THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.1870 of 2011 (Dated : 20-12-2011) Between: M/s.A.P.Steels Limited (in liquidation) Rep. by the Official Liquidator High Court of A.P., Hyderabad. ...Applicant THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.1870 of 2011 ORDER: This application has been taken out by the Official Liquidator representing M/s. A.P.Steels Limited (in liquidation) under Section 460 of the Companies Act, 1956 read with Rules 9,11,275 and 290 of the Companies (Court) Rules, 1959 seeking permission of this Court to declare a dividend @ Rs.100/- (inclusive of percentage of interim dividends already paid) with interest to IDBI, IFCI, ICICI, LIC, Workmen & APIDC in respect of fixed assets realizations and to declare a dividend @ 57.09% in a rupee to Canara Bank, Andhra Bank, Syndicate Bank and UCO Bank in respect of fixed assets and movables realizations, after deducting interim payments already made aggregating to a sum of Rs.7,27,29,885/- and Rs.17,15,000/- as liquidation expenses to be paid to APIDC as detailed in the statement marked as Annexure- B and other allied reports. 2. This Court, by order dated 10-4-1996 made in R.C.C.No.2 of 1995 directed for winding up of M/s. A.P.Steels Limited and appointed the Official Liquidator attached to this Court as its liquidator. The Official Liquidator sold the assets of the company (in liquidation) and realized Rs.18,77,15,000/-. After obtaining permission from this Court, the Official Liquidator paid the 1st interim dividend and the 2nd interim dividend to the secured creditors. The Official Liquidator invited the claims against the company (in liquidation). The secured creditors as well as the sole workman submitted claim before the Official Liquidator. On adjudication of the claims, some of the secured creditors challenged the orders of adjudication and all the appeals ended in dismissal confirming the orders of adjudication passed by the Official Liquidator. The Official Liquidator invited claims against the company. The secured creditors and the workmen submitted their claims. After paying the 1st interim dividend and 2nd interim dividend, an amount of Rs.7,98,82,622.24 paise is available to the credit of the company (in liquidation). 3. The Official Liquidator proposed payment of dividend as set out in Annexure-B. Out of the amount available for dividend from Land & Buildings and plant and machinery, a sum of Rs.6,71,62,734/- is set apart towards 100% dividend and Rs.3,54,90,412/- towards interest to the first charge holders. After paying 100% of the admitted secured debt to workmen, APIDC and Secured creditors, IDBI, IFCI, ICICI and LIC with interest, a sum of Rs.6,60,30,811/- is available towards declaration of dividend to 2nd charge holders i.e., canara Bank, Andhra Bank, Syndicate Bank & UCO Bank. Hence, this application seeking permission to the Official Liquidator to declare a dividend @ 100% (inclusive of percentage of interim dividends already paid) with interest to IDBI, IFCI, ICICI, LIC, Workmen & APIDC in respect of fixed assets realizations, and to declare a dividend @57.095 in a rupee to Canara Bank, Andhra Bank, Syndicate Bank and UCO Bank in respect of fixed assets and movables realizations etcetera. 4. Heard learned counsel appearing for the Official Liquidator. The amounts to be paid to the secured creditors are as hereunder:- Secured creditor Total eligible dividend amount Total Dividend Paid Balance to be paid Canara Bank 34,435,183.50 33,745,995.19 689,188.31 Andhra Bank 47,508,425.96 46,557,588.81 950,837.15 Syndicate Bank 13,122,433.81 12,859,800.45 262,633.36 UCO Bank 7,229,089.39 7,084,405.86 144,683.53 5. In that view of the matter, the application is allowed (i) permitting the Official Liquidator to dispense with the adjudication of claim of other preferential/unsecured creditors whose claims are not likely to yield any dividend. (ii) The Official Liquidator is permitted to declare a dividend at the rate of 100% (inclusive of interim dividends already paid) with interest to IDBI,IFCI, ICICI, LIC, Workmen & APIDC in respect of fixed assets realizations, and to declare a dividend @ 57.09% in a rupee to Canara Bank, Andhra Bank, Syndicate Bank, and UCO Bank in respect of fixed assets and movables realizations after deducting interim payments already made aggregating to a sum of Rs.7,27,29,885/- and Rs.17,15,000/- as liquidation expenses to be paid to APIDC. (iii) The Official Liquidator is authorised 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) Publication of notice of dividend in newspapers is dispensed with. (v) The Official Liquidator is authorised to send individual notices of dividend in Form No.138. (vi) the Official Liquidator is authorised to transfer the u-paid dividend, if any, remaining in the dividend account, after expiry of six months period to Companies Liquidation account, in terms of Section 555 of the Companies Act, 1956. (viii) The Official Liquidator is authorised to pay dividend to any deceased creditor to his legal heirs upon production by such legal heirs, family member certificate or such other certificate as issued by the Revenue Authority instead of producing a succession certificate and also upon furnishing personal indemnity, in terms of Rule 280 of the Companies (Court) Rules, 1959. _____________________ B.SESHASAYANA REDDY, J Dt.20-12-2011 RAR