Supreme Court of India

Textile Labour Association and Anr. v. The Official Liquidator and Anr.

Neutral citation
Reported as [2004] 3 S.C.R. 1161
Bench S. Rajendra Babu, Dr. Ar. Lakshmanan and G.P. Mathur JJ.
Decided 12 April 2004

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

3 Supreme Court benches have cited this judgment.

What the Court ordered

In the result, we make it clear that order made by this Court on G 17.10.1997 in I.A.No. 168-178/1997 in Civil Appeal No. 8530-40/1983 will have to be read subject to provisions of Sections 529 and 529A of the Companies Act.

Judgment, page 6

From the headnote

Companies Act, 1956: Ss. 529, 529- and 530-Company under liquidation-Priority of claims-Held, s.529- will override all claims of other creditors even where a decree has been passed by a court-Purpose of s.529- is to ensure that workers should not be deprived of their legitimate claims and assets of the Company would remain charged for payment for workers' dues- Such charge will be pari passu with the charge of secured creditors and have to be treated accordingly-Constitution of India, 1950-Article 142. In the civil appeals disposed of by the Supreme Court, the official liquidator filed an

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