THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Applications No.1967 and 1968 of 2011 29th December, 2011 Between :- C.A.No.1967 of 2011 M/s.Guardian Papers Limited (in Liqn) Rep.by the Official Liquidator, High Court of Andhra Pradesh, Hyderabad .. Applicant C.A.No.1968 of 2011 M/s.Guardian Papers Limited (in Liqn) Rep.by the Official Liquidator, High Court of Andhra Pradesh, Hyderabad .. Applicant THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Applications No.1967 and 1968 of 2011 COMMON ORDER:- These two applications have been filed by the Official Liquidator representing M/s.Guardian Papers Limited (in Liqn) to declare an amount of Rs.95,92,123/- as final dividend to the secured creditors, an amount of Rs.2,58,704/- @ 100% to the preferential creditors and a sum of Rs.32,48,565/- @ 5.7822% to the unsecured creditors and for other allied reliefs. This Court by an order dated 7-11-1989 made in C.P.No.3 of 1986 directed for winding up of M/s.Guardian Papers Limited and appointed the Official Liquidator attached to this Court as its Liquidator. The Official Liquidator took possession of the assets of the Company (in Liqn) and sold the land admeasuring Ac.53.85 cents, building Plant & Machinery for a total consideration of Rs.2.30,01,000/- . The sale came to be confirmed by this Court as per orders dated 10- 7-2001 made in C.A.No.375 of 2001. This Court directed the Official Liquidator as per order dated 31-1-2001 made in C.A.No.44 of 2002 to invite the claims from the creditors of the Company (in Liqn). The Official Liquidator received claims from IDBI, IFCI, ICICI, Commercial Tax Department, Gram Panchayat, ESI, Rosin House. The claims of the creditors came to be adjudicated by the Official Liquidator by issuing Form No.69/70. The three secured creditors namely, IDBI, IFCI and ICICI have a charge on the landed property of the Company only to an extent of Ac.29.38 cents and buildings with Plant & Machinery erected thereon. The balance of land admeasuring Ac.24.47 cents is freehold and is outside the purview of the properties mortgaged to the financial institutions. Out of the total sum of Rs.3,19,03,099-70 P.S. realized out of the sale of assets, a sum of Rs.2,83,95,830-91 P.S., is made available to the mortgaged secured creditors. ICICI Bank, one of the secured creditors of the Company (in Liqn), had filed C.A.No.17 of 2003 seeking direction to the Official Liquidator to disburse the amount. This Court by order dated 7-8-2002 directed the Official Liquidator to disburse a sum of Rs.38,31,416/- to ICICI Bank. Accordingly, the Official Liquidator disbursed a sum of Rs.97,85,311-16 P.S., to IDBI, Rs.45,15,595-26 P.S., to IFCI and Rs.45,02,801-78 to ICICI towards interim dividend on 27-3-2003 and 28-3-2011. The Official Liquidator filed Form No.71 together with proof of claims and the memorandum of admission/rejection of claims. As per Rule 169, upon filing of the certificate in Form No.71, the Registrar shall notify the filing thereon on the notice board along with the certificate and the list of creditors as settled thereto. As there is a delay in filing Form No.71, a separate application being C.A.No.1678 of 2011 has been moved and the said application came to be allowed on 18-11-2011. Out of the amount now available to the credit of the Company (in Liqn), the Official Liquidator intends to disburse an amount of 95,92,123/- as final dividend @ 36.44% paise in a rupee after adjusting the amount of dividend earlier disbursed to the secured creditors. Further an amount of Rs.2,58,704/- @ 100% to the preferential creditor and a sum of Rs.32,48,565/- @ 5.7822% to the unsecured creditors. Hence these applications. Heard learned Counsel appearing for the applicant and perused the applications and Annexures thereto. The amount available with the Official Liquidator are indicated in the Annexures. Initially interim dividends were declared to the secured creditors. The amounts to be declared as dividends have been stated supra. Since the claims of the creditors have been adjudicated, there cannot be any impediment to take Form No.71 on record. Accordingly, the Company Applications are allowed taking the certificate in Form No.71 filed as Annexure-A on record. Registry is directed to notify the said Form No.71 in the Notice Board in terms of Rule 169 of the Companies (Court) Rules, 1959. The Official Liquidator is permitted to declare an amount of Rs.95,92,123/- as final dividend at 36.44 paise in a rupee after adjusting the dividend amount disbursed earlier to the secured creditors, an amount of Rs.2,58,704/- at 100% to the preferential creditor and a sum of Rs.32,48,565/- at 5.7822% to the unsecured creditors, as detailed in the statement marked as Annexure-B. The Official Liquidator is authorized to open a separate dividend account in Punjab National Bank and pay the dividend to the secured creditors and others out of the said account in terms of Rule 290 lot Companies (Court) Rules, 1959. Publication of notice 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 is authorized to pay the dividend due to any deceased creditor to his legal heirs upon production by such legal heirs, family member certificate or such other certificate instead of producing a Succession Certificate and also upon furnishing personal indemnity, in terms of Rule 280 of the Companies (Court) Rules, 1959. The Official Liquidator is authorized to transfer the unpaid dividend, if any, remaining in the dividend account, after the expiry of six months period to Companies Liquidation Account in terms of Section 555 of the Companies Act, 1956. Accordingly, the Company Applications are ordered. ________________________ B.Seshasayana Reddy, J 29th December, 2011 smr