Ajoy Nath Ray, J. - (1.) This is an application for setting aside of my order dated 1 March, 1993, wherein I directed that the Official Liquidator is to treat the claims of the workers of the wound-up company as finalised and paid-off, since the matter had not reached finalisation till then, and since the claims of the secured creditor being the bank were being held up for such non-finalisation.
(2.) I have today come to the conclusion in an order passed in this matter, in an application made by Bank of India, that re-employed workers do not have claims par. passu the secured creditors, and that because of their compulsory re-employment, they both bring down the price of the assets of the company sold, and also secure for themselves the benefit of getting certain re-employment with the new purchaser. Thus they lose the benefit of (section) 529A [of the Companies Act, 1956] which was inserted as a special cushion for relieving the distress of totally displaced workers.
(3.) Under these circumstances, the order of 1 March, 1993, need not be recalled. The Official Liquidator is, however, directed to proceed expeditiously with the finalisation of the claims of the workmen for unpaid dues, if any, during the time they might have rendered service to the wound up company. It is clarified that these claims shall be finalised notwithstanding the re-employment, if any, of these workers with the new purchaser. After finalisation of such claims, they shall be paid alongwith other unsecured creditors of the company. It is, therefore, also ordered, if any further clarificatory order to that effect is necessary, that the finalisation of the claims of these workers of the wound up company will not in any manner restrain the Official Liquidator from making payments to secured creditors like the Bank of India or the Oriental Bank of Commerce who might have in their favour decrees or orders for payment already subsisting.;