SC Permits Maharashtra Co-Operative Bank To Withdraw Balance Amount After Payment Of Employees' Dues

The Supreme Court has directed the Collector, Bhandara to distribute the amount deposited as per the entitlement of every employee of the sugar factory in liquidation after proper identification of the claims, proportionately, along with interest of 7.5% on their respective dues and also permitted the Maharashtra Co-operative Bank to withdraw balance surplus amount.

The Bench of MR Shah and Justice Krisha Murari was hearing a miscellaneous application preferred by the original appellant -The Maharashtra State Co-operative Bank Ltd. for permitting the bank to withdraw the excess amount so deposited by the appellant along with the accrued interest.

AOR Anagha S. Desai appeared for the Appellant before the Court.

The Apex Court by a detailed judgment in 2019, had upheld the right of the employees of the sugar factory to receive the amount from the appellant - bank and has held that the applicant/appellant bank must pay the employees' dues out of the sale proceeds from the auctioned property.

The Court noted that regarding the other statutory dues in relation to employees namely provident fund, gratuity, bonus, etc. were concerned, the liability had been fastened upon the subsequent purchaser.

Therefore, the Apex Court directed the amount of Rs. 3.52 crores along with interest accrued and the amount of Rs. 13,89,84,334 /- deposited with the Industrial Court, Bhandara be transferred to the Collector, Bhandara, and the same be distributed to the respective employees’ dues of salary/wages to the concerned employee/legal heirs of the employees after proper identification and verification of the claims.

“The balance amount, if any, remaining after making the payment as above to the concerned employees/legal heirs of the employees of the sugar factory in liquidation as above, be dealt with in accordance with law and the balance amount be paid to the appellant – bank towards dues of the bank.” the Apex Court further directed.

Accordingly, the application was disposed of.

Cause Title- The Maharashtra State Co-operative Bank Ltd. v. Babulal Lade & Ors. 

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