In Brief
Maharashtra State Co-operative Bank appealed against an order directing it to satisfy employee salary claims of Rs. 13.89 crore from sale proceeds held in trust. The bank argued it had no employer-employee relationship with the workers, the society was not a company, and employees could not claim priority without a statutory charge. The Court held the bank was bound by its undertaking in the sale letter to satisfy employees' dues from the proceeds, and must distribute the funds according to the sale contract terms. The appeal was disposed of, clarifying that SARFAESI Act priority requires statutory protection for creditors' claims."
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