THE HON’BLE SRI JUSTICE G.BHAVANI PRASAD COMPANY APPLICATION Nos.233, 234 and 235 OF 2010 IN COMPANY APPLICATION No.1135 OF 2009 IN COMPANY PETITION No.23 OF 1988 Dated:27.09.2010 Between: Canara Bank, Asset Recovery Management Branch No.5-9-22/14/C &d 1st Floor, Damayanthi Chambers, Adarshnagar, Hyderabad, rep., by its Chief Manager .. Applicant And M/s.Satya Steel Strips Limited (In liqn.) Rep., by the Official Liquidator, High Court of Andhra Pradesh, Hyderabad .. Respondent COMMON ORDER: Heard Sri M.Anil Kumar, learned counsel for the Official Liquidator, and Sri Deepak Bhattacharjee, learned counsel for the applicant. The Official Liquidator filed his report in C.A.No.235 of 2010 stating that any release of the proportionate share to the applicant bank can be considered only after adjudication and it was stated that only two claims from Canara Bank and State Bank of India were received as secured creditors of the company and the claim of the applicant in Form No.66 for Rs.2,21,65,616.22 ps. as due, as on the date of the winding up order, is under process of adjudication due to which the application is premature. The request in C.A.No.234 of 2010 is also for payment of publication charges out of the sale proceeds with interest at 17.75% per annum till the date of payment and C.A.No.233 of 2010 is for release of the proportionate share of the applicant bank in the sale proceeds of Acs.5.30 guntas in Survey No.296 of Kalakkal standing in the name of the guarantor in both the applications. The applicant has stated that the relevant affidavit along with the documents was submitted before the Official Liquidator for determination of the proof of the debt. Such determination of the proof of the debt has not yet taken place, according to the learned counsel for the Official Liquidator. The learned counsel for the Official Liquidator also brought to notice the order this Court in C.A.No.2109 of 2007 in R.C.C.No.5 of 1993, dated 19.12.2007, wherein the learned Judge ruled that any practice of the Court cannot ignore Sections 529, 529-A and 520 of the Companies Act, 1956 and when the liquidator is adjudicating the claims made by the secured creditors, other creditors and workmen, the Court cannot and should not make orders directing the Official Liquidator to make interim payments. Under the circumstances, all the three applications have to be considered as premature and any further steps to be taken by the applicant should await the process of adjudication by the Official Liquidator. Therefore, while dismissing these applications as premature, the Official Liquidator is directed to expedite the process of adjudication. ___________________ G. BHAVANI PRASAD, J 27.09.2010 KH