EXAMINE under the provisions of the Companies Act, 2013 whether the appeal filed by the workers would succeed and their dues/interest will be…

According to Section 279 of the Companies Act, 2013, when a winding up order has been passed or a provisional liquidator has been appointed, no suit or other legal proceeding shall be commenced, or if pending at the date of the winding up order, shall be proceeded with, by or against the company, except with the leave of the Tribunal and subject to such terms as the Tribunal may impose. It is further provided that any application to the Tribunal seeking leave under this section shall be disposed of by the Tribunal within sixty days. However, the above provision shall not apply to any proceeding pending in appeal before the Supreme Court or a High Court. According to Section 325/326/327 of the Companies Act, 2013, in the winding up of a company under this Act, the workmen's dues shall be paid in priority to all other debts ranking pari passu with secured creditors. As per the facts of the case, the High Court has already passed a winding up order of the company. Hence, the workmen can appeal against the winding up order but only with the leave of the Tribunal and subject to such terms as the Tribunal may impose. Further, the dues/ interest of the workmen will be protected in priority as workmen's dues shall be paid in priority to all other debts ranking pari passu with secured creditors.