THE HON'BLE Ms. JUSTICE G.ROHINI COMPANY APPLICATION Nos. 1351 and 1352 OF 2010 Dated: 30.11.2010 Between: M/s. Jayasakthi Textiles Limited (In Liqn) ..... Applicant The Court made the following : THE HON’BLE Ms. JUSTICE G. ROHINI COMPANY APPLICATION No.1351 OF 2010 AND COMPANY APPLICATION No.1352 OF 2010 In COMPANY PETITION No.35 OF 1993 COMMON ORDER : M/s. Jayasakthi Textiles Limited was ordered to be wound up by this Court by order dated 17.7.1997 in Company Petition No.35 of 1993 and the Official Liquidator attached to this Court was appointed as its Liquidator. Pursuant thereto, the property of the company in liquidation was brought to sale by the Official Liquidator in terms of the order passed by this Court dated 18.10.2009 in C.A.No.1062 of 2009 and an extent of Ac.3-17 guntas of land was sold in public auction and the sale was also confirmed by this court in favour of the highest bidder vide order dated 1.12.2009 in C.A.No.1062 of 2009. Thereafter, the Official Liquidator filed C.A.No.280 of 2010 seeking directions to invite the claims from the creditors of the company in liquidation and the same was ordered by this Court on 20.04.2010. In pursuance thereof a notice in Form No.63 was published in daily newspapers on 14.6.2010 and Form No.64 notices were also issued to all the creditors. Only one claim was received within the date fixed from State Bank of India for a sum of Rs.40,72,466-78 ps along with interest and the same was admitted in full by issuing a notice in Form No.70 on 2.10.2010 as secured debt. Accordingly, while submitting a Certificate of the list of creditors in Form No.71 in terms of Rule 167 of the Companies (Court) Rules, 1959, the Official Liquidator filed C.A.No.1352 of 2010 with a prayer to take the said certificate on record and direct the Registrar of this Court to display the same on the notice-board. In the affidavit filed in support of the application, it is stated by the Official Liquidator that whereas three months time has been prescribed under Rule 167 of the Rules from the last date fixed for submission of the proofs and accordingly the certificate ought to have been filed on or before 11.10.2010, due to the time taken by State Bank of India for furnishing the evidence in support of their claim against the company in liquidation, the certificate in Form No.71 could be filed before this Court on 18.11.2010 and thus there is a delay of one month and eight (8) days. Thus the Official Liquidator has also prayed for condoning the said delay of one month and eight (8) days. It is further stated in the affidavit filed by the Official Liquidator that a sum of Rs.15,66,782/- is lying to the credit of the company in liquidation and that the dividend has to be declared to only one secured creditor of the company. A statement has been placed before this Court which shows that a sum of Rs.11,80,714-35 ps is available for disbursement to State Bank of India whose claim has been admitted by the Official Liquidator as secured debt. The Official Liquidator has proposed a first and final dividend at the rate of 20.5130% to the State Bank of India out of their admitted secured debt. Accordingly, he filed Company Application No.1351 of 2010 praying the following reliefs: (i) declare a final divided @ 20.5130% amounting to Rs.11,80,714-35 (Rupees Eleven Lakhs Eighty Thousand Seven Hundred Fourteen and Thirty Five Paise only) to State Bank of India, the only secured creditor of the Company. (ii) authorize Official Liquidator to reimburse an amount of Rs.3,76,992/- to SBI, which was remitted to meet the advertisement charges under Rule 338 of the Companies (Court) Rules, 1959 on “priority”. (iii) dispense to open a separate divided account and allow the Official Liquidator to pay the dividend amount by way of cheque drawn from P/D account as the dividend now proposed is only to one creditor. (iv) dispense with the publication of notice of dividend in newspapers as the same is in respect of only one creditor, who is being individually informed. (v) authorize Official Liquidator to send individual notice of divided in Form No.138 along with proforma receipt to SBI. (vi) authorize Official Liquidator to fix the schedule for making payment. (vii) 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. (viii) order that the costs of this application do come out of the Estate of the Company (In liqn.); and pass such further or other order or orders, as this Hon’ble Court may deem fit and proper in the circumstances of the case.” I have heard the learned counsel for the Official Liquidator and perused the material available on record. Having regard to the reasons stated in the affidavit filed by the Official Liquidator, I am satisfied that the delay of one month and eight (8) days in filing the certificate in Form No.71, filed as Annexure-A to the application, containing the list of creditors of the company whose claims were adjudicated and admitted has been properly explained and therefore I deem it appropriate to condone the delay of one month and eight (8) days and take the certificate in Form No.71 in respect of the company in liquidation. So far as the declaration and payment of dividend is concerned, the learned counsel for the Official Liquidator submits that the only claim received from the State Bank of India is proper. I have also perused the statement showing the amount available for dividend and proposed distribution enclosed to the application as Annexure-B. Accordingly, relief No.(i) in Company Application No.1351 of 2010 is ordered. I also deem it appropriate to order the consequential relief Nos.(ii) to (viii) of Company Application No.1351 of 2010. Both Company Application Nos.1351 & 1352 of 2010 are disposed of accordingly. No costs. ____________ G. ROHINI, J. Dt. 30.11.2010 Ivd