NISHANT

Companies court is empowered to award interest on the dues of secured creditors/workmen for the further period from the date of winding up order strictly in terms of rule 179

NISHANT MEHROTRA 25 Jan 2018

Companies court is empowered to award interest on the dues of secured creditors/workmen for the further period from the date of winding up order strictly in terms of rule 179

Bombay High Court :: in Rashtriya Mill Mazdoor Sangh v. Official Liquidator, High Court, Bombay :: 

Rule 179 read with sections 529, 529A and 530 of Companies Act, 1956 – Winding up – Payment of subsequent interest – Power of court to award interest to the workmen from the date of winding up order – The court is empowered to award interest on the dues of secured creditors/workmen for the further period from the date of winding up order strictly in terms of rule 179. However, the claim for interest would arise only if the company was left with surplus funds after distribution of the dues of the secured creditors and workmen on pari passu bases as per sections 529 and 529A and after distribution of preferential dues under section 530.

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Deviprasad
I would like to know interest payable on workmen dues after Liquidation. Pls send me the current judgements if any on subject. Regards Deviprasad
Deviprasad 9 Feb 2018
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