IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD FRIDAY,THE TWENTY NINTH DAY OF JULY TWO THOUSAND AND TWENTY TWO PRESENT COMPANY APPLICATION NO. 581 OF 2021 IN COMPANY PETITION NO. 32 OF 2OO5 Between: M/s.Kakatiya Agritech Ltd., (ln Liqn), Rep. by its Official Liquidator, Attached to the High Court for the State of Telangana. ...APPLICANT AND 1. The Branch Manager , State Bank of Hyderabad, Commercial Branch, Suryalok Complex, Secunderabad -3 2. The Branch Manager, Telangana State Financial Corporation (APSFC) Boyawada, Nalgonda - 508 001. 3. Sri. M.Jaya Rami Reddy, S/o. Sri.Rami Reddy, Rl/o. H.No.LlG-499, Bharatnagar Colony, Sanathnagar, Hyderabad. ...RESPONDENTS Company Application Under Section 481 & 550 of the Companies Act, 1956 Read withy Rule I , 281 & 282 ot the Companies ( Court ) Rules 1959 for dissolution of the Company praying that this Hon'ble Court may be pleased to i) form an opinion that the Liquidator cannot proceed with the winding up and that it is just and reasonable in the circumstances of the case to order for the dissolution of the company. ii) permit the Official Liquidator to return the Rs.21,00,0001 to APSFC deposited by them as no workmen claim received in this office. iii) permit the Official Liquidator to return the initial expenses of Rs. 15,000/- to the petitioner for winding up, and in the event of the petitioner being not traceable, the Official Liquidator may be permitted to transfer the said amount to the Companies Liquidation Account. iv) dispense with the service of notice on the Respondents herein as Official Liquidator has already sought No Objection Certificate from all the Respondents above as detailed in Para no.'1 0. v) half yearly accounts of the companys liquidation have been filed up to 3110312021 and Half Yearly Accounts for the period from 01-14- 2021 to THE HONOURABLE SRI JUSTICE T.VINOD KUMAR 3010512021 at d 0111012021 to 0211212021 are being filt;d along with this application, b| l3kgn on record. vi) dispense witl' the auditing of half yearly accounts f:r the period from 0110412021 tc 3010912021 and 0111012021 to 02111!12021 as there are only few trans actions. vii) dispense with the filing of the final/ annual accountr ol the company in view of the fili .tg of the audited / unaudited half yearly accounts regularly in the compar y in liquidation. viii) dispense witt the payment of Central Government 'er: in view of non existence anc non realization of any asset of the co rp::ny based on the Statemenl of \ffairs ix) order that M/;. Kakatiya Agritech Limited be dissolv,-.cl with effect from the date of th, r order. x) Permit the C fficial Liquidator to transfer the balercr,: amount to the Company's l.iquidation Account, after deducting tlre Liquidation / incidental exf enses, Auditor's fees and etc., xi) Permit the ( tfficial Liquidator to dispose of / destnry the books of accounts anc records of the company any day afler expiry of 5 (five) years from th r date of order of the dissolution of the ccrnpany xii) permit the Of icial Liquidator to meet the cost of this ap,plication and any other inciden'al expenses be met from out of the fr,rds of the company to its credit, a rd This Applical on coming on for orders and upon .eadinq the Judge's Summons and tl re affidavit dated 06-12-2021 and fileC by Sri V. Santoshi Jagirdar, Official Liquidator ( l/c) in support of the Compar y Application and upon hearing th : arguments of Sri J. Srinadh Redciy, Counsel for the Official Liquidatc' for the Applicant and none appeared f cr the respondents. The Gourt made the fc llowing: ORDER HONOURABLE SRI JUSTICB I"VINOD KUMAR C0MPA No.581 ol202l In This Application is filed undel Section 481 of the Companies Act, 1956 (for short'the Act') read with Rule 9, 281 and 282 of the Companies (Court) Rules, 1959 (for short 'the Rules'). 2. The Official Liquidator prays the following reliefs: "(i) to Jbrm an opinion that the liquidator cannot proceed wilh rhe winding up and that it is jusr and reasonable in lhe circumstances of the case to order Jbr the dissolution of the company; (iil to permit lhe Official Liquidator to return Rs.21,00,000/- to APSFC deposiled by them os no u,orkmen claim received in the oflice; (iii) permit the Ofiicial Liquidator to return the initial expenses of Rs.1 5,000/- to the petitioner for winding up, and in lhe evenl ol the petitioner being not traceable, the Official Liquidator may be permitted to transfer the said amounl to the Companies Liquidation Accounl. (iv) to dispense with the service of notice on the respondents herein as Oflicial Liquidator has sought No Objection Certificate Jrom all the responclents as detailetl in para- l0: ' ./. Company Petition No.32 of 2005 ORDER: 2 (t) Half l'early Accounts of lhe company in 'iq,uidation hav beenfiled up to 3l-03-2021 and Half l'e,ult attdited aca unts for lhe period from 01-04-202 I to 30-(tl'-,102 I and 01-t0-2021 to 02-12-2021 are being filed aloitl| ,t,ith this app, icolion, be taken on record: 6i) :lispense witlt the auditing of half yeorll, uccounts for the 1'eriods Jrom 01 -04-202 I to 30-09-202 I and (, l. I 0-2021 to 0.'-12-2021 as there are only few tronsadio^: (vii, dispense with /iling of rhe Annuol/I-inal accounrs oJ' the , onpany in vieu, of the frling of the audilcd Itdt..f Ycarly acc( unts regularly in lhe Company (in liqn.) (viii. dispense with the payment of Central Govtr'1ment Fee in vi :u' of non-existence and non-realization of t;4, asset of the t ompany based on the Statement qf llfoirs, (Lr) rder that ld/s. Kakatiya Agritech Limited l,( dissolved with eLfect from the date of the order; (x)p, rmil lhe Official Liquidator to transfer ;he balance dmo ml to the company's liquidation acco mt, after dedtcting the Liquidation/incidental expenses. rluditor's feet'tc.; (xi) oermit the Official Liquidator to dispo.se of /de.;trqt the bottl s of accounts and records of the company on any day aftet expiry of 5 (five) years from the date of ordtr of the tlis.v lution of the company; and -) (xi) permit the Official Liquidonr to incur the cost of this application be met from and out of the ./unds of company in liquidation. " 3. The circumstances relevant for disposal of this Application are as follows. 4. This Court, by the order dt.06-09-2005 in C.P.No.32 of 2005, ordered winding up of lWs.Kakatiya Agritech Limited (Company in Liquidation). 5. The Official Liquidator has filed affidavit enclosing therewith Annexure-A to K With this application. 6. Heard Sri J.Sreenadh Reddy, learned counsel appearing for the Official Liquidator, and perused the statement of affairs of the company in liquidation and other material as evidenced by Annexure- A to K and also the affidavit dated 06-12-2021 filed by Smt.V.Santoshi Jagirdar, Official Liquidator. 7. As per the affidavit of the Official Liquidator,, as on date, since the company (in liquidation) is having an amount of Rs.21,47,087-40 Ps., to its credit; that claims were invited from the creditors of the company (in liquidation) by causing publication of notice in -{ newspapers as pcr orders dated 08.03.2007 in C.A. l{0.243 ol 2007; that letter war issued to prefercntial and unsecr r:<l creditors on 05. I 0.2007 u,h rse naues were me ntioned in the staton rent of afflairs; that pursuant t rcreto only one clairn frorn an unstcured creditor is received fbr a sum of Rs.75,82, l04l- and this Coul hy order dated 16.06.2008 in tl.A. No.5l9 of 2008 condoned the celay in filing the claim by the unsecured creditor; that no worknit n claims were received; and tl at details of dues towards workmen u ( r( not lirrnished in the statement of affairs of company (in liquidation). 8. By the a1 frdavit filed, Official Liquidator has lirlher stated that the claim of t nsecured creditor is pending adjtrdication; that the petitioner r.r'ho filed winding up petition against rle cornpany (in liquidation) ha I remitted a surll of Rs. 15,000i- towards initial expenses aftereceipt ol winding up order; that or t ()f the balance amount a',,ailab e. an amount of Rs.21,00,000/- be permitted to be paid/disbursed m APSFC being a secured creditor; thirt an amount of Rs. 15,000/- to l re petitioner deposited by him for wincling up and in the event the pr tilioner is not being traceable, the O '1ic ial Liquidator be permitted to transfer the initial expenses along '.r', ith the balance amount, after deducting the expenses to be incurred by the Official Liquidator along with Liquidation/incidental expenses, Auditor's fee etc, to the Company in Liquidation Companies Liquidation Account as required under Section 555(1) ofthe Act r/w Rute 283 ofthe Rules. 9. The Official Liquidator by the affidavit filed further stated that there are no assets available in the name of company (in liquidation) for disposal; that on payment of Rs.2 I ,00,000/- to APSFC, the balance amount available to the credit of the company-in-liquidation would be only a sum of Rs.47,087/-; and that no further affairs to be pursued by the Official Liquidator. 10. Considering the statement made as above by the Official Liquidator in the affidavit, and also taking note of the fact this Court having passed winding up order in the year 2005 and l7 years having already passed by and there is no further affairs to be pursued by the Official Liquidator, this Court is of the opinion that no useful purpose would be served by continuing with the winding up proceedings without dissolving the Company. { t I I 6 I L Therefore the Company Application 15 61dsr,x1. The Official Liquidator shal transfer the balance amount to tlle Cornpany's Liquidation Acc runt with the Rescrve Bank of india 12. Conseque rtly, C.P.No.32 of 2005 is close,l. Ihe Official Liquidator shal lbrward the certitled copy ol thi: order to the Registrar of the Companies along with the statemerll signed by the Official Liquidz tor, as mandated under Rule 282 o1 the Companies (Court) Rules, I )59. //TRUE COPYII SD/-K.SRINIVASA RAO Jo[\TFREGtSTRAR _ I ) )'' SI:tl'IION OFFICER To; 1) The Official Liquidat,rr, M/s. Kakatiya Agritech Ltd., (ln Lqn) High Court at Hyderabad for the ;tate of Telangana Office at 1"t floor corporate Bhawan, Nagole, Bandlagud r Thattiannaram Village Hayathnzga' Mandal, Ranga Reddy District Telan yana State Pin Code 500 680. 2) The Registrar of Corrpanies, Ministry of Corporate Affairs, Ocvernment of lndia 2'd floor Corporate Bhawan, Nagole, Bandlaguda, Tlrzrttiannaram Village Hayathnagar Ma rdal, Ranga Reddy District, Telangana llt,:rte Pin Code 500 680. 3) The Regional Directr,r, South Eastern Region, Ministry of Co lrorate Affairs, 3'd floor Corporate E hawan, Nagole, Bandlaguda, Thattiannaram Village Hayathnagar Mand; l, Ranga Reddy District Telangana Statc P n Code 500 680 4) The S.O. O.S. Sectio r , High Court of Judicature at Hyderab.rrl. for the State of Telangana. 5) Two C.D.Copies 6) One CC to Sri J. Srin rdh Reddy,Official Liquidator, High Court at Hyderabad. 7) One Spare Copy Q$> HIGH COURT DATED:2910712022 ORDER COMPANY AP )LICATION .No.581 ot 2021 IN COMPANY PE ITION NO. 32 OF 2OO5 ORDERING'THt COMPANY APPLICATION. f nE- Sl A r..( ci / l,l0li 'i 0 i/ut r; ,,i7 r az)." l2 T%