THE HON’BLE Ms. JUSTICE G.ROHINI COMPANY APPLICATION NOs.1536 & 1537 OF 2010 In R.C.C.No.11 OF 1999 Dated: 18.01.2011 In Company Application No.1536 of 2010: In the matter of Companies Act, 1956 And In the matter of M/s. Ranka Cables Limited (In liqn.) Between: M/s. Ranka Cables Limited (In Liqn.) Rep. by the Official Liquidator, High Court of Andhra Pradesh, Hyderabad. … Applicant And 1. Kotak Mahindra Bank Limited and 3 others. … Respondents In Company Application No.1537 of 2010: In the matter of Companies Act, 1956 And In the matter of M/s. Ranka Cables Limited (In liqn.) Between: M/s. Ranka Cables Limited (In Liqn.) Rep. by the Official Liquidator, High Court of Andhra Pradesh, Hyderabad. … Applicant And 1. Kotak Mahindra Bank Limited and 3 others. … Respondents THE HON’BLE Ms. JUSTICE G.ROHINI COMPANY APPLICATION NOs.1536 & 1537 OF 2010 In R.C.C.No.11 OF 1999 COMMON ORDER : These two applications are filed by the Official Liquidator representing M/s. Ranka Cables Limited, the company in liquidation, to condone the delay in filing the Certificate in Form No.71 of the Companies (Court) Rules, 1959, (for short, ‘the Rules’) to permit him to declare the second and final dividend to the secured creditors of the company-in-liquidation and for other reliefs as under : (i) Condone the delay of 3088 (As on 09.12.2010) days in filing the Certificate in Form No.71 of the Companies (Court) Rules, 1959 before this Hon’ble Court with respect to adjudication of claims of secured creditors of the company in liquidation. (i i ) Take the Certificate in Form No.71 filed as Annexure-A in respect of M/s. Ranka Cables Limited in liquidation relating to the claims of its secured creditors SBI, IIBI & Workmen (except APSFC’s claim) with the memorandum of admission/rejection of the claims on record. (iii) Direct the Registrar to notify the said Form No.71 on the notice board of this Hon’ble Court in terms of Rule 169 of the Companies (Court) Rules, 1959. (iv) Authorize Official Liquidator to declare a 2nd and final dividend totalling to Rs.23,01,240.74 ps To two secured creditors and workmen as per Annexure “B” after setting apart a sum of Rs.9,03,698/- being priority expenses payable to Kotak Mahindra Bank Limited (Substitute of State Bank of India). (v) Permit the Official Liquidator to pay Rs.9,03,698/- being the priority expenses to Kotak Mahindra Bank Limited (substitute of SBI) with usual terms and conditions. (vi) Dispense with the adjudication of Unsecured & Preferential creditors claims if any pending with the Official Liquidator as they may not get any dividend from and out of the assets of the company in liquidation. (vii) Authorize 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. (viii) Dispense with the publication of notice of dividend in newspapers as the dividend is sought to be paid to only workmen & one secured creditor viz., SBI. (ix) Permit the Official Liquidator to issue individual notices of Dividend to each of the secured creditors along with necessary Forms & Undertaking. (x) Authorize Official Liquidator to fix the schedule for making payment. (xi) 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. (xii) Authorize Official Liquidator to pay dividend due to any deceased creditor to his legal heirs upon production by such legal heirs, a family member or such other relevant certificate or such other certificate instead of producing a succession certificate and also upon furnishing a person indemnity, in terms of Rule 280 of the Companies (Court) Rules,1959. (xiii) 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. (xiv) Order that the costs of this application do come out of the assets of the Company (In liqn.)”. The material available on record shows that by order dated 7.12.1999 made in R.C.C.No.11 of 1999, this Court directed winding up of M/s. Ranka Cables Limited and the Official Liquidator attached to this Court was appointed as its Liquidator. Pursuant thereto, the assets of the company-in-liquidation were sold by the Official Liquidator for a total consideration of Rs.4,18,96,186/-. Thereafter, by order dated 31.1.2002 in C.A.No.46 of 2002 this Court directed the Official Liquidator to invite claims from the creditors and workmen of the company-in-liquidation. Accordingly, notice was published in newspapers and the claims received in response to the same were adjudicated and admitted by the Official Liquidator. However there is delay in filing the Certificate in Form No.71 of the Rules. I have heard Sri M. Anil Kumar, the learned Counsel representing the Official Liquidator. In the affidavit filed in support of the applications, it is stated that the claims were invited from the creditors of the company in liquidation fixing the last date for receipt of claims as 23.03.2002. In response to the same, the State Bank of India – one of the secured creditors having charge over the assets of the company, submitted its claim. Similarly, the workmen of the company in liquidation also filed their claims. All the said claims were adjudicated admitting a sum of Rs.27,51,15,274/- as secured debt in respect of State Bank of India and Rs.54,00,658/- in respect of the workmen. While so, by order of this Court in C.A.No.48 of 2009 M/s. Kotak Mahindra Bank Limited, an assignee of the debts of State Bank of India has been substituted in the place of State Bank of India. That apart the workmen of the company preferred appeal before this Court against the adjudication made by the Official Liquidator on their claim. The said appeals were disposed of by order dated 9.7.2009. Another secured creditor – IIBI – made its claim belatedly on 30.07.2010 and by virtue of the order dated 6.10.2010 made in C.A.No.746 of 2010 the delay on the part of IIBI in filing its claim was condoned. Accordingly, the Official Liquidator, having received and adjudicated its claim allowed entire claim amount of RS.73,50,407/- and issued Form No.70, dated 20.10.2010. In the process, there was delay of about 3088 days in filing the Certificate in Form No.71 of the Companies (Court) Rules, 1959. It is also explained in the affidavit filed by the Official Liquidator that he intends to disburse an amount of Rs.23,01,240-74 ps as the 2nd final divided to the secured creditors i.e., SBI, IIBI & workmen after adjusting the interim dividends already paid to them against the admitted/entitled amount. The amounts available for distribution of dividend and the other particulars have been furnished in Annexure-B enclosed to the application. Accordingly, these two applications have been filed to condone the delay in filing the Certificate in Form No.71 and to grant permission to declare and disburse the second and final dividend. It is true that the certificate in Form No.71 should be filed within three months from the date of fixing for submission of proofs. However the explanation offered by the Official Liquidator in the affidavit filed in support of the application shows that the delay was occasioned for genuine reasons and there is no reason to hold that the delay had occurred in the office of the Official Liquidator deliberately or on account of negligence. Rule 167 read with Rule 7 of the Companies (Court) Rules, 1959 confers wide powers for enlarging the time fixed for filing Certificate in Form No.71 to meet the ends of justice. It is also relevant to note that the condonation of the delay in the present case does not adversely affect the rights of any of the parties, but on the other hand it would enable the winding up proceedings to reach the logical conclusion. Hence I deem it appropriate to condone the delay in filing the Certificate in Form No.71. Accordingly, the delay in filing the Certificate in Form No.71 is hereby condoned and the said Certificate is taken on record with a direction to the Registrar to notify the same as provided under Rule 169 of the Companies (Court) Rules, 1959. As the dividend proposed to be declared and disbursed as shown in Annexure-B statement is found to be in order, the Official Liquidator is also hereby directed to declare and disburse the second and final dividend as proposed. All other reliefs sought by the Official Liquidator are also granted and accordingly both the Company Applications are disposed of. No costs. _____________ G. ROHINI, J. Dt. 18.01.2011 gbs