M/S Love And Concern v. K.Dhananjayan And 9 Others

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 26-09-2025

CORAM

THE HONOURABLE MR JUSTICE N. ANAND VENKATESH AND IP NO. 11 OF 2019

1. Kumbakonam Mutual Benefit Fund Nidhi Limited Dharmaraja Koil Street, Saidapet, Opp To VGP Office, Chennai - 600 015. Rep. By Its Manager, V.Sridhar 2.Kumbakonam Mutual Benefit Fund Nidhi Limited No.1, Nachiyappan Street, Mylapore, Chennai-600 004.

Rep. By Its Manager R.Uma Sankar.

3.Kumbakonam Mutual Benefit Fund Nidhi Limited No.10, Doraisamy Road, T.Nagar Branch, Chennai-600 017.

Rep. By Its Manager G.Mahendran.

Applicant(s) Vs

1. Syed Hifzur Rahman Biyabani S/o.Syed Ataul Rahman Biyabani, No.49/10, Easwaran Koil Street, West Mambalam, Chennai-600 003.

2.The Official Assignee High Court, Madras.

Respondent(s) PRAYER To permit Applicants 1 to 3 (KMBF) to withhold the payment of dividends to the erring shareholders, the details of whom are more fully described in the Schedule to the Judges Summons, in light of the criminal complaints filed against them and till the time the Applicants are parties to the proceedings under the present Insolvency Petition No.11 of 2019.

For Applicant(s):

Mr.M.S.Krishnan Senior Counsel for Mr.C.Arun Kumar For Respondent:

Mr.Gowtham, Officiial Assisgnee for R2

ORDER

This application has been filed to permit the applicant to withhold the payment of dividends to the erring shareholders. 2.

It is seen from the earlier order passed by this Court on 02.01.2024 wherein this Court had directed the applicant not to disburse the dividend to the shareholders. According to the learned Senior counsel appearing on behalf of the applicant, this order confines itself only to the dividend declared for the year 2022 - 2023

at the Annual General meeting of the applicant held on 29.09.2023. The learned Senior counsel submitted that the order passed by this Court on 02.01.2024 must be extended for the subsequent years also, since the applicant has to comply with certain statutory requirements.

3.

Considering the earlier order passed by this Court on 02.01.2024, it is made clear that the said order will extend for all the subsequent years also, until further orders are passed by this Court. 4.

This application is disposed of in the above terms. No costs.

26-09-2025 rka Index:Yes/No Speaking/Non-speaking order Internet:Yes

To 1.Syed Hifzur Rahman Biyabani S/o.Syed Ataul Rahman Biyabani, No.49/10, Easwaran Koil Street, West Mambalam, Chennai-600 003.

2.The Official Assignee High Court, Madras.

N.ANAND VENKATESH J.

rka APPLN No. 250 of AND IP NO. 11 OF 2019 26-09-2025