- (1.) HEARD Sri V. K. Birla, learned Counsel for the appellant and Sri Ashok Mehta, learned Counsel appearing for the official liquidator.
(2.) THIS appeal under section 483 of the Companies Act read with Chapter VIII, Rule 5 of the High Court Rules has been preferred against the order dated 17. 9. 2007 passed by Hon'b'le Company Judge rejecting the application of U. P. Industrial Co-operative Association Ltd. (hereinafter referred to as the "appellant") claiming for deduction of the amount of loan as a result of credit sale to the workman of the company and pay directly to the appellant.
(3.) IT appears that certain goods were provided on loan to the workman of M/s. U. P. State Cement Corporation Limited (hereinafter referred to as the "company") and for payment of the cost of such article the procedure adopted was that the amount was to be paid in six installments to the appellant by making deduction from monthly salary of the concerned workman, by the company, and was to be paid to the appellant directly. Since the regular monthly salary of the workman itself could not be paid by the company, the amount of loan installments also could not be paid to the appellant. The appellant submits that as a result of auction of the company, the amount of wages are being paid to the worker by the official liquidator and from that amount his dues should be deducted and be paid directly by the official liquidator to the appellant. The Hon'ble Single Judge has rejected the application on the ground that since the 'workman dues' are to be treated as overriding preferential payments under sections 529, 529-A and 530 of the Companies Act, 1956 (hereinafter referred to as the "act") and the dues of the appellant being unsecured debts, the appellant cannot be paid the said dues by the official liquidator.;