1 921.ca.591.10 cp778.05 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION COMPANY APPLICATION NO.591 OF 2010 IN COMPANY PETITION NO.778 OF 2010 B.I.F.R. ....Petitioner And Kamani Employees Union ....Applicant V/s. M/s.KMA Ltd. (in liquidation) ....Respondent .... Ms.Apoorva Kaiwar for the Applicant. Ms.Priya Baliga i/by M/s.M.V.Kini & Co. for Bank of Baroda. Mr.Shailesh Naidu i/by Gauri Rao for dissenting-Bangalore Workers. Mr.N.M.Ganguli for dissenting Kurla Workers. Mr.T.Pandian, Deputy Official Liquidator present. .... CORAM : S.J. VAZIFDAR, J. DATE : 22ND DECEMBER, 2010. P.C. :- 1 This is an application on behalf of four workmen of the company in liquidation for the release of an amount of Rs.5,56,583/- (Rupees five lakh fifty six thousand five hundred and eighty three only). These workmen have agreed to accept the amounts in accordance with the consent terms dated 8th July 2008 filed in Writ Petition Nos.285/2006, 195/2006 & 459/2007. Further, by order dated 13th March 2009 in 2 921.ca.591.10 cp778.05 Company Application No.1610/2008 in Company Petition No.778/2005 the consent terms were taken on record and order in terms thereof was passed without prejudice to the rights of the dissenting employees. Two of the present Applicants are workmen of the company and the other two are the legal heirs of workmen of the company. An amount of over Rs.11.50 crores is lying deposited pursuant to the order of this Court. The amounts that the Applicant seek to withdraw are the minimum amounts that would be due to them in any event as per the consent terms. Permitting them to withdraw the amounts would not affect any of the dissenting employees, for whose benefit the amount has been deposited. The Applicants are in grave needs of funds for various reasons including towards medical expenses. 2 In the circumstances, I am inclined to permit this application. The only difficulty is that there is only one fixed deposit for the entire original amount of Rs.11.38 crores. The Bank of Baroda, who has issued the fixed deposit has confirmed that if the deposit is prematurely encashed partially, namely to the extent of Rs.5,56,583/-, only 0.5 percent loss of interest would be incurred on the said sum of Rs.5,56,583/- provided that the deposit is encashed after 3rd January 2011. 3 In the circumstances, the Company Application is made absolute in terms of prayers (a) & (b). 3 921.ca.591.10 cp778.05 4 The Official Liquidator shall encash the said fixed deposit to the extent of Rs.5,56,583/- only after 3rd January 2011 and pay over the amounts to the Applicants. The Union shall while disbursing the amount, verify the identity of the concerned workmen or as the case may be, of the legal representatives and shall file an affidavit of compliance which shall include stamp receipts of the persons to whom disbursement is made. 5 In the event of the said workmen being entitled to any further amounts under the said consent terms, any loss of interest arising on account of the fixed deposits being encashed prematurely, shall be adjusted from the said dues. 6 The fixed deposit for the balance amount, as confirmed by the Bank of Baroda in Court, shall continue on the original terms. 7 The Company Application is accordingly disposed of. -