Law: Companies Ordinance, 1984

Section: 405

Law: Constitution of Pakistan, 1973

Section: 185(3)

Companies Ordinance (XLVII of 1984)---S. 405---Constitution of Pakistan (1973), Art.185(3)---Liabilities of company---Settlement of claims---Procedure---Proposed scheme' for distribution of sale proceeds received from sale of assets was approved by Company Judge and Official Liquidator had made proportionate payments to ex-employees of the company---Plea raised by ex-employees of the company was that order regarding scheme for distribution of sale proceeds should have been a detailed order and after paying revenue tax etc. total claim of ex-employees of the company should have been satisfied---Validity---Even admitted claims of secured creditors and first charge holders could not be satisfied from sale proceeds of assets of the company thus ex-employees of the company were treated as preferential claimants and were rightly disbursed the amount in accordance with law and their claims were rightly satisfied---No detailed order was required for distribution of sale proceeds as company had been ordered to be wound up through detailed order, thereafter it was function of Official Liquidator to receive claims from creditors, scrutinize the claims and furnish his recommendations before Company Judge seeking order for implementation of final scheme for distribution---None including petitioner, raised objection to proposed scheme of distribution, therefore, it was rightly and validly approved by company Judge and Company was finally directed to distribute the amounts to secured creditors---Order passed by Company Judge for distribution of sale proceeds among creditors was justified and Supreme Court declined to interfere in the same---Leave to appeal was refused. ORDER MIAN HAMID FAROOQ, J.---Petitioners, nine in number, claiming to be the ex-employees of defunct Company namely Messrs Sampak Paper and Board Mills etc. (Company), seek leave to appeal against the order, dated 5-12-2003, whereby the learned Company Judge of the Lahore High Court at Lahore ordered for dissolution of the Company and the file of the case was consigned to record. 2. Initially, the Company filed an application before the learned Company Judge, Lahore High Court, Lahore for its voluntary…

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