here applicant sought for payment of interest on claims of ex-employees of company-in-liquidation, Official Liquidator was directed to declare rate of interest and pay same

CL: Where applicant sought for payment of interest on claims of ex-employees of company-in-liquidation, Official Liquidator was directed to declare rate of interest and pay same
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[2014] 50 taxmann.com 103 (Karnataka)
HIGH COURT OF KARNATAKA
Mysore Acetate & Chemicals Co. VRS Employees Association
v.
Mysore Acetate & Chemicals Ltd. (Under Liquidation)
A.S. BOPANNA, J.
CO. APPLICATION NO. 1348 OF 2014
CO. PETITION NO. 45 OF 2001
AUGUST  21, 2014
Section 328, read with section 352, of the Companies Act, 2013/ Section 530, read with section 555, of the Companies Act, 1956 - Winding up - Preferential payments - Applicant-employees association sought for appropriate orders regarding payment of interest on claims made by ex-employees of company-in-liquidation - Court had directed Official Liquidator to make payment of interest - Whether Official Liquidator was permitted to declare interest at 4 per cent per annum as same being done pursuant to order of Court - Held, yes - Whether since ex-employees were scattered in different parts of State, Official Liquidator would make payment through office bearers of association and in respect of unclaimed dividend, Official Liquidator was permitted to comply with provision of section 555 - Held, yes [Paras 4 & 6]
Sridhar C.K., Advocate for the Applicant. V. Jayaram, Advocate for the Respondent.