THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company application No.759 of 2011 ORDER:- This application has been filed by the Official Liquidator representing M/s.Satya Steel Strips Limited (in Liqn) under Section 460(4) of the Companies Act, 1956 read with Rules 7, 9 and 168 of the Company (Court) Rules, 1959, seeking permission of the Court to vary the list of creditors of the Company submitted in Form No.71 of the Company (Court) Rules, 1959 in C.A.Sr.No.1365 of 2011 so as to include the interim relief granted to the secured creditors in the varied list as per Annexure-A. The further relief sought for in the application is seeking ratification of the action taken by the Official Liquidator in disbursing the amount towards the proportionate share of the secured creditors in land admeasuring Ac.5.30 guntas and also interest under Rule 179 of the Company (Court) Rules, 1959 in pursuance of the directions of this Court dated 23-3-2011 made in Company Application No.312 of 2011. This Court by order dated 19-6-1992 made in C.P.No.23 of 1988 directed winding up of M/s.Satya Steel Strips Limited and appointed the Official Liquidator attached to this Court as its Liquidator. The assets of the Company were charged to Andhra Pradesh State Finance Corporation, Hyderabad. The secured creditor moved an application vide Company Application No.22 of 1996 seeking permission of the Court to stand outside the liquidation proceedings. This Court by order dated 15-4-2006 permitted the secured creditor i.e., Andhra Pradesh State Finance Corporation, Hyderabad, to remain outside the liquidation proceedings. A direction has been given to the Andhra Pradesh State Finance Corporation, Hyderabad, to remit the balance sale consideration of Rs.58,07,208/- to the Official Liquidator. Accordingly, the Andhra Pradesh State Finance Corporation remitted a sum of Rs.46,51,453/- to the Official Liquidator towards excess sale consideration of the assets situated at Jeedimetla Unit after adjusting a sum of Rs.1,14,48,547/- towards their principal outstanding, interest, watch & ward, legal expenses and property tax. The Official Liquidator auctioned the assets of the Company situated at Kalakkal Village, Gajwel Taluq, Ranga Reddy District and the sale came to be confirmed by this Court on 23-12-2009 vide Company Application No.1135 of 2009. As per the records of the Company (in Liqn), an extent of Ac.23.00 gts., from out of the total extent of Ac.28.30 gts., was charged in favour of Canara Bank, State Bank of India and ANZ Grindlays Bank Limited vide Agreement dated 23-7-1988 and the remaining extent of land admeasuring Ac.5.30 gts., which was given as collateral security belongs to Smt.Satyavathi, one of the Ex- Directors of the Company (in Liqn). The Official Liquidator sold the entire extent of Ac.28.30 gts., as one lot and realized Rs.11,10,00,000/- . Out of the sale amount, an amount of Rs.2,16,09,568.75 P.S., is earmarked towards the value of the extent of Ac.5.30 gts., which is the collateral security of the secured credits viz., State Bank of India, Canara Bank and ANZ Grindlays Bank. Canara Bank, one of the secured creditors, filed O.A.No.1316 of 1999 before the Debt Recovery Tribunal, Hyderabad, and obtained Recovery Certificate dated 24-10- 2002 for Rs.29,62,47,318.42 P.S., against the Company (in Liqn). State Bank of India, another secured creditor of the Company, also filed O.A.No.681 of 1999 before the Debt Recovery Tribunal, Hyderabad and obtained Recovery Certificate dated 23-10-2002 for Rs.31,71,05,811.13 P.S., against the Company (in Liqn). Thereafter, State Bank of India and Canara Bank have apportioned a sum of Rs.52,75,661/- and 49,82,442/- respectively from out of the sale proceeds of house property bearing No.C17, Vikrampuri Colony, Secunderabad, offered by one of the Ex-Directors – smt.S.Sathyavathi as collateral security towards their loan amounts. This Court by order dated 20-4-2010 made in Company Application No.279 of 2010 permitted the Official Liquidator to invite the claims from the creditors of the Company. Accordingly, the Official Liquidator published a notice in Form No.63 inviting claims from the creditors of the Company (in Liqn). In response to the invitation of claims, the Official Liquidator received four claims from creditors of the Company (in Liqn) and they are State Bank of India, Canara Bank, Income Tax Department and Commercial Tax Department. The Official Liquidator is holding a sum of Rs.11,27,85,687.49 P.S., relatable to the Company (in Liqn). Out of the said amount, an amount of Rs.9,07,25,535/- is in respect of Ac.5.30 guntas of land. It is the exclusive collateral security of the secured creditors of the Company. If the said amount is deducted, the amount available with the Official Liquidator for declaration of dividend is Rs.9,07,25,535/-. The Official Liquidator has adjudicated the claims of the creditors of the Company and filed the list of the creditors of the Company in Form No.71 and for declaration of dividend at @ Rs.4,32,10,762.10ps, to the secured creditors in Company Application Sr.No.1365 of 2011 which was taken on record and allowed for disbursement by an order dated 23-3-2011. Subsequently, the Official Liquidator had filed Company Application No.312 of 2011 seeking interim relief to the secured creditors in respect of the land admeasuring Ac.5.30 gts., and also interest @ 4% from the date of winding up order i.e., from 19-6-1992 to 28-3-2011 till the date of disbursement as per rule 179 of the Company (Court) Rules, 1959. The said application came to be allowed on 23-3-2011. Accordingly, the Official Liquidator has disbursed the above amount to the secured creditors. In view of the modifications, the Official Liquidator moved the instant application to vary the list of the creditors of the Company submitted before this Court in Form No.71 of the Company (Court) Rules, 1959. Heard the learned Counsel appearing for the Official Liquidator and perused the affidavit filed in support of the application. The circumstances under which the list of creditors is required to be varied have been stated in the affidavit. Varied List of creditors finds place as Annexure-A to the application. In view of the reasons stated in the affidavit, the application is ordered and varied list of creditors of the Company as stated in Annexure-A has been taken on record. ________________________ B.Seshasayana Reddy, J 14th July, 2011 smr