THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.162 of 2010 in R.C.C.No.8 of 1991 In the matter of M/s.Nagarjuna Coated Tubes Limited (In liquidation) Dated:29th March, 2010 **** THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.162 of 2010 in R.C.C.No.8 of 1991 ORDER: This is an application filed by the Official Liquidator representing M/s. Nagarjuna Coated Tubes Limited (in liquidation) under Section 460 of the Companies Act, 1956 (for short, ‘the Act’) read with Rules 9 and 11 of the Companies (Court) Rules, 1959, seeking the following reliefs: i) declare 1st and final dividend totaling to Rs.2,60,72,089.47 ps. to 6 secured creditors as per Annexure-B by keeping LIC’s share aside; ii) Authorise Official Liquidator to open a separate dividend account in Punjab National Bank and pay the dividend to secured creditors out of the said account in terms of Rule 290 of the Companies (Court) Rules, 1959; iii) Dispense with the publication of notice of dividend in newspapers as the divided is sought to be paid to only six secured creditors; iv) Permit the Official Liquidator to issue individual notices to each of the secured creditors along with necessary Forms; v) Authorize Official Liquidator to transfer the un-paid dividend, if any, remaining in the dividend account, after the expiry of 6 (six) months period to Companies Liquidation Account, in terms of Section 555 of the Companies Act, 1956; vi) Authorize Official Liquidator to take all necessary actions and steps which are incidental to declaration and payment of dividend and to effectively implement the orders of this Hon’ble Court in that regard; vii) Order that the costs of this application do come out of the assets of the Company (in liquidation); and pass such further or other order or orders as this Hon’ble High Court may deem fit and proper.” 2. D.Vijaya Bhaskar, Official Liquidator attached to this Court has sworn to the affidavit filed in support of the application. As seen from the affidavit filed in support of the application, M/s. Nagarjuna Coated Tubes Limited is ordered to be wound-up on 03.04.1992 vide R.C.C.No.8 of 1991. As per the orders passed in C.A.No.1047 of 2008, this Court directed the Official Liquidator to file an application for disbursement of sale proceeds from out of the funds available in the company setting apart the proportionate entitlement of LIC vide docket order dated 19.11.2009. The Official Liquidator has sold the assets comprising land admeasuring Ac.40.38 cents in Survey Nos.205, 206 and207 situated at Isnapur village of Medak District along with structures, plant and machinery and current assets in public auction, and realised a sum of Rs.5.80 crores under one lot. The sale was confirmed by this Court vide C.A.No.1285 of 2004. On receipt of the sale proceeds and on obtaining orders from this Court, interim payments were made to the secured creditors to a tune of Rs.3,83,75,000/-. The Official Liquidator vide publication dated 29.12.2008 invited claims from the creditors of the company fixing the last date for submission as 25.01.2009. However, no claims were received in response to the said advertisement. The secured creditors of the company are IDBI, IFCI, ICICI, State Bank of India, Andhra Bank, Central Bank of India and LIC of India. IDBI and Central Bank of India filed their claim on 06.02.2009 and 27.01.2009 respectively and also produced the orders of this Court granting relief under Rule 177. Accordingly, the Official Liquidator adjudicated the claims of the IDBI as well as the other secured creditors issuing individual Form No.69 admitting/rejecting the following amounts as shown hereunder: Sl. No. N a m e of the Secured Creditor Amount Claimed Amount Admitted Amount Rejected 01. S t a t e Bank of India 15,72,04,379.75 12,27,99,189/- 3,44,05,190.75 02. Andhra Bank 5,69,63,361.71 5,54,47,083.59 15,14,278.40 03. IFCI 9,39,04,876.00 2,89,93,906.00 6,49,10,970.00 04. I C I C I (Kotak Mahindra Bank Ltd.) 2,48,46,037.00 2,30,87,995.00 17,58,042.00 05. IDBI 4,46,14,400.00 4,40,38,159.00 5,76,241.00 06. Central Bank of India 2,60,04,559.08 1,15,28,887.85 1,44,75,671.23 Total 40,35,37,613.54 28,58,95,220.44 11,76,40,393.38 This Court by order dated 19.11.2009 passed in C.A.No.1047 of 2008, directed the Official Liquidator to file an application for distribution of dividends keeping aside LIC’s portion of the eligible dividend pending receipt of relief under Rule 177 of the Companies (Court) Rules, 1959. The Official Liquidator has made out a separate statement for calculating the amount available for distribution of dividend to the eligible secured creditors, who are entitled, in Annexure-B. A sum of Rs.75,24,828.20 ps. is set apart towards the dividend of LIC. The balance amount to be disbursed is Rs.2,60,72,089.47 ps. as 1st and final dividend to all the eligible secured creditors (6 in number). 3. Heard learned counsel appearing for the Official Liquidator and learned counsel appearing for the 5th respondent and perused the material brought on record. 4. There is no dispute that there are seven secured creditors of the applicant Company. An amount of Rs.75,24,828.20 ps. has been kept aside to meet the claim of the LIC of India. 5. In that view of the matter, the Company Application is allowed declaring the 1st and final dividend totaling to Rs.2,60,72,089.47 ps. to six secured creditors as per Annexure-B by keeping the LIC of India’s share aside; and authorizing the Official Liquidator to open a separate dividend account in Punjab National Bank and pay the dividend to secured creditors out of the said account, in terms of Rule 290 of the Companies (Court) Rules, 1959. Publication of notice of dividend in newspapers is dispensed with. The Official Liquidator is permitted to issue individual notices to each of the secured creditors along with necessary forms. No costs. ______________________ B.SESHASAYANA REDDY, J. Date:29th March, 2010. cs THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.162 of 2010 in R.C.C.No.8 of 1991 Dated:29th March, 2010