THE MAHARASHTRA STATE CO-OPERATIVE BANK LTD. versus BABULAL LADE & ORS. on 24 March 2023

1. By Miscellaneous Application No. 1308 of 2020 in Civil AppealNo. 232 of 2016, the original appellant – applicant – The MaharashtraState Co-operative Bank Ltd. has prayed to transfer the amount ofRs. 3.52 crores deposited by the appellant – bank with this Hon’bleDCourt in the account of Collector, Bhandara alongwith interest. It is furtherprayed to direct the Collector, Bhandara to distribute the amount as perthe entitlement of each and every employee of the sugar factory afterproper identification proportionately.

1.1 One another I.A./M.A. is preferred by the bank permittingthe bank to withdraw the excess amount so deposited by the appellant -Ebank with accrued interest till date, i.e., Rs. 4,95,94,737/-. In M.A. DiaryNo. 1755 of 2021, the bank has prayed to direct the employees of therespondent-sugar factory, whose legal dues are pending, to submit therelevant documents in support of dues and their claims so as to provetheir legal dues and to furnish such a detail including the necessary detailsFof their bank accounts for remitting their legal dues and furnishing theirparticulars alongwith a tabulation of total dues from the sugar factory tilldate in view of the order passed by this Hon’ble Court dated 04.12.2019passed in Civil Appeal No. 232 of 2016.

2. At the outset, it is required to be noted that by a detailed judgmentGand order dated 04.12.2019 in Civil Appeal No. 232 of 2016, this Courthas upheld the right of the employees of the sugar factory to receive theamount from the appellant - bank and has held that the applicant/appellantbank must pay the employees’ dues out of the sale proceeds from theauctioned property. However, it is required to be noted that so far as theliability of the appellant - bank would be to pay only the employees duesH

of salary/wages and so far as all other statutory dues in relation toemployees namely provident fund, gratuity, bonus etc. are concerned,the liability has been fastened upon the subsequent purchaser. It appearsthat during the pendency of the aforesaid appeal and while passing theinterim order, this Court directed the applicant/appellant bank to deposit25% of the total amount of wages and pursuant to the same, the applicant/appellant bank deposited the amount of Rs. 3.52 crores with this Courtand the same has been invested in the fixed deposit. It is reported thatalongwith interest, the amount comes to Rs. 4,95,94,737/-. It has comeon record that earlier pursuant to the order passed by the IndustrialCourt, Bhandara, the appellant bank had deposited a sum ofRs. 13,89,84,334/- by demand draft dated 11.02.2021 in favour of“Member, Industrial Court, Bhandara”.

3. Thus, the amount due and payable towards the wages/salariesof the concerned employees of the sugar factory in liquidation shall haveto be paid to them and/or to their legal heirs (in case the original employeehas died) out of the aforesaid amount (Rs. 13,89,84,334/- +Rs. 4,95,94,737/-), which shall have to be paid on the due verificationand identity as per the certificate issued by the Collector, as on 23.08.2011,whereas a total sum of Rs. 13,89,84,334/- is due and payable to theemployees, which amount includes the amount due and payable towardsthe statutory dues namely the provident fund, gratuity, bonus etc. However,at the same time, it is required to be seen that the amount goes to theright person, who is entitled to receive the amount due and payable tohim and for that purpose there shall be full particulars including the bankaccount particulars of the concerned employees.

4. Having heard learned counsel appearing on behalf of therespective parties and taking into consideration the earlier order passedby this Court in Civil Appeal No. 232/2016, the present applications aredisposed of with the following directions: -

(i) The amount of Rs. 3.52 crores deposited by the appellant –bank, deposited with this Court pursuant to the earlier order passedby this Court with the interest accrued thereon be transferred inthe account of the Collector, Bhandara so as to enable the Collector,Bhandara to distribute the same to the concerned employees/legalheirs of the employes of the sugar factory in liquidation;

(ii) The amount of Rs. 13,89,84,3374/- lying with the IndustrialCourt, Bhandara along with the interest accrued thereon also be AB

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Atransferred to the Collector, Bhandara in the account of Collector,Bhandara;

(iii) The Collector, Bhandara is hereby directed to pay/disburserespective employees’ dues of salaries/wages to the concernedemployees/legal heirs of the employes of the sugar factory inBliquidation on proper identification and verification of the claimsand to be deposited/paid directly in the bank account of theconcerned employees/legal heirs of the employes of the sugarfactory in liquidation along with the interest @ 7.5% on theirrespective dues.

C(iv) The aforesaid amount to be disbursed to the concernedemployees/legal heirs of the employes of the sugar factory inliquidation at the earliest but not later than 31[st] December, 2023,as observed hereinabove with the utmost transparent manner andproper identification and verification of the claims of the respectiveemployees/legal heirs of the employes of the sugar factory inDliquidation.

(v) The balance amount, if any, remaining after making the paymentas above to the concerned employees/legal heirs of the employeesof the sugar factory in liquidation as above, be dealt with inaccordance with law and the balance amount be paid to theEappellant – bank towards dues of the bank.

With this, present applications stand disposed of.

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Nidhi Jain

(Assisted by : Shashwat Jain, LCRA)

Applications disposed of.

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