THE HON'BLE Ms. JUSTICE G.ROHINI COMPANY APPLICATION No. 1544 OF 2010 IN COMPANY APPLICATION No.397 OF 2009 IN COMPANY PETITION No.113 OF 2002 Dated: 02.02.2011 Between: M/s. Merbanc Financial Services Limited ..... Applicant AND The learned Court of V Senior Civil Judge, City Civil Courts, Hyderabad .....Respondent THE HON’BLE Ms. JUSTICE G. ROHINI COMPANY APPLICATION No. 1544 OF 2010 IN COMPANY APPLICATION No.397 OF 2009 IN COMPANY PETITION No.113 OF 2002 O R D E R : The Official Liquidator attached to this Court representing M/s. Merbanc Financial Services Limited, the company in liquidation filed this application under Section 456 of the companies Act, 1956 read with Rule 9 of the Companies (Court) Rules, 1959 seeking a direction to the Court of the V Senior Civil Judge, City Civil Court, Hyderabad to refund the sum of Rs.25 lakhs together with interest accumulated thereon from the account of O.S.No.1164 of 1997 to the Official Liquidator along with the original sale deed dated 28.04.1995 (marked as Ex.A.7). I have heard Sri M.Anil Kumar, the learned counsel appearing for the Official Liquidator and perused the material available on record including the report dated 24.01.2011 submitted by the learned V Senior Civil Judge, City Civil Court, Hyderabad. The company in liquidation was directed to be wound up by this Court by order dated 06.03.2003 in Company Petition No.113 of 2002 and the Official Liquidator attached to this Court was appointed as its liquidator. Prior to the winding up proceedings, the company in liquidation filed O.S.No.1164 of 1997 in the Court of the V Senior Civil Judge, City Civil Court, Hyderabad for recovery of money due from M/s. Sree Vidya Polymers Limited and two others on the foot of a mortgage and a preliminary decree was passed against the schedule mentioned immovable properties for recovery of Rs.27,42,748/- with costs and future interest at 9% per annum. After the winding up was ordered, the Official Liquidator representing the company in liquidation filed I.A.No.418 of 2004 for a final decree. While the said application was pending, I.A.No.310 of 2005 was filed by third parties claiming title and the same was dismissed by order dated 14.03.2008. Aggrieved by the same, the claimants therein filed C.R.P.No.4756 of 2008 in which interim stay was granted subject to the condition of depositing Rs.25 lakhs to the credit of O.S.No.1164 of 1997. The said claimants also filed C.A.No.397 of 2009 in C.P.No.113 of 2002 seeking a direction to the Official Liquidator to receive the said sum of Rs.25 lakhs and order release of the document pertaining to the property to an extent of Ac.1.00 situated in Sy.No.331 of Nizampet Village. During the pendency of the said application, a compromise was entered into between the said claimants and the company in liquidation by virtue of which apart from the entire decretal amount of Rs.27,42,748/-. A further sum of Rs.2,50,000/- was paid by the claimants/applicants in C.A.No.397 of 2009 to the Official Liquidator. Having taken note of the said compromise, this Court allowed C.A.No.397 of 2009 by order dated 30.04.2009 holding that the entire liability of the applicants therein arising out of O.S.No.1164 of 1997 should be treated and deemed to have been completely liquidated. Accordingly, the Official Liquidator was directed to return the original title deeds held by the company as security for the loan advanced by them in favour of the applicants in C.A.No.397 of 2009. Pursuant thereto, C.R.P.No.4756 of 2008 was withdrawn and accordingly the same was dismissed by order dated 11.06.2009. Thereafter, the Official Liquidator filed I.A.No.1646 of 2009 in the Court of the V Senior Civil Judge, City Civil Court, Hyderabad for return of original title deeds. He also filed I.A.(Sr.)No.5348 of 2009 for withdrawal of Rs.25 lakhs. As the said applications were not entertained by the civil Court on the ground that there was no specific direction to the Official Liquidator to receive the amounts in deposit, the present application is filed by the Official Liquidator. The order passed by this Court dated 30.04.2009 in C.A.No.397 of 2009 itself shows that the amount was paid by the applicants therein to the Official Liquidator to liquidate their liability under the decree in O.S.No.1164 of 1997. This Court, had also recorded that since the entire liability of the applicants therein vis a vis the company under liquidation was cleared, they were entitled to return of the original title deeds. Thus, it is clear that the Official Liquidator is entitled to receive the sum of Rs,25 lakhs deposited to the credit of the O.S.No.1164 of 1997 together with interest accumulated thereon. Similarly, the applicants in C.A.No.397 of 2009 are entitled to receive the title deeds held by the company as security. It is not disputed before this Court that the order in C.A.No.397 of 2009 dated 30.04.2009 has become final. Hence, there cannot be any impediment for return of the amount in deposit to the Official Liquidator as well as the original title deeds. Accordingly, there shall be a direction to the learned V Senior Civil Judge, City Civil Court, Hyderabad to refund the amount of Rs. 25 lakhs to the Official Liquidator together with interest accumulated thereon from the account of O.S.No.1164 of 1997. The original title deeds marked in O.S.No.1164 of 1997 shall also be returned to the Official Liquidator so as to enable him to hand over the same to the applicants in C.A.No.397 of 2009 in terms of the earlier order of this Court dated 30.04.2009. The application is accordingly allowed as prayed for. ___________ G. ROHINI, J Date : 02.02.2011 Ivd