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

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic