A Division Bench of the Kerala High Court has proposed winding up of the Ernakulam District Wholesale Cooperative Consumer Store Limited.
The Bench comprising Justice C.N. Ramachandran Nair and Justice P.S. Gopinathan directed the Joint Registrar of Cooperative Societies (General) to file a report within a week on the present state of affairs of the store and stating whether there could be any objection to the proposed closure from any quarters.
The court observed that the society was completely insolvent as much as it had not been able to clear gratuity dues due to its employees.
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The government pleader submitted that the society had a liability of over Rs. 3.50 crores due to the district cooperative bank.
The contempt petition was filed by as many as 12 retired employees against the refusal of the society to pay their gratuity arrears despite the High Court directive.