The Hindu : Tamil Nadu / Chennai News : Standard Motor employees to receive Rs. 10 crore as arrears

Online edition of India's National Newspaper
Wednesday, Sep 20, 2006
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Tamil Nadu

Tamil Nadu - Chennai

Standard Motor employees to receive Rs. 10 crore as arrears

Special Correspondent

CHENNAI: A sum of Rs. 10 crore is to be paid to the 2,190 members of the Standard Motor Products Limited Employees Union, in addition to Rs. 30 crore already disbursed, towards wage and bonus arrears, besides closure compensation benefits.

(The 57.94-acre land of the company has been sold for Rs. 154.1 crore to the Sriram Properties Limited).

A settlement to this effect was reached among counsel for the workers of the defunct and under-liquidation motor company, the Official Liquidator and representatives of banks. The matter reached the Mediation and Conciliation Centre in the Madras High Court premises after Justice Chitra Venkataraman referred it to it in March 2006.

While advocates N.G.R. Prasad and K. Srinivasa Murthy represented the workers, senior counsel Sriram Panchu and Yashod Vardhan functioned as mediators.

The Official Liquidator and counsel for various banks, which are the secured creditors, also participated in the proceedings.

As per the latest settlement, while the workers union will get Rs. 10 crore in addition to Rs. 30 crore already received, the secured creditors/banks would get Rs. 40 crore in addition to Rs. 50 crore already received.

Out of the remaining Rs. 24 crore, preferential creditors such as debenture-holders, and Government dues such as tax and electricity arrears would be settled.

The remaining sum, if any, would be passed on to share-holders of the company, Mr. Prasad said.

Eligible employees will get their unpaid salary, bonus arrears, closure notice compensation and gratuity arrears now.

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