Former MD's property attached for recovery of dues to employees
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Holding a former Managing Director of a group of companies guilty of contempt of court, the Madras High Court on Wednesday ordered the attachment of his property in Mylapore here, which should be sold through public auction for recovery of dues payable to employees. The court also imposed a fine of Rs.five lakh on him.
In its order on a contempt petition, the First Bench comprising Chief Justice M.Y.Eqbal and Justice T.S.Sivagnanam observed, "Taking note of the conduct of the respondent under normal circumstances, any court would feel convinced that the appropriate punishment is to commit the respondent to civil prison. However, in our view, such order would not meet the ends of justice, more so, when the employees are languishing without employment or wages and it is stated that some employees have died during pendency of the litigation, which has been pending for over 20 years."
The Bench said the property should be sold by the Industrial Tribunal by public auction. The children and wife of the contemnor, S.Srinivasan of Macneil and Magor Kilburn Group of Companies, should vacate the premises and hand over vacant possession of the building to the tribunal within 15 days.
Sale proceeds
The sale proceeds should be remitted to the credit of the complaint filed by Macneil and Magor Kilburn Group Companies Employees Union before the tribunal. The fine amount should also be remitted to the credit of the complaint within four weeks. This sum should be utilised for the settlement of the workers dues in addition to the sale proceeds.
Originally, the union filed a complaint under the Industrial Disputes Act with the tribunal against Macneil and Magor Ltd, Kilburn Electrical Ltd, Kilburn Control Systems Ltd., Kilburn Starters Ltd., and Kilburn Fabrication Ltd. In the dispute, the issue related to transfer of undertaking of its employees from Macneil and Magor Ltd., to other four companies. The substance of the allegations was that the four companies violated the ID Act and deprived workmen work and wages.
Ultimately, by an order of April 30, 2004, a Division Bench of the High Court directed the companies to implement the tribunal's award and the orders of a single Judge, which were in the union's favour.
Contending that this order was not implemented, the union filed the present contempt petition in 2006.
The petitioner's counsel, S.Vaidyanathan, contended that the tribunal's award had become final. As it was not implemented, Mr.Srinivasan was liable to be punished for committing contempt.
Mr.Srinivasan contended that violation of ID act would not arise. He was placed as a Non-Executive Director of the company and was not required to manage its affairs. The other executives placed as whole time Directors were managing its operations. Therefore, the contempt petition was not maintainable. However, the High Court rejected the contention as wholly untenable.
Special Correspondent Share · print · T+
Holding a former Managing Director of a group of companies guilty of contempt of court, the Madras High Court on Wednesday ordered the attachment of his property in Mylapore here, which should be sold through public auction for recovery of dues payable to employees. The court also imposed a fine of Rs.five lakh on him.
In its order on a contempt petition, the First Bench comprising Chief Justice M.Y.Eqbal and Justice T.S.Sivagnanam observed, "Taking note of the conduct of the respondent under normal circumstances, any court would feel convinced that the appropriate punishment is to commit the respondent to civil prison. However, in our view, such order would not meet the ends of justice, more so, when the employees are languishing without employment or wages and it is stated that some employees have died during pendency of the litigation, which has been pending for over 20 years."
The Bench said the property should be sold by the Industrial Tribunal by public auction. The children and wife of the contemnor, S.Srinivasan of Macneil and Magor Kilburn Group of Companies, should vacate the premises and hand over vacant possession of the building to the tribunal within 15 days.
Sale proceeds
The sale proceeds should be remitted to the credit of the complaint filed by Macneil and Magor Kilburn Group Companies Employees Union before the tribunal. The fine amount should also be remitted to the credit of the complaint within four weeks. This sum should be utilised for the settlement of the workers dues in addition to the sale proceeds.
Originally, the union filed a complaint under the Industrial Disputes Act with the tribunal against Macneil and Magor Ltd, Kilburn Electrical Ltd, Kilburn Control Systems Ltd., Kilburn Starters Ltd., and Kilburn Fabrication Ltd. In the dispute, the issue related to transfer of undertaking of its employees from Macneil and Magor Ltd., to other four companies. The substance of the allegations was that the four companies violated the ID Act and deprived workmen work and wages.
Ultimately, by an order of April 30, 2004, a Division Bench of the High Court directed the companies to implement the tribunal's award and the orders of a single Judge, which were in the union's favour.
Contending that this order was not implemented, the union filed the present contempt petition in 2006.
The petitioner's counsel, S.Vaidyanathan, contended that the tribunal's award had become final. As it was not implemented, Mr.Srinivasan was liable to be punished for committing contempt.
Mr.Srinivasan contended that violation of ID act would not arise. He was placed as a Non-Executive Director of the company and was not required to manage its affairs. The other executives placed as whole time Directors were managing its operations. Therefore, the contempt petition was not maintainable. However, the High Court rejected the contention as wholly untenable.
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