M/S Sirsilk LTD. (In Liqn) vs. Industrial Development Bank Of INDIA
Held
The Court found the proposed enhancement of salaries for the security guards, from Rs. 3,500 to Rs. 5,000 per month per guard, to be reasonable, considering the increased cost of living. Since there was no objection from the respondent secured creditor, the Company Application was ordered accordingly. The Court permitted the Official Liquidator to pay the enhanced watch and ward salaries, along with applicable GST, to M/s National Security Agency from the funds of the company in liquidation, with effect from 01.01.2018. The specific amount of GST was not detailed, but its payment was permitted as applicable.
Facts
This matter concerns a Company Application filed by the Official Liquidator seeking permission to enhance the salaries of security guards and a supervisor for a company in liquidation. The proposed enhancement was from Rs. 3,500 to Rs. 5,000 per month per guard for 10 guards, and from Rs. 5,000 to Rs. 6,000 per month for one security supervisor, effective from January 1, 2018. The Official Liquidator also sought permission to pay these enhanced salaries, along with applicable GST, to M/s National Security Agency from the company's funds. The respondent secured creditor had no objection to the proposed enhancement.
Key Issues
1. Whether the proposed enhancement of watch and ward salaries for security guards and a supervisor, with effect from 01.01.2018, is reasonable and should be permitted from the funds of the company in liquidation. This issue turns on the court's discretion in managing the assets of a company under liquidation, considering factors like increased cost of living and the necessity of security services. Contentions: Petitioner (Official Liquidator): Argued that the proposed enhancement is reasonable in light of the increased cost of living and sought permission to pay the enhanced salaries, including applicable GST, from the company's funds. Revenue/State: No arguments were recorded for the Revenue/State in the judgment.
AI-generated summary — verify with the full judgment below
THE HON’BLE SRI JUSTICE CHALLA KODANDA RAM
COMPANY APPLICATION No. 45 OF 2018 IN COMPANY PETITION No. 57 OF 1999
O R D E R :
This Application is filed for the following relief: “ i. consider the proposed enhancement of watch & ward salaries for10 security guards from Rs.3,500/- to Rs.5,000/- per month per guard and one security supervisor from Rs.5,000/- to Rs.6,000/- with effect from 01.01.2018. ii. permit the Official Liquidator to pay the enhanced Watch & Ward salaries @ Rs.56,000/- per month plus GST as applicable to M/s National Security Agency with effect from 01.01.2018 from out of the funds of the Company (In liqn.)”
Heard learned counsel appearing for the Official Liquidator. In the light of the increased cost of living, the enhancement of salary of security guards sought from Rs.3,500/- to Rs.5,000/- per month per guard is reasonable. In those circumstances and there being no objection from the respondent secured creditor, the Company Application is ordered accordingly.
____________________________ CHALLA KODANDA RAM, J 29th March 2018
ksld
The judgment continues below.
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