Major victory for Nicco Corporation staff; Liquidator ordered to recalculate dues
The employees of Nicco Corporation Ltd, the Kolkata-based EPC and Cable manufacturer, got a major victory after the National Company Law Tribunal directed the Liquidator to carry out fresh computations of the workmen’s dues in compliance with the provisions of the Industrial Dispute Act, 1947.
The Kolkata bench of the NCLT agreed to the employee association’s plea that computations of workmen’s dues submitted by the liquidator — Vinod Kumar Kothari — are incomplete and inconsistent.
The tribunal noted that on perusal of the computation submitted by the liquidator before this Adjudicating Authority, it can be seen that the Liquidator has failed to admit the compensation due to the workmen under sections 25FFF and 25F of the Industrial Dispute Act, 1947. It further said that, no explanation has been provided by the liquidator for not admitting the wages/salaries of all but 40 workmen in their computation.
The Nicco Employees Union had filed a petition before the tribunal requesting it to direct the liquidator to forthwith calculate the terminal benefits of 324 member workmen at Rs 6,89,75,549 and, upon calculating the total amount payable to the said workmen on the basis thereof to forthwith disburse such payment to them.
The liquidator, though, has quantified the total terminal benefits of the 324 workmen at Rs 6,89,75,549 and agreed to make payment of 17% of the same.
Nicco Corporation employee association had pleaded before the tribunal that the total computation arrived at by the liquidator of terminal benefits payable to the 324 members is erroneous.
“The Liquidator has proceeded to admit compensation payable to the member workmen only in terms of section 25FFF read with section 25F2 of the Industrial Disputes Act, 1947, while ignoring the entitlement of all but 40 such workmen to their dues on account of wages and salaries for the period of 24 months preceding the liquidation commencement date,” the association said in its plea.
It was also submitted by the employees that the liquidator has failed to take into account the unpaid salary and wages of the workmen for the 24 months preceding the liquidation date i.e., for the period 18 Oct 2015 to 17 Oct 2017.
The aggregate amount of salary and wages payable to the 324 workmen amounts to Rs 10,30,61,554 which has been totally ignored.
The employees further argued that even in the event of a prorata distribution between the workmen and the secured creditors who had given up their security, 17% of the total terminal benefits payable to the workmen of the company would amount to Rs 2,92,46,307. The Liquidator has, however, offered to pay only Rs 1,47,76,859.
Nicco Corporation has been under liquidation since 2017 after it failed to get any bidders under the corporate insolvency resolution process.
Also Read: What Jet Airways resolution plan has for its employees, workmen
