THE MAHARASHTRA STATE CO-OPERATIVE BANK LTD. versus BABULAL LADE & ORS.

THE MAHARASHTRA STATE CO-OPERATIVE BANK LTD. versus BABULAL LADE & ORS.

The deposited amounts representing employees' wages/salaries must be transferred to the Collector, Bhandara and disbursed to the concerned employees or their legal heirs after proper identification and verification (with payment directly into their bank accounts and interest at 7.5%); other statutory dues (provident fund, gratuity, bonus) are payable by the subsequent purchaser; any balance after payment shall be returned to the bank.

Parties
Applicant/appellant: The Maharashtra State Co-operative Bank Ltd.; Respondents: Babulal Lade & Ors.
Jurisdiction
India
Judgment Date
24 March 2023
Procedural Posture
Miscellaneous Application No. 1308 of 2020 in Civil Appeal No. 232 of 2016 (supreme Court) / Order Disposing the Miscellaneous Applications (dated 24.03.2023)
Outcome
Miscellaneous applications disposed of with directions to transfer and disburse the deposited amounts as specified.
Legal Topics
Salary/wages, Liquidation, Distribution of Sale Proceeds, Employee Dues, Verification and Disbursement
Service Law Salary/wages Liquidation Distribution of Sale Proceeds Employee Dues Verification and Disbursement

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Parties

The Maharashtra State Co-operative Bank Ltd.

Applicant/appellant

Babulal Lade & Ors.

Respondents

Procedural Posture

Miscellaneous Application No. 1308 of 2020 in Civil Appeal No. 232 of 2016 (supreme Court) / Order Disposing the Miscellaneous Applications (dated 24.03.2023)

Legal Issues

  1. 1 Whether amounts deposited by the bank should be transferred to the Collector, Bhandara for distribution to employees/legal heirs
  2. 2 Whether the bank is liable only for wages/salaries and not for other statutory dues like provident fund, gratuity and bonus
  3. 3 What verification and identification process is required before disbursement and the mode of payment to employees

Ratio Decidendi

The deposited amounts representing employees' wages/salaries must be transferred to the Collector, Bhandara and disbursed to the concerned employees or their legal heirs after proper identification and verification (with payment directly into their bank accounts and interest at 7.5%); other statutory dues (provident fund, gratuity, bonus) are payable by the subsequent purchaser; any balance after payment shall be returned to the bank.

Court Disposition

Miscellaneous applications disposed of with directions to transfer and disburse the deposited amounts as specified.

Orders

  • Rs.3.52 crores deposited by the appellant-bank with this Court pursuant to the earlier order, along with accrued interest, shall be transferred to the account of the Collector, Bhandara for distribution to the concerned employees/legal heirs of the sugar factory in liquidation.
  • The sum of Rs.13,89,84,334/- lying with the Industrial Court, Bhandara, along with accrued interest, shall be transferred to the account of the Collector, Bhandara.