THE HON’BLE Ms. JUSTICE G. ROHINI COMPANY APPLICATION No.218 OF 2011 Dated: 23.03.2011 Between : M/s. Lakshmi Porcelains Limited …… Applicant The Court made the following :- THE HON’BLE Ms. JUSTICE G. ROHINI COMPANY APPLICATION No.218 OF 2011 O R D E R : The Official Liquidator attached to this Court representing M/s. Lakshmi Porcelains Limited, the company in liquidation is the applicant in this application. This Company Application is filed to declare a dividend to the secured creditors of the company in liquidation and for other reliefs as under: i. declare a dividend amounting to Rs.9,17,519.00 to the secured creditors and workmen of the company in liquidation from out of the amounts available for appropriation in respect of sale of assets as detailed in the statement marked as Annexure-“A”. ii. authorise Official Liquidator to reimburse an amount of Rs.5,66,715.00 to IDBI, IFCI, Canara Bank, Andhra Bank and ICICI, which was paid by the secured creditors to Official Liquidator to meet the advertisement charges, watch and ward salaries and valuation fee under Rule 338 of the Companies (Court) Rules, 1959. iii. authorise Official Liquidator to open a separate dividend account in Punjab National Bank and to pay the dividend to the workmen and secured creditors out of the said account, in terms of Rue 290 of the Companies (Court) Rues, 1959. iv. dispense with the publication of notice of dividend in newspapers. v. authorise Official Liquidator to send individual notices of dividend in Form No.138 along with Form No.139 to the workmen and secured creditors of the company. vi. authorise Official Liquidator to fix the schedule for making payment. vii. authorise Official Liquidator to transfer the un-paid dividend, if any, remaining in the dividend account, after the expiry of the 6 (six) months period to Companies Liquidation Account, in terms of Section 555 of the Companies Act, 1956. viii. authorise Official Liquidator to pay dividend due to any deceased creditor to his legal heirs upon production by such legal heirs, a family member certificate or such other certificate issued by the Revenue Authority instead of producing a succession certificate and also upon furnishing personal indemnity, in terms of Rule 280 of the Companies (Court) Rules, 1959. ix. authorise 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. x. order that the costs of this application do come out of the Estate of the Company (In Liqn.). I have heard Sri M. Anil Kumar, the learned counsel for the Official Liquidator. A perusal of the material available on record shows that M/s. Lakshmi Porcelains Limited was directed to be wound up by this Court by order dated 02.09.1998 made in R.C.C.No.6 of 1993 and the Official Liquidator attached to this Court was appointed as its Liquidator. Pursuant thereto, having taken possession of the assets of the company, the Official Liquidator sold the same. Thereafter, in terms of the order passed by this Court dated 01.04.2004 made in C.A.No.853 of 2004, the Official Liquidator invited the claims from the creditors of the company in liquidation by publishing a notice in Form No.63 in the newspapers. In response to the same, various claims were received by the Official Liquidator including that of workmen and secured creditors. The claims of the workmen union filed on behalf of 144 workmen were adjudicated and admitted. After completion of adjudication, the Official Liquidator filed C.A.No.1600 of 2006 together with Form No.71 and the same was taken on record by order dated 23.11.2006. It is also submitted that the claims of institutional secured creditors were taken up for adjudication and upon completion of the same, the Official Liquidator filed the varied Form No.71 so as to include the names of secured creditors in the list of creditors of the company. By order dated 16.06.2008 made in C.A.No.585 of 2008 had taken on record the list of the creditors in Form No.71 as ‘varied’. Interim dividends to the secured creditors and dividends to workmen were also paid. It is also explained by the Official Liquidator that as on date a sum of Rs.15,52,384-07 paise is available to the credit of the company in liquidation. While proposing to declare and disburse dividends to the entitled creditors of the company out of the said amount available, a detailed statement of the particulars of the amounts available for dividend and proposed distribution are furnished in Annexure-A enclosed to this application. The statement showing the amounts entitled to each individual workman is enclosed as Annexure-B. Thus, the Official Liquidator also seeks the permission of this Court as required under Rules 275 and 276 of the Companies (Court) Rules, 1959 to declare and disburse the dividends to the entitled creditors and for other consequential reliefs including dispensing with the publication of dividends notice in newspapers. The Official Liquidator also seeks permission to open a separate dividend account to declare and disburse dividends to the entitled creditors of the company. The learned Counsel representing the Official Liquidator submits that the proposals to declare and disburse the dividend as per the particulars furnished in Annexures-A and B are in order. Hence, there can be no impediment to grant the permission as sought by the Official Liquidator for declaring and disbursing the dividends to the entitled creditors of the company in liquidation. In the result, the Company Application is allowed as prayed for. ____________ G. ROHINI, J Date: 23.03.2011 Ivd