Allowed

M/s. Coromandel Pharmaceuticals Ltd. (In Liqn) v. The Deputy General Manager

Telangana HC16 Sept 2014COMPA/978/2014

Case brief

AI extract

What is this about?

The Court allowed the applicant's company application permitting the Official Liquidator to return expenses and declare dividends to various creditors, including the State Bank of India and APIDC, under the Companies Act, 1956.

What did the court decide?

Return of expenses, declaration and disbursement of dividends to preferential and unsecured creditors, authorization to open dividend account and transfer unpaid dividends.

M/s. Coromandel Pharmaceuticals Ltd. (In Liqn) Vs The Deputy… — Insurance | Telangana HC (2014)

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The Hon’ble Sri Justice C.V.Nagarjuna Reddy

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Company Application No.978 of 2014 in R.C.C.No.13 of 1998

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Dated 16.09.2014

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Between:

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M./.Coromandel Pharmaceuticals Ltd. (In Liqn.). Rep. by the Official Liquidator, High Court of Judicature at Hyderabad, For the State of Telangana and the State of Andhra Pradesh

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…Applicant

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And

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1.The Deputy General Manager, State Bank of India, Stressed Assets Management Branch (SAM Branch) Secunderabad and 5 others.

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…Respondents

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Counsel for the Applicant: Mr.M.Anil Kumar, Counsel for OL

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Counsel for respondent No.1: None Appeared

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Counsel for respondent No.2: Mr.P.V.Markandeyulu

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Counsel for respondent No.3: Mr.S.Sri Ram Reddy

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Counsel for respondent No.4: Mr.Y.Vivekananda for Mr.Y.N.Lohita

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Counsel for respondent Nos.5 & 6: None appeared

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The Court made the following:

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Order:

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This Company Application is filed for the following substantive reliefs:

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“i. Permit the Official Liquidator to return an amount of Rs.2,500/each to respondent Nos.1 to 3 herein aggregating to a total amount of Rs.7,500/- (2,500 x 3) toward reimbursement of initial expenses; ii. Permit the Official Liquidator to declare and disburse dividend @ 100 paise in a rupee to the Preferential Creditor such as R.17,47,394/- to Commercial Tax OfficerII, Somajiguda Circle, R-6 and to declare and disburse dividend @ 5.05651 paise in a rupee to the unsecured creditors, which works out to Rs.16,73,421/- to SBI, R-1; Rs.9,66,680/- to IIBI, R-2; Rs.35,90,884/to APIDC, R-3; Rs.32,71,373/- to APSFC, R-4 and Rs.3,30,609/- to M/s.TCI Finance Ltd., R-5, aggregating to a total amount of Rs.1,15,80,361/- as per Annexure-"F"; iii. Authorise Official Liquidator to open a separate dividend account in Punjab National Bank and pay the dividend to the Secured Creditors out of the said account, in terms of Rule 290 of the Companies (Court) Rules, 1959; iv. Dispense with the publication of notice of dividend in newspapers; v. Authorise the Official Liquidator to send

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individual notices of dividend in Form No. 138;

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vi. Authorise the Official Liquidator to fix the schedule for making payment;

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vii. Authorise the Official Liquidator to transfer the un-paid dividend, if any, remaining in the dividend account, after the expiry of the 6 (six) months period to Companies Liquidation Account, in terms of Section 555 of the Companies Act, 1956;

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viii. Authorise the Official liquidator to take all necessary actions and steps which are incidental to declaration and payment of dividend and to effectively implement the orders of this Hon'ble Court in that regard; and

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ix. Order that the costs of this application do come out of the Estate of the Company (In Liqn.).”

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Though notices were served, no one appeared for respondent Nos.1 and 5.

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Mr.P.V.Markandeyulu, learned Counsel for respondent No.2, and Mr.S.Sri Ram Reddy, learned Counsel for respondent No.3, submitted that they have no objection for granting the reliefs, as sought for by the applicant in this Application, which are reproduced hereinabove.

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A similar submission was made by Mr.Y.Vivekananda, learned Counsel representing

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Mr.Y.N.Lohita, learned Standing Counsel for respondent No.4, on 25-08-2014 itself.

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In view of the above, this Company Application is ordered as prayed for.

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______________________ (C.V.Nagarjuna Reddy, J) Dt: 16^th September, 2014 LUR

M/s. Coromandel Pharmaceuticals Ltd. (In Liqn) v. The Deputy General Manager

Case brief

What is this about?

What did the court decide?

M/s. Coromandel Pharmaceuticals Ltd. (In Liqn) v. The Deputy General Manager

Case brief

What is this about?

What did the court decide?

What the court decided

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