THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.545 of 2011 20th April, 2011 Between :- M/s.Commercial Benefit Corporation And 6 other Firms (in Liqn), Rep. By the Official Liquidator, High Court of Andhra Pradesh, Hyderabad .. Applicant THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.545 of 2011 ORDER:- This is an application filed by the Official Liquidator representing M/s.Commercial Benefit Corporation & 6 others (In Liqn.) under Sections 460 (4), 555 (1) of the Companies Act, 1956 read with Rules 9, 11, 167, 275, 276 and 290 of the Company (Court) Rules, 1959, seeking sanction of the declaration of dividend @ 100 paise in a rupee of admitted amounts in respect of 3 creditors, namely Smt.S.Noorjahan, Municipal Corporation, Madanapalle and K.Devendara Reddy, which would work out to Rs.2,61,392.27 P.S., as per Annexure-A, dispensing with the publication of notice of declaration of dividend in newspapers and authorizing him to send individual notices of dividend in Form No.138. Further relief has been sought for with regard to opening of Dividend Account with Punjab National Bank, Bank Street, Koti, Hyderabad, and transfer an amount of Rs.2,61,392.27 P.S., for a period of six months etc., and permit the Official Liquidator to remit the dividend which remains unpaid after six months into the Companies Liquidation Account in terms of Section 555 of the Companies Act, 1956. Background facts, in nutshell, leading to filing of this application by the Official Liquidator are:- By an order dated 26-11-1999 made in Company Petition No.10 to 16 of 1999, Official Liquidator attached to this Court came to be appointed as provisional liquidator of the above mentioned firms - M/s.Commercial Benefit Corporation & 6 others. Thereafter, by order dated 2-9-2002 made in Company Petition Nos.10 to 16 of 1999, M/s.Commercial Benefit Corporation & 6 others came to be ordered to be wound-up appointing the Official Liquidator as liquidator. During the course of winding up proceedings, this Court directed the Official Liquidator to invite claims from the creditors of M/s.Commercial Benefit Corporation & 6 other Firms (In Liqn.). Accordingly, the Official Liquidator invited claims by way of publication of notice in Form No.63 in Andhra Bhoomi, Tegulu Daily Newspaper, and Indian Express, English Daily Newspaper on 28-12-2007 fixing the last date for submission as 23-1-2008. In response to the said publication, 813 claims were received by the Official Liquidator and the same were adjudicated. Thereafter, the Official Liquidator filed an application being Company Application (SR) No.5263/2008 for filing Form No.71 under Rule 167 of the Companies (Court) Rules, 1959 and also seeking sanction for declaration of dividends to 813 creditors. The said application came to be ordered on 25-9-2008 declaring dividend @ 35% to 813 creditors. Another application came to be filed by the Official Liquidator seeking sanction of this Court to handover the 1st dividend cheques to Andhra Pradesh Legal Services Authority for distribution among the entitled depositors. The said application being Company Application No.1728 of 2008 came to be ordered on 25-9- 2008. After accomplishment of the 1st dividend of 35% to 813 claimants, Official Liquidator filed Company Application No.154 of 2009 seeking declaration of final dividend @ 65% to the entitled creditors, whose claims were adjudicated. The said application came to be ordered on 3-3-2009 directing the Official Liquidator to transfer and pay the said amount of Rs.2,61,96,087.12 P.S., to the concerned District Legal Services Authorities in the State of Andhra Pradesh and to pay the dividend amount by way of post to the other creditors, who are the residents of the adjoining States. Accordingly, the Official Liquidator transferred the said amount. Subsequent to the declaration and disbursement of final dividend, the Official Liquidator has commenced adjudication of other claims, which were received after the last date fixed for receipt of the claims i.e., 23-1-2008. This Court by an order dated 13-7-2009 passed in Company Application No.665 of 2009 condoned the delay of all the claims filed before the Official Liquidator. Thereupon, the Official Liquidator adjudicated the claims. The Official Liquidator filed Company Application No.223 of 2010 seeking permission to vary the list of creditors filed in Form No.71 and also declaration of dividend @ 100% in respect of the belated claims. The said application came to be ordered on 31-3-2010. This Court by order dated 7-9-2010 made in Company Application No.663 of 2010 directed the Official Liquidator to re-adjudicate the claim of Smt.Noorjahan. Accordingly, the Official Liquidator readjudicated the claim and issued Form No.70 to Smt.S.Noorjahan. The Official Liquidator also completed the adjudication of the claims of the Municipal Corporation, Madanapalle, and K.Devendra Reddy. Hence, the present application seeking permission to vary the list of creditors. Heard learned Counsel appearing for the Official Liquidator and perused the material brought on record. The instant application has become eminent in view of the adjudication of the claims of Smt.S.Noorjahan, Municipal Corporation, Madanapalle and K.Devendara Reddy. There is sufficient amount to meet the claims of the above three individuals. In that view of the matter, I do not see any impediment in permitting the Official Liquidator to declare the dividend @ 100 paise in a rupee in respect of three creditors whose names have been stated supra. The paper publication as to declaration of dividend is dispensed with. The Official Liquidator is permitted to send individual notices of dividend in Form No.138 to the three creditors namely Smt.S.Noorjahan, the Municipal Corporation, Madanapalle and K.Devendara Reddy. Company Application is ordered accordingly. _________________________ B.Seshasayana Reddy, J 20th April, 2011 smr