Q: I used to work in a public limited company that had its registered office in Calcutta. I joined the firm 15 years ago, in 1992, as a non-management staff and in course of time got promoted to the rank of an officer.
Then, in October 2004, the production at the company’s only manufacturing unit suddenly stopped and our payments became irregular. Eventually, in December 2006, the company stopped paying us salary although we continued to report for duty everyday on the promise that production would resume soon.
But after working for nine months without pay, having no other choice, I finally submitted my resignation in July 2007, which was accepted.
In my resignation letter, I requested the management to clear my outstanding salary and other legitimate dues such as leave encashment, LTC, provident fund and gratuity. But I have received no communication from the company to date.
All the directors of the company are based in Ahmedabad and the company’s offices in Calcutta are under lock and key since August 2007. Almost everyone employed at the Calcutta head office has now resigned and there is nobody from the management available here to redress our grievances.
In the meantime I came to learn that the company has started importing goods — similar to what it manufactured — from China and is now earning good money by trading in them.
My colleagues and I who have resigned from service are now at a loss as to how to recover our dues and are facing financial hardship. Could you please let me know the procedure and means to recover my hard earned money?
Name withheld on request
A:Once you resign and your resignation is accepted, you are no longer an employee of the company and must seek civil measures to recover your dues.
The first thing to do is to quantify your claim and make an immediate written demand for payment, with up to date interest, addressed to the registered office of the company. You could send copies of the letter to the directors and the branches of the company also by way of abundant caution.
Make sure you send the letters by registered post so that you have evidence that the same have been duly served on the company. Refusal to accept or claim the letter by the company will amount to good service in law.
Thereafter, institute proceedings for winding up under Sections 433, 434 and 439 of the Companies Act 1956 before the Calcutta High Court after 21 days of making the demand.
If you can demonstrate that the company is still doing business as you claim, you can also seek interim orders for appointment of a provisional liquidator under Section 450 of the Companies Act to ensure that the existing stock and assets of the company are not frittered away.
The mechanism of winding up proceedings is less expensive and less time consuming and once one such petition is admitted by the high court, the other creditors such as your colleagues may join in the action.
Your other remedy is to file a civil suit before the appropriate competent court.
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Calcutta 700001;
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