On the said application of the workers, the learned Company Judge passed an order on 16th May, 2002 directing PSIDC to release funds in terms of the order of Chief Minister dated 25th August, 2001 to the Official Liquidator within a period who was directed to disburse it to the workmen after examining the claim of each workman.
The workers association, that is respondent No.1 filed an application before the Company Judge in the High Court of Punjab and Haryana under Rule 9 of the Companies Court Rules, 1959 seeking a direction to PNFC represented by Official Liquidator and PSIDC to pay six months salaries to the employees.
Lastly, it was represented that the interest of the workers was protected because the workers dues were the first charge on the sale proceeds of assets of the Company in view of Section 529 A of the Companies Act.
The said appeal was dismissed vide order dated 4th July, 2002 which is subject matter of the present appeal.
The review application was dismissed vide order dated 7th June, 2002.
Thereafter, the appellant filed an appeal against the order of the Company Judge dated 16th May, 2002 before a Division Bench of the High Court.
The learned companynsel for the appellant submitted that the PSIDC was formed in the year 1966 as one of the State Financial Institutions for promoting and developing industries in the State of Punjab.
Secondly, the PSIDC denied its liability to pay on the ground that the workers who were to be paid were number the workers of the PSIDC.
The PSIDC applied for review of the said order of the Company Judge on the ground that it was number in a sound financial position to make the payment.
Both the companypanies were separate legal entities.
The object was to ensure industrial development in the State.
In their application, the workers sought relief mainly on the basis of the said numbere of the Chief Minister terming it as an order of the Chief Minister.
The workers were therefore agitating for payment of their wages.
Was it legally permissible?
The PNFC was one of the several companypanies promoted by the PSIDC.
