Labour union of MG Textile Ltd. (MGL) filed a winding-up petition for unpaid wages of workmen. Will the petition be maintainable? Based on case laws, give your opinion as to the workers' right in winding-up.
CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · December 2015
Labour union of MG Textile Ltd. (MGL) filed a winding-up petition for unpaid wages of workmen. Will the petition be maintainable? Based on case laws, give your opinion as to the workers' right in winding-up.
Answer & Explanation:
There is nothing in the Act which prohibits workers from being heard in a winding up petition. Accordingly, the workers would be entitled to be heard though as interveners and not as parties. Further after the winding up order is made, the workers may appeal against it. But once the order becomes final, the workers shall not participate in any further proceedings [National Textile Workers' Union v. P.R. Ramakrishnan (1983) 53 Comp. Cas. 184].
Topics: Insolvency
Related Questions in this Topic
- M/s Speed Airways Pvt Ltd. a borrower, filed a case before a civil court that Diligent Bank, a secured creditor, has not...
- UNCITRAL Model Law is binding on member countries but at the best obiter dicta for Courts of the member countries dealin...
- Progress of enforcement of Insolvency and Bankruptcy Code, 2016 depends on four pillars apart from the adjudicating auth...
- "Banks and financial institutions do have free hands to take possession of assets of a defaulting debtor under Securitie...
- Unlike Companies Act, 1956 winding up can be resorted to only when resolution plan either could not be finalised or fail...