22 years later, Gujarat HC orders to pay interest to closed mill workers
Saeed Khan | TNN | Mar 9, 2019, 22:53 IST
Gujarat high court (File photo)AHMEDABAD: Gujarat high court has ordered the Official Liquidator(OL) to pay Rs 13.22 crore to former workmen of Shree Ambica Mills Ltd towards the interest accrued on the amounts payable to them since the four units of the mill went into liquidation in 1997.
After two textile units of the mill in Ahmedabad, a unit in Vadodara named Sunita Mills and the Tube Division in Vatva went into liquidation, 3709 workmen were demanding their dues. They were paid Rs 36 crore towards their dues in 2010.
After the OL submitted his report about settlement with the creditor institutions, advocate Dhimant Vasavada on behalf of the Textile Labour Association (TLA) requested to pay the interest on the dues between 1997 and 2010. The HC ordered the OL to disburse the money after following a procedure and verifying the claims.
The court ordered the OL to disburse Rs 9.08 lakh among 633 workers of the Tube Division after getting their individual claims verified by the Chartered Accountant. The HC has also ordered to keep aside Rs 1 crore for 36 workers and to pay on their making claims and complying with conditions laid down by the court.
After two textile units of the mill in Ahmedabad, a unit in Vadodara named Sunita Mills and the Tube Division in Vatva went into liquidation, 3709 workmen were demanding their dues. They were paid Rs 36 crore towards their dues in 2010.
After the OL submitted his report about settlement with the creditor institutions, advocate Dhimant Vasavada on behalf of the Textile Labour Association (TLA) requested to pay the interest on the dues between 1997 and 2010. The HC ordered the OL to disburse the money after following a procedure and verifying the claims.
The court ordered the OL to disburse Rs 9.08 lakh among 633 workers of the Tube Division after getting their individual claims verified by the Chartered Accountant. The HC has also ordered to keep aside Rs 1 crore for 36 workers and to pay on their making claims and complying with conditions laid down by the court.
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