A legal battle fought by the Birla Tyre Workers’ Union for the cause of workers has taken a new turn as a series of discrepancies and controversies has come to light regarding their claims and the resolution process.
Representing 297 workmen, the union had submitted a collective claim of nearly Rs 32 crore to the Resolution Professional (RP) in May 2022. However, the subsequent developments have brought attention to various inconsistencies and challenges, said BTWU president Raju Bal.
The RP's issuance of a list of admitted claims has raised eyebrows as only a mere 8.48 percent (around Rs 2.67 crore) of the total claimed amount was acknowledged, leaving a majority of the claim unaccepted. The significant gap between the claimed amount and the admitted portion has raised questions about the transparency and accuracy of the claim evaluation process.
Furthermore, a contentious issue has arisen from the RP's unilateral rejection of claims from 181 contractual workers, despite a directive from the Industrial Tribunal. The RP's decision, based on the premise of the lack of regularisation, appears to be an unauthorized move that has raised questions about the legal validity and fairness of the decision, Bal alleged.
The workmen have made determined efforts to seek intervention, including representations to various Governmental authorities and filing of a writ petition. The acknowledgment by the Divisional Labour Commissioner that the "No Work No Pay" principle is inapplicable due to the corporate debtor's failure to provide employment has added another layer of complexity to the situation.
The BTWU's claims of unmet benefits stem from the corporate debtor's acknowledgment of the union as a recognized entity in 2008. However, the corporate debtor's failure to fulfill promised benefits and facilities has led to the workmen's claims for their rights.
Amidst these intricacies, the BTWU has turned to legal avenues for resolution. An application under Section 60(5) of the IBC, 2016 has been filed before the NCLT, Kolkata Bench.
The hearing for the application is scheduled for October 4.
In the meanwhile, the Dalmia Bharat Group's resolution plan to acquire Birla Tyres has gained approval from creditors. Approximately, Rs 300 crore of Birla Tyres' debt is set to be repaid as part of the resolution.
As the legal proceedings continue, the fate of the Birla Tyre Workers Union's claims hangs in the balance. The unfolding developments are being closely watched by all stakeholders, with hopes that a fair resolution will be achieved, said Bal .