Allowed

The Official Liquidator v. -

Telangana HC6 Jan 2012COMPA/7/2012

Case brief

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What is this about?

The Court allowed a company application by the Official Liquidator of M/s. Tamanna Chit Fund seeking permission to declare dividends to preferential and unsecured creditors and to dispense with newspaper publication, authorizing alternative measures for notification and payment.

What did the court decide?

Permission granted to declare dividend at 100% to Income Tax and 88.46% to unsecured creditors; newspaper publication dispensed with; individual notices authorized; unutilized amounts to be transferre

The Official Liquidator Vs - — Specific Performance | Telangana HC (2012)

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THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY

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Company Application No.7 of 2012

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(Dated : 06-01-2012)

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Between:

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The Official Liquidator High Court of Andhra Pradesh, Hyderabad.

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….Applicant

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THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY

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Company Application No.7 of 2012

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ORDER:

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This company application has been taken out under Section 457(1)(e) and 460 (4) of the Companies Act, 1956 read with Rules 9, 11, 167, 275, 276 and 290 of the Companies (Court) Rules, 1959, by the Official Liquidator representing M/s.Tamanna Chit Fund (P) Limited (in liquidation) seeking permission to declare a dividend @ 84.46% in a rupee of admitted amounts in respect of 34 preferential/unsecured creditors/ordinary creditors as set out in Annexure-B and to dispense with the publication of notice of declaration of dividend in newspapers and other allied reliefs.

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2. This Court, by order dated 13-7-2001 made in Company Petition No.32 of 2000, directed winding up of M/s. Tamanna Chit Fund (P) Limited (in liquidation) and appointed the Official Liquidator attached to this Court as its liquidator. The Official Liquidator took charge of the affairs of the company and realized the amounts due to the company (in liquidation). The Official Liquidator invited the claims from the creditors of the company, by publishing a notice in “Deccan Chronicle” and “Andhra Jyothi”. In response to the said notice, the Official Liquidator received claims from 35 creditors of the company (in liquidation) and adjudicated their claims and issued orders in Form No.69/70. Of the 35 claimants, one claim relatable to the Income Tax authority has been admitted as preferential debt. A statement of

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proposed dividend is marked as Annexure-B. The preferential debt of Income Tax department to a tune of Rs.7,51,546/- can be met fully. Whereas the other claims can be met by declaring a dividend at 88.26% in a rupee. Hence, this application seeking the relief stated supra.

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3. Heard learned counsel appearing for the applicant and perused the affidavit filed in support of the application and annexures thereto.

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4. As could be seen from Annexure-B, the total amount available for declaration of dividend is Rs.38,54,114.98 paise. The amount due to the income tax department falls under the category of preferential payment, as provided under Section 530 of the Companies Act. There is enough amount in the companies account to meet the preferential debt in full. After meeting the preferential debt in full, an amount of Rs.31,02,568.98 paise is still available. This amount is to be distributed among the 34 unsecured creditors. Each of the unsecured creditors will get a dividend of 88.46% in a rupee.

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5. Accordingly, the application is ordered directing the Official Liquidator under Rule 275 of the Companies (Court) Rules, 1959 to declare dividend at the rate of 100% in a rupee to the income tax department and at 88.46% in a rupee in respect of 34 unsecured creditors. The publication of notice of declaration of dividend in newspapers is dispensed with. The Official Liquidator is authorized to send individual notices of dividend in Form No.138 along with Form No.139. The Official Liquidator has to open a dividend account with Punjab National Bank, Bank Street, Koti, Hyderabad and keep in force for a period of six months. The Official Liquidator is permitted to transfer the dividend amounts which remain unpaid, after

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six months to the companies liquidation account in terms of Section 555 of the Companies Act. The Official Liquidator is authorized to pay dividend due to any deceased creditor or to his legal heirs upon production of such legal heir or a family member certificate or such competent authority, instead of production of a succession certificate and also upon furnishing personal indemnity, in terms of Rule 280 of the Companies (Court) Rules, 1959. The Official Liquidator is permitted to take all necessary actions and steps which are incidental to declaration and payment of dividend and to effectively implement the orders of this Court in that regard.

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_____________________ B.SESHASAYANA REDDY, J

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Dt.06-01-2012 RAR

The Official Liquidator v. -

Case brief

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The Official Liquidator v. -

Case brief

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