IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 22.03.2011 CORAM: THE HONOURABLE MR.JUSTICE VINOD K.SHARMA C.A.No.1545 to 1547 of 2010 in C.P.No.30 of 1963 VINOD K.SHARMA, J. This order shall dispose of C.A.Nos.1545 to 1547 of 2010 in C.P.No.30 of 1963. 2 The applicant in all these applications have prayed for setting aside the order of adjudication passed by the Official Liquidator on the claim petition filed by the petitioner as unsecured creditor. 3 The case set up by the applicant is that the father of the applicant being director of the Company in liquidation had advanced a loan amounting to Rs.6,78,940/- (Rupees six lakhs seventy eight thousand nine hundred and forty only) which was repayable with interest @ 12% p.a. 4 It is also the case of the applicant that the Company was paying interest on the loan till the time it was ordered to be wound up. The loan due to the father of the applicant was duly depicted in the balance sheet carrying interest @ 12% p.a. The applicant herein filed Company petition No.30 of 1963 on failure of the Company to pay the admitted liability. The petition was allowed and the company was ordered to be wound up. 5 The Official Liquidator attached to this Court was appointed as Liquidator of the Company. The Official Liquidator has adjudicated the claim and passed the following order: OFFICE OF THE OFFICIAL LIQUIDATOR, HIGH COURT, MADRAS Kuralagam, Block 1, 1st Floor, Esplanade, Chennai 108. Form No.138 of the Companies (court) Rules, 1959 UNDER CERTIFICATE OF POSTING IN THE HIGH COURT OF JUDICATURE AT MADRAS ORIGINAL JURISDICTION In the matter of the Companies Act, 1956 and In the matter of M/s.Golden Films Private Limited (in liquidation) Company Petition No.30/1963 Notice of Dividend to Preferential/Ordinary Creditor First and final Dividend @ 100 Paise in a rupee to Preferential/Ordinary Creditors admitted under section 529, 529-A of the Companies Act, 1956. To Smt. K.Santha Bhai, (On behalf of K.Padma, K.Jaya and K.Uma) New No.1 (Old No.12, IInd main road, AVM Avenue, Virugambakkam, Chennai 92. Take notice that a first dividend @ 100 paise in a rupee to the preferential/Ordinary Creditors has been declared. The amount payable to you is Rs3,28,194/- (Rupees three lakhs twenty eight thousand one hundred and ninety four only) and the same will be payable at my office on any working days subject to condition that the notice of admission/rejection dt.12/7/6. Upon applying for payment, this notice must be produced with any bills of exchange, promissory notes or any other negotiable securities held by you. If you desire the dividend to be paid to some other person, you may sign and lodge with the Official Liquidator an authority in the prescribed form (Form No.139). If you do not attend personally you must fill up and sign the enclosed forms of receipt of authority. Dated at Chennai this 21st day of August, 2006. sd/- Asst. Official Liquidator, High Court, Madras. 6 The contention of the learned counsel for the appellant is that the impugned order is totally a non speaking order, and does not disclose the reason for arriving at an amount of Rs.3,28,194/- (Rupees three lakhs twenty eight thousand one hundred and ninety four only) against the claim of Rs.5,15,000/- (Rupees five lakhs fifteen thousand only) which was not only depicted in the balance sheet but also taken to be admitted liability of the company, by this Court, while ordering winding up of the company. 7 There is force in the contention of the learned counsel for the applicant. It is well settled law that authority exercising quashing of judicial order is required to pass detailed speaking order giving reasons for coming to the conclusion to enable the higher Court to test the order as to whether it is in consonance with law or not. 8 The impugned order therefore does not stand test of settled law as no reasons have been given for coming to the conclusion that the applicants were only entitled to a sum of Rs.3,28,000/- (Rupees three lakhs twenty eight thousand only). The Official Liquidator has also failed to determine the status of the applicants being legal representative of Shri V.Krishnasami Naidu. 9 Consequently, these applications are allowed. Impugned order is set aside. The case is remitted back to the Official Liquidator to determine the claim in accordance with law by passing detailed speaking order. 10 Parties through counsel are directed to appear before the Official Liquidator on 5.4.2011 at 10.00 a.m. The Official Liquidator shall give opportunity to the applicants to prove their claim and thereafter pass detailed speaking order giving reasons for acceptance or rejection thereof within one month of the receipt of certified copy of this order. No costs. 22.03.2011 vaan Index: Yes/No Internet: Yes/No VINOD K.SHARMA, J. vaan C.A.No.1545 to 1547 of 2010 in C.P.No.30 of 1963 22.03.2011