1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION OFFICIAL LIQUIDATOR’S REPORT IN CASE NO. 1 OF 2009 A/W. SUBMISSION DT. 2/5/2009 In the matter of Companies Act, I of 1956; And In the matter of Various Companies (In Liqn.); Ms.Molina Thakur for the Company Paid Staff. Mr. C.U.Singh, Sr. Counsel a/w. P.Ramarao – Official Liquidator. CORAM:- A.M.KHANWILKAR, J DATED:- July 17, 2009. P.C. Heard Counsel for the parties. 2. The only question that needs to be addressed is about the scheme or package to be offered to the Company Paid Staff. In deference to the deliberations that took place during the previous hearing, Official Liquidator has submitted his further report dated 9/7/2009 making recommendation regarding 2 the package to be offered to the Company Paid Staff. Broadly, the recommendation seems to be fair and acceptable. However, only minor changes will have to be effected in the proposed package in relation to the following matters. i) The cut off date for fixation of basic pay recommended by the Official Liquidator as 1/1/2007 be read as 1/1/2006. This, however, does not mean that the Company Paid Staff is being equated with the Regular Staff who would receive benefit on account of 6th Pay Commission w.e.f. 1/1/2006. ii) In so far as the recommendation made with regard to fixation of pay on promotion, I find no merit in the submission made by the Counsel for the Company Paid Staff. In my opinion, the recommendation is appropriate and does not merit any change. iii) In so far as the recommendation in clause iv(c) regarding the deduction of LIC premium, there is no infirmity even in that recommendation. That does not affect the existing scheme regarding pension scheme and medical insurance policy which is introduced in lieu of ex-gratia payment in terms of order dated 29/10/2005. iv) In so far as recommendation made by the Official Liquidator with regard to encashment of earned leave for a period of 180 days, I am in agreement with the submission canvassed on behalf of the Company Paid Staff that the same should be commensurate with prevailing practice and regulations governing the Regular Staff of 300 days. 3 v) In so far as Maternity Leave of 135 days recommended by the Official Liquidator, I am informed that the Regular Staff avails of 180 days of Maternity Leave as per the extant Regulations. In my opinion, even this facility can be conceded to the Company Paid Staff. In other words, the Maternity Leave will be for a period of 180 days for each delivery subject to maximum of two deliveries. vi) The last objection taken by the Company Paid Staff is in relation to clause-vii of the Report which makes recommendation to maintain prescribed daily diary and the Annual Performance Report on the line of the Confidential Report of the Central Government Staff. In so far as introducing that mechanism is concerned, that will go a long way to strengthen the administration in the Office of the Official Liquidator. No fault can be found with the said recommendation. However, the last part of the said clause which further recommends that the Performance Report can be considered for grant or otherwise of annual increment of the concerned staff, that may result in imposing punishment. Recommendation in respect of considering the Performance Report to grant or otherwise of “annual increment” only would stand effaced in terms of this order. I am inclined to do so as stoppage of annual increment may result in imposing punishment which may require giving opportunity of being heard to the incumbent in question. This does not mean that the Official Liquidator is denuded of his authority to proceed against the concerned person who is persistently found to be misconducting or indulging in insubordination. That is a matter to be addressed by adopting appropriate procedure as may be advised. It is 4 clarified that the said Performance Report can, however, be considered for promotion of the concerned staff. 3. Except to the above extent, the recommendation of the Official Liquidator with regard to the package to be offered to the Company Paid Staff is accepted. (A.M.KHANWILKAR, J)