1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY O. O. C. J. COMPANY APPLICATION NO.1129 OF 2009 IN COMPANY PETITION NO.75 OF 1999 Exxon Chemicals International Services. ` ...Petitioner. Vs. M/s.Hico Products Limited (In liqn) ...Respondent. And Association of Chemical Workers Union. ...Applicant. .... Ms.Nayana D.Buch i/b. S.K. More for the Applicant. Mr. P. Rama Rao, O.L. Present. ..... CORAM : DR.D.Y.CHANDRACHUD, J. November 26, 2009. P.C. The Company Application has been filed by the Association of Chemical Workers. The relief that is sought is a direction to the Liquidator to disburse the amount as adjudicated by the Liquidator on the claim of the erstwhile workmen of the Company in liquidation to widows of deceased employees, without insisting on the production of heirship/succession certificates or letters of administration. The Company Application has been filed on behalf of the heirs of 38 workmen, all of whom are stated to have died. The contention of the 2 Applicant is that the Liquidator may be directed not to insist upon the production of succession certificates/heirship certificates or letters of administration in cases where the claims have been lodged by the widows of the respective deceased employees, in order to obviate the hardship and expense which may be involved in compliance with these formalities. It has been stated that the insistence upon the production of heirship certificates or succession certificates or letters of administration would result in legal expenses which many of the widows are not in a position to afford. Reliance has been placed on an order passed by the Hon'ble Shri Justice D.R. Dhanuka on 27th February 1996 in Pravin G. Shah Vs. Bradbury Mills Ltd. (in liquidation) (CP 1/82). In that case, the Learned Single Judge has issued the following directions: In case the amount is claimed by the sole heir of the deceased workers creditors the claimant shall file the necessary affidavit clearly setting out therein that the deceased had left no other heir. In the said affidavit, the claimant shall set out his relationship with the deceased. The claimant shall have to be identified by an Advocate practicing in this Court and also by an authorized representative of Rastriya Mill Mazdoor Sangh. In case of the deceased had left more than one legal heir, the claimant shall have to produce the letter of consent or letter of authorization from the other heirs authorising the claimant to receive the dividend amount. The Official Liquidator 3 shall obtain a letter of indemnity or indemnity bond from the claimant. Such a claimant shall have also to be indemnified by an advocate of this Court as well as by an office bearer of Rashtriya Mill Mazdoor Sangh. If the above referred procedure is strictly followed, the official liquidator may not necessarily insist on issue of succession certificate. The official liquidator shall however take the President/Secretary or other authorized office bearer of Rashtriya Mill Mazdoor Sangh into confidence before releasing the amount. Since the amounts to be paid to the legal heirs of the deceased are rather small and the workman are from weaker section of the Society, the above referred procedure is evolved in order to reduce the hardship of the claimant. The Official Liquidator has filed a status report dated 19th November 2009, setting out the amounts which are due and payable as adjudicated on account of the services of 38 erstwhile employees. Though the Liquidator has submitted that the production of heirship certificates should be insisted upon, he has suggested, in the alternative, certain modalities to ensure proper identification of the widows of the deceased employees. In my view, having regard to the nature of the claims and the fact that 38 workmen died in the interregnum, some modalities may be worked out in order to obviate the serious hardship and expenses that may be caused to the widows in the disbursement of amounts. However, it is clarified that where 4 disbursement is sought by the legal heirs, other than by widows of the employees, the Official Liquidator shall follow the normal procedure and insist upon the production of heirship/succession certificates/letters of administration. Hence the following order: -(i) While disbursing the dues on account of the services of the deceased workmen as adjudicated by the Liquidator, and set out in the report dated 25th November 2009, the Liquidator will, where a claimant is a widow of a deceased employee, not insist upon the production of succession/heirship certificate/letters of administration. This shall be subject to compliance with the procedure which is set out in clauses (ii) and (iii) below; -(ii) A Member of the Managing Committee of the Applicant- Union, shall furnish an affidavit-cum-indemnity bond and identify the credentials of the Applicant by attesting the claim papers/documents; -(iii) At the time of the release of the payment on the appointed date as mutually decided by the Applicant and the legal heirs, 5 the identity of the widow of the deceased employee should be verified and attested in the office of the Liquidator in order to ensure that the payment is released only to the widow concerned who is entitled to receive the dues. The Company Application shall accordingly stand disposed of. .....