1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION jmi COMPANY APPLICATION NO. 1136 OF 2009 IN COMPANY PETITION NO. 510 OF 1989. Shri Rajendra Vinayak Shirgaokar & Anr. ..Applicants. v/s. The Official Liquidator of Shakti Alloy Steels Ltd. & Ors. ..Respondents. .... Mr. U.P. Bobde, for Applicant. Official Liquidator, present. .... CORAM : S.J. KATHAWALLA, J. DATE : 28TH JANUARY 2010. P.C. By this application, the applicants who are the Ex- Directors of the company in liquidation are seeking an order/direction against the Official Liquidator to release in favour of the applicant no.1 an amount of Rs.1.35 crores (out of sale proceeds of Rs.2.4 crores) together with interest accrued thereon, lying invested in fixed deposit receipts with the Official Liquidator. 2. According to the applicants, pursuant to the BIFR scheme, the secured creditors i.e. respondent nos. 2, 3 and 4 had advanced a loan to the company. Respondent nos. 2, 3 and 4 had 2 thereafter initiated proceedings against the company before the Debt Recovery Tribunal, Mumbai for recovery of the sums lent and advanced by the respondent nos. 2, 3 and 4 to the company. The applicant no.1 settled the entire claim by entering into a one time settlement (OTS) with all the secured creditors. In view thereof, the proceedings initiated by the secured creditors against the company have been withdrawn. The applicant no.1 has now claimed this amount from the Official Liquidator on the basis of his having settled the claims of respondent nos. 2, 3 and 4 (secured creditors) as set out in paragraphs 6 to 9 of the affidavit in support of the application. The claim of the applicants is not disputed by the Official Liquidator. However, the Official Liquidator has submitted that the Official Liquidator has invited claims of workers/ creditors of the company in liquidation on or before 15th March 2010. The Official Liquidator has submitted that he has no objection if the said amount is paid to the applicant no.1 upon him furnishing a bank guarantee of a nationalised bank. 3. In view thereof, the following order is passed :- (i) The Official Liquidator shall pay an amount of Rs. 1.35 crores to the applicant no.1 after the applicant no.1 furnishes 3 a bank guarantee (of a nationalised bank) guaranteeing to pay the Official Liquidator the said amount alongwith interest thereon as and when ordered by this Court or any other Court. The bank guarantee shall initially be for a period of one year and shall be renewed from time to time until further orders. (ii) The company application is accordingly, disposed of. [ S.J.KATHAWALLA, J. ]