THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY C.A.Nos.963 & 964 OF 2011 COMMON ORDER These two applications have been filed by the Official Liquidator representing M/s. Andhra Pradesh Scooters Limited ( in liquidation) seeking permission to vary the list of creditors of the company in liquidation and an order to declare dividend @ 100% amounting to Rs.11,10,374/- to P.F Organization of the company, whose claim had been adjudicated after declaring dividends to secured creditors & workmen of the company; and other incidental reliefs. This Court by order dated 18-08-1994 made in R.C.C.No.5 of 1993 directed for winding up of M/s. A.P. Scooters Limited and appointed the Official Liquidator as its liquidator. During the course of winding up proceedings, the Official Liquidator took possession of the assets of the company comprising Land & Buildings, and Plant & Machinery situated at Patancheru, Medak District and sold the same for a sum of Rs.3125 lakhs & Rs.360 lakhs respectively. Thereafter, the Official Liquidator made interim payments to the secured creditors viz., IDBI, IFCI, SCB, SBH & IOB of the company totaling to Rs.1800 lakhs in two instalments i.e., in March, 2007 & September, 2008. This Court by an order dated 10-12- 1998 made in C.A.No.422 of 1998 permitted the Official Liquidator to invite the claims from the creditors of the company. In response to the notice in Form No.63 published in daily newspapers of Deccan Chronicle & Vaartha, the Official Liquidator received claims from various creditors including that of secured creditors & workmen. After completion of the adjudication of the claims, the Official Liquidator filed an application for taking on record the certificate in Form No.71 in respect of the secured creditors and workmen of the company. This Court by an order dated 26-12-2008 passed in C.A.Nos.1664 & 1671 of 2008 permitted the Official Liquidator to declare and disburse the first dividend to eligible secured creditors and workmen @ 100% of their admitted secured debt along with interest @ 4% p.a. taking note of the availability of funds of the company. Accordingly, the Official Liquidator paid the first dividend to secured creditors and workmen of the company. After the disbursement of the first dividend, the Official Liquidator received individual claims from three workmen of the company and the same were also adjudicated and admitted. The Official Liquidator filed an application for varying Form No.71 already taken on record so as to include the names of those three workmen whose claims have been admitted. The application moved by the Official Liquidator seeking an order to declare first dividend to three individual workmen came to be allowed on 23-08-2010 vide C.A.No.658 of 2010. Accordingly, the Official Liquidator paid first dividend to the three individual workmen. The second dividend came to be declared by the Official Liquidator pursuant to the order dated 24-12-2010 passed in C.A.No.1535 of 2010. After disbursing the amounts to the secured creditors and the workmen of the company, an amount of Rs.11.28 lakhs is available to the credit of the company in liquidation. The Provident Fund Organization dues payable by the company in liquidation comes to Rs.11,10,374/-. Hence, this application by the Official Liquidator to vary the list of creditors of the company submitted in Form No.71 of the Companies Court Rules, 1959 and declare dividend @ 100% amounting to Rs.11,10,374/- to Provident Fund Organization while dispensing with the publication of notice of declaration of dividend in newspapers. Heard the learned counsel appearing for the applicant and perused the material brought on record. An amount of Rs.11.28 lakhs is available to the credit of the company in liquidation after disbursing dividend to the secured creditors and workmen. The debt of the Provident Fund Organization admitted by the Official Liquidator is Rs.11,10,374/-. In that view of the matter, the Official Liquidator is permitted to vary the list of creditors of the company and pay dividend amount of Rs.11,10,374/- to Provident Fund Organization of the company in liquidation. Publication of notice of declaration of dividend in newspapers is dispensed with. The Official Liquidator is permitted to send notice to the Provident Fund Organization individually. Accordingly, both the applications are ordered. __________________________ B.SESHASAYANA REDDY,J rkk Dated: 24-08-2011