THE HON’BLE Ms. JUSTICE G.ROHINI C.A.Nos.1528 and 1529 of 2010 Date: 18.01.2011 Between: M/s. Jagadambay Agri Genetics Limited, Rep., by its Official Liquidator, High Court of A.P., Hyderabad. …Applicant THE HON’BLE Ms. JUSTICE G.ROHINI C.A.Nos.1528 and 1529 of 2010 C O M M O N O R D E R: By order dated 16.12.1999 made by this Court in C.P.No.42 of 1997 M/s. Jagadambay Agri Genetics Limited was wound up and the Official Liquidator attached to this Court was appointed as the liquidator. In pursuance of the subsequent order dated 28.03.2003 made in C.A.No.488 of 2003, the Official Liquidator had sold the assets of the company in liquidation and in terms of the order passed by this Court in C.A.No.2905 of 2003, dated 24.12.2003, the interim dividends were paid to the secured creditors of the company in liquidation. Subsequently, as per the order dated 01.04.2004 made in C.A.No.855 of 2004, the Official Liquidator invited claims from the creditors of the company in liquidation by publishing the notice in the news papers fixing the last date for receipt of claims as 27.04.2004. In response to the same, three claims were received from the secured creditors and the same were adjudicated. However, the claim from Central Excise Department could not be adjudicated and the same remained pending for a long time. Though as per the normal practice prevalent in the Office of the Official Liquidator, Certificate in Form No.71 is being filed only for adjudication of all the claims received and adjudicated, since the same is causing enormous delay in filing the list of creditors before this Court and more over the claim of the Central Excise Department which is pending for adjudication ranks second to the claims of secured creditors and it is not likely to yield any dividend, the Official Liquidator while submitting the Certificate in From No.71 prayed that the same may be taken on record by condoning the delay. The Official Liquidator also sought permission to declare and disburse dividend to the secured creditors and consequential reliefs as under: i. condone the delay of 2326 (Approx) days in filing the certificate in Form No.71 of the Companies (Couret) Rules, 1959 before this Hon’ble Court with respect to the adjudication of claim of secured creditors of the company in liquidation. ii. Take the certificate in Form No.71 filed as Annexure-A in respect of M/s. Jagadambay Agri Genetics Limited in liquidation relating to the claims of its secured creditors 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. Permit the Official Liquidator to dispense with the adjudication of claim of other preferential/unsecured creditors whose claims are not likely to receive and dividend. v. Declare a dividend @ 18.62 % in a rupee aggregating to a sum of Rs.38,28,377.13 ps. to SBI & Natiionla Horticulture Board, the secured creditors in respect of realization of all the assets of the company as detailed in the statement marked as Annexure-B. vi. Authorize Official Liquidator to reimburse an amount of Rs.7,42,645.00 to SBI, which was remitted to meet the advertisement charges, watch & ward salaries and valuation fee under Rule 338 of Companies (Court) Rules, 1959 on “priority”. vii. Authorize Official Liquidator to open a separate divident account in Punjab National Bank and pay the dividend to the secured creditors out of the said account, interms of Rule 290 of the Companies (Court) Rules, 1959. viii. Dispense with the publication of notice of dividend in newspapers. ix. Authorize Official Liquidator to send individual notices of dividend in Form No.138. 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 the 6 (six) months period to Companies Liquidation Account, in terms of Section 555 of the Companies Act, 1956. xii. 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. xiii. Order that the costs of this application do come out of the Estate of the Company (in liqudation). I have heard Sri M.Anil Kumar, learned counsel for the Official Liquidator. 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 very wide powers for enlarging the time fixed by the rules 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. As could be seen from the affidavit filed in support of the application, as on date a sum of Rs.46,01,022.33 p.s. is available to the credit of the company in liquidation and the Official Liquidator proposes to declare and disburse dividend to the entitled creditors of the company @ 18.62 % in a rupee aggregating to a sum of Rs.38,28,377.13 ps. only to the secured creditors namely State Bank of India and the National Horticulture Board out of the realization of the assets of the company in liquidation. I have also perused the detailed statement enclosed to the application as Annexure-B furnishing the calculation of amount available for dividend and proposed distribution. The material available on record shows that the dividend proposed by the Official Liquidator is proper and in order. 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. The Official Liquidator is also hereby permitted to declare and disburse dividend as proposed. All other reliefs sought are also hereby granted and accordingly, both the applications are disposed of. No costs. ______________ G.ROHINI,J Date : 18.01.2011 KLP