MUHAMMAD IQBAL versus SAMPAK PAPER AND BOARD MILLS
Section 5 405 Constitution of Pakistan (1973), Article 185 (3) Procedure for Setting Claims of Company Liabilities Proposed Scheme assets Approved by the Company Judge for the distribution of the proceeds from the sale of assets. And was paid by the government levidator to the former employees. The company ploy taken by former employees of the company was that the order regarding the scheme for distribution of sales revenue should have been a detailed order and satisfied the total claims of the ex-employees of the company after paying the tax. Should have been recognized even by secured creditors. And the first charge holders could not be satisfied with the proceeds of the sale of the assets of the company. Thus the former employees of the company were considered as preferential claimants and according to the law, the money was distributed accordingly and their claims were properly satisfied. No detailed order was required for distribution. The company was ordered to be injured by a detailed order but, after that, it was the duty of the official levyholder to obtain claims from the lenders, examine the claims and The judge seeking the execution of the final scheme for distribution shall submit its recommendation to the judge; No one, including the applicant, raised objections to the proposed distribution scheme, so it was the Company Judge and the Company, at the end, directed that the secured creditors approved by the Company Judge to distribute the sale money to the lenders. The order to distribute the money was justified and the Supreme Court refused to intervene in the same appeal.
