1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.1921 OF 2005 Maharashtra State Financial Corporation ..Petitioner. Vs. Galaxy Spectromelt Pvt. Ltd. And others .. Respondents. .... Mr. M.P. Rege i/b M/s. M.P. Rege & Co. for the Petitioner. Ms. Sandhya Mailagin i/b Mr. Bhavesh Parmar for Respondent No.2. .... CORAM: DR. D.Y. CHANDRACHUD, J. 17th November, 2008. P.C. : 1. Rule, by consent of the learned counsel made returnable forthwith. Counsel appearing for the Respondent waives service. By consent of the learned counsel, the matter is taken up for hearing and final disposal. 2. An order passed by the Industrial Court at Nashik on 21st September, 2004 directing the Maharashtra State Financial Corporation – the Petitioner to deposit an amount of Rs.6.56 lacs in a complaint of unfair labour practices is called into question in these 2 proceedings under Article 226. The First Respondent, as the facts disclosed in the Writ Petition will show, declared a closure of its manufacturing activities at Satpur by a notice dated 4th July, 1999. The Second Respondent instituted a complaint of unfair labour practices under Item 6 of Schedule II and Items 9 and 10 of Schedule IV of the Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971. It appears that on 9th September, 1999 certain terms of understanding were arrived at between the First Respondent and the Second Respondent union. The First Respondent filed an application seeking the permission of the Industrial Court for the disposal of its machinery and deposited an amount of Rs.7 lacs. The Petitioner came to be impleaded as a party to the proceedings before the Industrial Court in December 2000. In its written statement before the Industrial Court the Petitioner averred that the First Respondent had obtained a loan in the amount of Rs.22.25 lacs. There was a default in the payment of the amount following which the assets of the First Respondent were sold by the Petitioner in exercise of powers under the State Financial Corporation Act, 1951 for an aggregate amount of Rs.36 lacs. On 9th January, 3 2002 the Industrial Court passed an interim order directing the First Respondent employer to deposit an amount of Rs.14,97,814/- towards the dues of the workers. The order of the Industrial Court was impugned by the First Respondent in writ proceedings before this Court. An order was passed therein on 4th April, 2002 by Hon'ble Mr. Justice F.I. Rebello noting inter alia that the property belonging to the First Respondent had been sold by the Petitioner herein in exercise of the charge which it held. A statement was made before the Learned Single Judge on behalf of the Petitioner that the Petitioner had received an amount in excess of the dues which were outstanding. This Court noted that the First Respondent had already deposited an amount of Rs.7 lacs before the Industrial Court. The Learned Single Judge directed that as and when the balance of the amounts which were due from the purchaser were received by the Petitioner herein, they would be deposited before the Industrial Court. 3. In pursuance of the order passed by the Learned Single Judge of this Court the Petitioner deposited an amount of Rs.4,32,229/- before the Industrial Court at Nashik on 30th August, 4 2004. Prior thereto in March and May 2004 the Petitioner had received the final installments payable in respect of the sale of the assets of the First Respondent. On the application by the Second Respondent the impugned order was passed by the Industrial Court on 21st September, 2004 directing the Petitioner to deposit a further amount of Rs.6,56,000/-. 4. The Petitioner has annexed to the writ proceedings a statement of the amount which was realized from the sale of the assets, the outstandings due and payable to the Petitioner and the surplus which was held by the Petitioner. The statement at Exhibit F would show that an amount of Rs.36 lacs was realized by the Petitioner on the sale of the assets of the First Respondent. The dues of the Petitioner inclusive of interest upto the date of sale were Rs.30,89,356/- while the sale expenses were Rs.52,415/-. The total amount which was liable to be adjusted from the sale proceeds was Rs.31,41,771/- leaving a gross surplus of Rs.4,58,229/-. The Petitioner has also adjusted legal expenses of Rs.26,000/- therefrom. An amount of Rs.4,32,229/- was thus deposited before the Industrial 5 Court in compliance with the order passed by a Learned Single Judge of this Court on 4th April, 2002 in Writ Petition 1345 of 2002. The order passed by the Learned Single Judge proceeded on a statement made by the Petitioner that the amount which it had realized from the sale proceeds was in excess of the dues outstanding to the Petitioner and that consequently the Petitioner was ready and willing to deposit the balance before the Industrial Court. In pursuance of the statement which was made before the Learned Single Judge an amount of Rs.4,32,229/- has been deposited before the Industrial Court. The direction contained in the impugned order of the Industrial Court to the effect that the Petitioner should deposit a further sum of Rs.6.56 lacs was manifestly in error and in excess of jurisdiction. The Petitioner cannot be directed to deposit an amount in excess of the surplus which had remained after the adjustment of its dues. In these circumstances, the interim order of the Industrial Court dated 21st September, 2004 which is impugned in these proceedings will have to be set aside and is accordingly set aside. Rule is made absolute in the aforesaid terms. There shall, however, be no order as to costs. 6 *****