Gujarat Engineering And General Kamdar Union Vs Official Liquidator (Gujarat High Court)
Multiple company applications were filed by secured creditors and workers’ unions of APS Star Industries Limited (in liquidation) seeking directions for disbursement of sale proceeds realized by the Official Liquidator from the sale of the company’s assets. Some applications also sought re-verification of workers’ claims under Sections 529 and 529-A of the Companies Act, 1956. As all applications arose from the same liquidation proceedings, involved common issues, and relied on earlier orders of the Court, they were heard together, with one application treated as the lead matter.
The company was ordered to be wound up on 12.02.2008. Thereafter, the Official Liquidator took charge of the company’s assets located at Vadodara, Nashik, Dharwad, and Dombiwali. Immovable properties at Nashik and Dharwad, along with movable assets, were sold pursuant to court orders, and the sale proceeds were deposited with the Official Liquidator. Claims of secured creditors, workmen, and statutory authorities were invited and verified through a Chartered Accountant firm. By an order dated 06.01.2023, the Court approved the ratio for distribution under Section 529-A.
In compliance with the approved ratio, the Official Liquidator had already disbursed an aggregate amount of ₹75,00,77,076 to statutory authorities, secured creditors, and various workers’ unions. The Official Liquidator reported that an additional amount of approximately ₹58 crore was available from sale proceeds received in 2024 from the Nashik and Dharwad units. An interim disbursement of ₹58 crore was proposed to secured creditors and workers using the same distribution ratio earlier approved, and a detailed tabulation of the proposed allocation was placed on record.
