PUNJAB STATE INDUSTRIAL DEV. CORPN. LTD. vs PNFC KARAMCHARI SANGH

The Supreme Court held that the Company Court has jurisdiction under Section 446(2)(d) of the Companies Act, 1956 to direct the Punjab State Industrial Development Corporation (PSIDC) to release funds for the payment of wages to employees of Punjab National Fertiliser and Chemical Limited (PNFC), despite PSIDC's claims of financial incapacity and lack of direct employment relationship with the workers. The Court affirmed the High Court's dismissal of the appeal, emphasizing the workers' entitlement to wages until the winding up of the company, as supported by the Chief Minister's note. The ruling reinforces the priority of employee dues as per Section 529A of the Companies Act.