as also Inspection charges. 24. Be it noted that Mr. Basu’s client personally is making payment of around Rs. 6 00,000/- of account of the arrear wages of the employees. Mr. Basu submitted that it would take about two years more to pay up all the arrear dues of the workers and Immediately Upon fulfillment of the commitment as regards the wages are concerned, the entire money which would be paid as and by way of arrear wages, would be-diverted to Provident Fund dues and statutory dues. 25. Let it be placed on record that we are not adjudicating as regards the claim of the Provident Fund and the Company would be at liberty, to take appropriate steps, if they are otherwise advised. 26. In the contextual facts, as noted above, we do find some justification in the grievance of Mr. Mukherjee's client and, In any event, by reason of the final disposal of the matter by the Supreme Court, question of continuation with the order as passed b, the learned trial Judge does not and cannot arise.
26. In the contextual facts, as noted above, we do find some justification in the grievance of Mr. Mukherjee's client and, In any event, by reason of the final disposal of the matter by the Supreme Court, question of continuation with the order as passed b, the learned trial Judge does not and cannot arise. The order of the learned trial Judge, therefore, stands set aside and the relationship between the parties shall be governed In terms of the order as noted above. 27. Let it be recorded that none of the parties used any affidavit in the matter and they do not admit the allegations made in the petition. Regional Provident fund Authorities also did not use any affidavit and Mr. Mishra appearing on behalf of the Regional Provident fund Commissioner also does not admit any of the allegations made in the petition. 28. This disposes of both the appeal and the application. The undertakings given by the appellant stand discharged. Each party shall bear its own cost. Liberty to apply before this Court as and when occasion so arises. 29 This order disposing of the appeal is being passed having due regard to the factum of appointment of the two Special Officers by this Court and in view of the fact that no useful purpose would be sub-served in keeping the appeal pending by reason of the order, as noted above. But in cue of certain exigencies and in the event the Special Officers also do feel it expedient, they are at liberty to approach this Court for further orders in the matter. All parties are to act on a signed copy of this Dictated Order on the usual undertaking.