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2014 DIGILAW 692 (KAR)

S. H. Vanahalli v. official liquidator

2014-07-31

A.S.BOPANNA

body2014
Judgment : ORDER IN C.A.NO.889/2014 1. This application is filed seeking condonation of delay of 1483 days in filing C.A.No.888/2014-. 2. Though there, is inordinate delay, considering the fact that the applicant is a former employee of the Company in liquidation and is presently seeking financial benefits for the period he had rendered services in the Company in liquidation, the delay is necessarily to be condoned. Hence, delay is condoned and the application is allowed. ORDER IN C.A.No.888/2014 3. This application is filed by the applicant claiming to be aggrieved by the rejection of portion of the amount claimed. The Official Liquidator while adjudicating the claims had admitted the portion of the amount and has rejected to the extent as indicated in the order. The contention in the instant Application is that the Official Liquidator was not justified in not considering the closure compensation and the payment of Gratuity. The said issue has already been considered by this Court in C.A.Nos.1382 and 1433 of 2012 disposed of on 21.03.2013. With regard to the gratuity amount, it has been held that the claim is to be preferred before the Gratuity Trust and as such, the reason assigned by the Official Liquidator is justified. 4. The issue is however with regard to closure compensation. Though the Official Liquidator has held that the applicant would be entitled to the closure compensation, there appears to be certain mis-conception with regard to the manner of calculation and the head under which it is to be paid. The observation that it is arrears of wages would not be appropriate. The method of calculation of the compensation has been considered in the above noticed applications which were disposed of by this Court. 5. Hence, on that aspect, the Official Liquidator would have to take note of the length of service rendered by the applicant and based on the same, the compensation calculated at 15 days wages for every completed year of service will have to be reckoned. Therefore, the Official Liquidator would have to re-consider that aspect of the matter. In all other respects, the order of the Official Liquidator is justified. To enable re-consideration, the order dated 24.04.2011 impugned herein is set aside to the extent indicated above. The Official Liquidator shall re-consider the matter in terms of the above observation. Accordingly, the applications are disposed of.