Binny Brass, Workers Clash Over Insurance Moolah

The row between the management and labour unions over the century-old Buckingham and Carnatic Mills took a new turn with the aggrieved creditors and the workers union fighting it out for a share in the money released by insurance companies.

Indian Bank has recently filed a special leave petition in the Supreme Court asking that status quo should be maintained with regard to the second installment of Rs 5 crore insurance money Buckingham and Carnatic Mills has just received.

Binny, the manager of the mills, according to union sources, owes as much as Rs 30 crore to Indian Bank.

While Indian Bank claims that since the machinery and other materials are hypothecated to the bank any insurance claim made and settled against such assets should go to it.

 

However, the labour union and the state government do not agree with this stand.

Both the union and the Tamil Nadu government have filed separate counters in the Supreme court.

Their argument is that the insurance money should be used to revive the mill.

Union leaders also point out that when the Indian Bank filed a similar case in the Madras High Court, the case was dismissed by the court.

Though the Supreme Court has passed an interim order to maintain status quo, with the court on vacation the money already deposited with the bank will remain freezed for at least a month or until the court gives its verdict.

Already, it is said, of the of Rs 5.54 crore paid by the insurance company, Rs 5 crore has

been utilised to settle a portion of the credit Binny owes to its creditors.

The remaining balance of Rs 54 lakh was used to settle labour claims.

The Rs 5 crore now under dispute forms the second installment of the companys insurance money.

Insurance claims were filed when the mill, located in Perambur, was flooded due to heavy unseasonable rains in June last year.

In all, the total claim amountof the company is reported to be Rs 60 crore.

Meanwhile, the mill's insurers have also sought an extension of the last date for payment of final settlement.

They have asked that the date be extended from April 15 to May 31.

The workers have also asked the state government to come to the rescue of the mill by making an advance payment of Rs 10 crore.

The advance payment will be settled against uniform materials the mill regularly supplies to the state social welfare and police departments.

A gate meeting was also held by the employees on Saturday to protest against non-payment of salary for April.

Salaries for March were also paid only after top state cabinet members intervened in the matter on behalf of the labour unions, it is said.