THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.990 of 2011 19th September, 2011 Between :- M/s.REIL Products Limited (in Liqn) Rep.by the Official Liquidator High Court of Andhra Pradesh, Hyderabad .. Applicant And The Dy.General Manager, IDBI Bank Limited, Chapal Road, Abids, Hyderabad and another .. Respondents THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.990 of 2011 ORDER:- This Company Application has been filed by the Official Liquidator representing M/S. REIL Products Limited (in Liqn) under Sections 457 (1)(e) and 460 (4) of the Companies Act, 1956 read with Rules 9, 275 and 276 of the Companies (Court) Rules, 1959 seeking to take the certificate in Form No.71 filed as Annexure-A on record and to direct the Registry to notify the said Form No.71 in the Notice Board of the High Court in terms of Rule 169 of the Companies (Court) Rules, 1959 and other ancillary reliefs. This Court by an order dated 15-7-2003 made in C.A.No.5761 of 2003 in R.C.C.No.13 of 2000 permitted the Official Liquidator to sell the properties of the Company situated at Sy.Nos.587 and 588 at Kondamadugu village, Bibinagar, Nalgonda District. The sale of the properties came to be confirmed in favour of M/s.Jain Irrigation Systems Limited on 27-10-2003 for a sum of Rs.4,07,00,000/-. Upon receipt of the sale consideration, possession of the auctioned assets were delivered to M/s.Jain Irrigation Systems Limited on 25-3-2004. As per the direction of this Court, Official Liquidator declared dividends to the secured creditors of the Company (in Liqn) namely IDBI, United Bank of India and Workmen Union. An extent of Ac.1.40 and Ac.17.10 along with movable assets of the Company have been sold and realized Rs.1,75,90,000/-. After the sale of the land and plant, the Official Liquidator adjudicated the amounts payable to the creditors after adjusting the interim dividends. Annexure ‘B’ of the application details the dividends declared to the secured and unsecured creditors. Actual amounts to be payable to the secured creditors out of the realized amounts of Rs.2,26,05,640.18 are detailed in Annexure ‘B’ which are as hereunder:- ACTUAL AMOUNTS TO BE PAID TO SECURED CREDITORS/WORKMEN/PREFERENTIAL CREDITOR/UNSECURED CREDITORS AFTER ADJUSTING INTERIMs/DIVIDENDs Name Amount admitted debt Amount eligible as dividend Interims Balance to be paid IDBI 165,051,743.00 55,620,753.06 38,228,000.00 17,392,753.06 UBI 4,386,748.00 1,119,946.87 3,004,000,00 (1,884,053.13) Gram Panchayat 90,553.00 90,553.00 90,553.00 Asian Barries (P) Ltd. 1,200,040.00 376,699.64 376,699.64 Apple Credit Corp.Ltd. 13,176,719.08 4,136,249.86 4,136,249.86 Workmen 2,314,785.62 2,314,785.62 1,705,401.00 609,384.62 TOTAL 183,905,803.08 61,344,202.43 41,232,000.00 22,605,640.18 Delay in filing Form No.71 of the Companies (Court) Rules, 1959 has occurred because of the pendency of the application filed by Apple Credit Corp.Limited. Delay in filing Form No.71 was condoned as per order in C.A.No.966 of 2011. Notice to respondents came to be ordered on 29-8-2011. Despite notices being served on the respondents, none appeared to resist the application. Heard learned Counsel appearing for the applicant and perused the affidavit filed in support of the application. No objections have been received from any quarter to take the certificate in Form No.71 on record. In that view of the matter, the application is ordered and certificate in Form No.71 filed as Annexure ‘A’ has been taken on record. Registry is directed to notify the said Form No.71 in the Notice Board of this Court in terms of Rule 169 of the Companies (Court) Rules, 1959. A dividend of 33.70% is declared to IDBI in respect of realization of secured assets i.e., Land and Buildings and Plant and Machinery and Free Hold Properties (open land). A similar dividend of 100% is declared to the preferential/workmen unsecured portion and at 31.39% to unsecured creditors on free hold properties of the Company, in all aggregating to a sum of Rs.2,26,05,640/- as detailed in the statement marked as Annexure ‘B’. United Bank of India – R.2 is directed to refund an amount of Rs.18,84,053/- to the Official Liquidator towards excess interim dividend paid beyond the eligible amount. The Official Liquidator is authorized to open a separate dividend account in Punjab National Bank and to pay the dividend to entitled creditors out of the said account in terms of Rule 290 of the Companies (Court) Rules, 1959. Publication of notice of dividend in newspapers is dispensed with. The Official Liquidator is authorized to send individual notice of dividend to the entitled creditors in Form No.138 along with receipt and Form No.139. The Official Liquidator is authorized to transfer the unpaid dividend, if any, remaining in the dividend account, after the expiry of six months period to Company’s Liquidation Account in terms of Section 555 of the Companies Act, 1956. In case of any of the workmen is no more, the Official Liquidator is permitted to disburse the same to his/her legal representative on production of Family Member Certificate or such other Certificate issued by the Revenue Authorities instead of producing a succession certificate as regard his/her right to receive dividend on behalf of the deceased workmen and also upon furnishing personal indemnity in terms of Rule 280 of the Companies (Court) Rules, 1959. Accordingly, Company Application is ordered. ________________________ B.Seshasayana Reddy, J 19th September, 2011 smr