If Case Can Be Filed Before The Labour Court Against The Closed Company For Arriers Or Other Benefits - CiteHR
Saswatabanerjee
Partner - Risk Management
Loginmiraclelogistics
Asso.prof.(commerce & Management) Pg
Neeta Mathur
Advocate(specialisation In Labour Law
+1 Other

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A mill of National Textile corporation Ltd.had become sick later on.it was winded up under the orders of B.I.F.R. Whether a workman can file a case before Labour Court for Realising his dues etc and whether case of termination can continue before labour court.in view of provisions of sick industrial undertaking act.
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It will involve long battle with the authorities. You will have to approach BIFR & the liquidator appointed by it, if any.
First, if the company has been wound up, nothing more can be done unless cases were filed against an individual for fraudulent activity
Secondly, now the SICA has been replaced with insolvency and bankruptcy code, under which worker rights are given priority over government dues and even in some cases bank dues. BIFR no longer has a role to play.
If the company has not yet been wound up, you can take the help of a IBC professional to file a plaint with the NCLT (which earlier was called comoany law board) for your rights. But that too is an expensive proposition as none of the professionals will work for free
Dear Neeta Mathur,

Learned members have given here the latest position in respect of industrial units become 'Sick'. In your case, the NTC have various mills all over India and what is the position about your unit is not stated here. Whether the HC passed any orders for closure or revival/rehabilitation or not has not been mentioned. If the case is pending before your state's HC then any claims can be filed with the very same HC. The HC will consider your claims and can pass orders to give priority over other creditors when the liquidation takes place (if and when a Liquidator is appointed to dispose off its assets and proceeds to be used to disburse among the creditors). Whereas if the rehabilitation scheme is under consideration then also the Nodal agency who have been if and when appointed should take your dues also as a part of revival cost. Its all depends on the legal status of your co. Here I attached a SC judgment in a case involving NTC decided in 2003 wrt employees' claims. I'm not sure whether this judgment will help you or not. However legal position can be taken note of.

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File Type: docx National Textiles Corporation Ltd.docx SC Judgment.docx (21.6 KB, 22 views)

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