The Official Liquidator, v. Nil
Comp.A.No.25 of 2021 in M.SUNDAR, J Captioned Company Application i.e., Comp.A.No.25 of 2021 has been taken out by 'Official Liquidator attached to this Court' [hereinafter 'OL' for the sake of convenience and brevity] and Mr.Bavishetty Sridhar, learned 'Deputy Official Liquidator' [hereinafter 'Deputy OL' for the sake of convenience and brevity] is before me in this web hearing on a video conferencing platform.
2. Captioned Application has been taken out inter-alia under Sections 529, 530 and 555(1)(3) of 'The Companies Act, 1956' [hereinafter 'said Act' for the sake of convenience and clarity] read with Rules 9 & 11(b) of 'The Companies (Court) Rules, 1959' [hereinafter 'said Rules' for the sake of convenience and clarity].
3. 'Panclothing and Consolidated Company Limited' [hereinafter 'said company' for the sake of brevity and convenience] is the company, which has 1/7
gone into liquidation in captioned Company Petition i.e., 'C.P.No.143 of 2001' [hereinafter 'main CP' for the sake of brevity and convenience]. Captioned application has been taken out with a multi-limbed prayer, which as culled out from judges summons reads as follows: 'a) To take this report on record.
b) To permit the Official Liquidator to declare a further and final dividend @ 5% on the admitted amount to the 16 ordinary creditors which is calculated and arrived at Rs.26,48,990/- as stated in Para-18 of this report.
c) To Permit the Official Liquidator to dispense publication of notice as per Rule 276 of Companies (Court) Rules 1959 since the disbursement is to be made to 16 creditors only. d) To permit the Official Liquidator to open a separate dividend account with Punjab National Bank, NSC Bose Road, Chennai for Rs.26,48,990/- exclusively for disbursement to 16 claimants.
e) To permit the Official Liquidator to keep the dividend account open for six months from the date of opening and thereafter to transfer the unclaimed dividend if any to the account of Registrar of Companies, Tamilnadu, Chennai in terms of section 555(1) and (3) of the Companies Act, 1956.
f) To defray the expenses in connection with declaration/ disbursement of dividend from and out of the funds of the company in liquidation; and 2/7
g) To pass such order/orders of this Hon'ble court may deem fit and proper in the circumstances of the case and thus render justice.'
4. Learned Deputy OL, submits that a 'report of OL dated 08.01.2021' [hereinafter 'said report' for brevity] has been filed in support of captioned application. Adverting to said report, learned Deputy OL submits that the said company went into liquidation in main CP and the manner in which liquidation proceedings unfurled has been articulated in paragraph Nos.2 to 16 of the said report.
5. Be that as it may, fund position of said Company and disbursement that is now sought to be made qua creditors has been set out in paragraph Nos.17 & 18 of said report is his say and the said two paragraphs read as follows:
'17. Funds position of the company in liquidation as on 23.12.2020 is as follows:- Bank - Rs. 49,659.51 Investment - Rs.32,00,000.00 ---------------------- Total -Rs.32,49,659.51 ----------------------
18. That in view of the available funds to the credit of the 3/7
company in liquidation to a tune of Rs.31,01,576.51 and taking into consideration the fact that 100% payment to the Employees Provident Fund Organization and the preferential creditors and 85% of payment made to the ordinary creditors was already made, it is proposed to pay a further dividend @5% to 16 ordinary creditors of the company in liquidation. Accordingly the details of proposed dividend payment is as below:
S.
No Claim No.
Name and Address Nature of claim Amount claimed Amount Admitted 5% of the Admitted amount (Rs.) TCI Finance Limited, No.1-7-296, MG Road, Secunderabad - 500 003 As per the compromise decree passed 41,76,351 36,89,869 1,84,493 17 & Assistant commissioner of Income Tax, Company Circle V(1)No.121, IVth Floor, Main Building Nungambakkam High Road, Chennai-34 Tax dues 16,20,500 9,34,489 46,742 WALCHAND NAGAR INDUSTRIES LIMITED, No.153, Anna Salai, Chennai-34 Bills of Discounting 51,55,850 30,59,450 1,52,973 MAHARASHTRA APEX, CORPORATION LIMITED, SYNDICATE HOUSE, MANIPAL-1 Hire purchase 1,74,37,003 17,28,686 86,434 Wipro Finance Private Ltd, Wipro Centre No.410, 24th Hire Purchase 9,45,366 3,07,874 15,394 Cross, Bana Shankari Stage-2, Bangalore- 560070 The Investment Trust of India Limited, Mashkur Buildings, Krishna Road, Nungambakkam, Chennai - 2 Hire purchase 1,05,13,723 9,38,202 46,910 4/7
S.
No Claim No.
Name and Address Nature of claim Amount claimed Amount Admitted 5% of the Admitted amount (Rs.) Mukunda Industrial Finance Limited, Sankranthi Expert House, No.30, T.Mariappa Road, Jaya Nagar, Bangalore Hire purchase 43,66,349 7,33,000 36,650 Kriloskar Investment Finance Limited Unity Buildings, 'C' Block 2nd Hire purchase 33,80,376 4,29,277 21,464 Floor, J.C.Road, Bangalore-2 H.Kanniyalal, S/o Hirchand No.27, Chinna Thambi Street, Triplicane, Chennai-5.
Good Supplied 2,20,912 2,20,912 11,046 IND Bank Housing Limited, No.480, Anna Salai, IIIrd Floor, Nanganam, Chennai-35 Inter Corporate Deposits 2,47,22,179 65,05,823 3,25,291 Vijaya Vaikaria D-5, 3rd Inter Corporate Loan 12,00,000 12,00,000 60,000 Floor, Shanthi Apartments, No.21, 1st Cross Street, TTK Road, Alwarpet, Chennai - 600 018 Asman Financial Service Private Limited, D-5, 3rd Inter Corporate Loan 1,00,00,000 1,00,00,000 5,00,000 Floor, Shanti Apartments, No.21, Ist Cross Street, Alwarpet, Chennai-18.
B.Sankaran S/o Balasubramania Iyer, No.13/8, Mahadevan Street, West Mambalam, Chennai-33.
Goods Supplied 5,000 5,000 VLS Finance Limited, No.C-489, Defence Colony, Delhi - 110 024.
Hire purchase 1,31,16,497 28,35,446 1,41,772 Madras Credit & Investments, R.O. Flat No.115, Block-A, First Floor, Shivalaya Building, Door No.196, Ethiraj Salai, Egmore, Chennai - 105.
Lease charges 30,64,834 28,91,419 1,44,571 5/7
S.
No Claim No.
Name and Address Nature of claim Amount claimed Amount Admitted 5% of the Admitted amount (Rs.) Indian Bank Assets Recovery Management Branch, II Circle Office Buildings, Ground Floor, No.55, (Old No.24/2) Ethiraj Salai, Chennai - 600 008.
Loans 3,68,49,624 1,75,00,000 8,75,000 Total 13,67,74,564 5,29,79,447 26,48,990
6. This Court having perused the said report, having heard learned Deputy OL and having noticed the submission of learned Deputy OL that secured creditors have already been paid out, considers this to be a fit case for acceding to the prayer limbs (a) to (f) of the multi-limbed prayer. Captioned Application is allowed/ordered by acceding to prayer limbs (a) to (f). There shall be no order as to costs.
19.02.2021 mk/vsi 6/7
M.SUNDAR, J mk/vsi Com.A.No.25 of 2021 in 19.02.2021 7/7