THE HON'BLE Ms. JUSTICE G.ROHINI COMPANY APPLICATION Nos. 300, 301, 302, 303, 304,305, 306, 307, 308, 309, 310, 311, 312, 313, 314, 315, 316, 317, 318, 319, 320, 321, 322, 323, 324, 325, 326, 327, 328, 329, 330 & 331 OF 2011 Dated: 23.03.2011 C.A.No.300 of 2011 M/s. Lakshmi Porcelains Limited, Hyderabad. ..... Applicant C.A.No.301 of 2011 M/s. Midwest Iron & Steel Limited, Hyderabad. …Applicant C.A.No.302 of 2011 M/s. auriferious Aqua Farms Limited, Hyderabad. …Applicant C.A.No.303 of 2011 M/s. Armour Pharmaceuticals Limited, Hyderabad. …Applicant C.A.No.304 of 2011 M/s. A.P.Refractories Limited, Hyderabad. …Applicant C.A.No.305 of 2011 M/s. AMEI Power Limited, Hyderabad …Applicant C.A.No.306 of 2011 M/s. Cytozyme A.P. Limited, Hyderabad. …Applicant C.A.No.307 of 2011 M/s. Republic forge Co. Limited, Hyderabad. …Applicant C.A.No.308 of 2011 M/s. A.P.Scooters Limited, Hyderabad. …Applicant C.A.No.309 of 2011 M/s. Satya Sai Polymers Limited, Hyderabad. …Applicant C.A.No.310 of 2011 M/S. republic Forge Co. Limited, Hyderabad. …Applicant C.A.No.311 of 2011 M/s. Leena Textiles Limited, Hyderabad. …Applicant C.A.No.312 of 2011 M/s. Satya Steel Strips (P) Limited, Hyderabad. …Applicant C.A.No.313 of 2011 M/s. Sri Laxmi Saraswathi Papers Limited, Hyderabad. …Applicant C.A.No.314 of 2011 M/s. Ultra Packaging Limited, Hyderabad. …Applicant C.A.No.315 of 2011 M/s. A.P.Steels Limited, Hyderabad. …Applicant C.A.No.316 of 2011 M/s. Nirup Synchrome Limited, Hyderabad. …Applicant C.A.No.317 of 2011 M/s. Sunrise Oleo Chemicals Limited, Hyderabad. …Applicant C.A.No.318 of 2011 M/s.ACME Fluoro Polymers Limited, Hyderabad. …Applicant C.A.No.319 of 2011 M/s. Montana International Limited, Hyderbad. …Applicant C.A.No.320 of 2011 M/s. Ranka Cables Limited, Hyderabad. …Applicant C.A.No.321 of 2011 M/s. Rikvin Floors Limited, Hyderabad. …Applicant C.A.No.322 of 2011 M/s. Midwest (I) Industries Limited, Hyderabad. …Applicant C.A.No.323 of 2011 M/s. Malwala Oils Limited, Hyderabad. …Applicant C.A.No.324 of 2011 M/s. Guardian Papers Limited, Hyderabad. …Applicant C.A.No.325 of 2011 M/s. Omnitrode Aditya electrodes Limited, Hyderabad. …Applicant C.A.No.326 of 2011 M/s. Shanti Wires (P) Limited, Hyderabad. …Applicant C.A.No.327 of 2011 M/s. Hindustan Magnetics Limited, Hyderabad. …Applicant C.A.No.328 of 2011 M/s. Jagadambay Agri Genetics Limited, Hyderabad. …Applicant C.A.No.329 of 2011 M/s. Regency Diaper Industries Limited, Hyderabad. …Applicant C.A.No.330 of 2011 M/s. Sai Priyadarshini Estates Pvt., Limited, Hyderabad. …Applicant C.A.No.331 of 2011 M/s. Anasuya Spinners Limited, Hyderabad. …Applicant THE HON’BLE Ms. JUSTICE G. ROHINI COMPANY APPLICATION Nos. 300, 301, 302, 303, 304, 305, 306, 307, 308, 309, 310, 311, 312, 313, 314, 315, 316, 317, 318, 319, 320, 321, 322, 323, 324, 325, 326, 327, 328, 329, 330 & 331 OF 2011 COMMON ORDER : All these applications are filed by the Official Liquidator representing the respective companies under liquidation (32 in total) seeking permission to make the payment as interim relief and priority expenses to the workmen and secured creditors of the said companies. The Official Liquidator also seeks permission to open a separate dividend account to make the payments to the concerned creditors of the companies under liquidation on or before 31.03.2011. I have heard Sri M.Anil Kumar, learned counsel appearing for the Official Liquidator and perused the common affidavit filed in support of all the applications. As could be seen from the material available on record, all the companies on whose behalf the present applications are filed are presently under liquidation and the Official Liquidator attached to this court is acting as their Liquidator. Pursuant to the orders of winding- up, the assets of the said companies were sold by the Official Liquidator and the claims were invited from the creditors of the said companies in liquidation. The adjudication of the claims received from the creditors in respect of 18 companies (applicants in C.A.Nos.300, 303, 306, 307, 308, 309, 311, 312, 313, 315, 317, 320, 326, 327, 328, 329, 330 & 331 of 2011) was completed and the Certificates in Form No.71 were filed by the Official Liquidator in this Court for taking the same on record in terms of Rule 167 of the Companies (Court) Rules, 1959 and to declare the dividends to the entitled creditors. Out of the said 18 companies, orders were already passed by this Court in respect of 13 companies (applicants in C.A.Nos.300, 307, 308, 311, 312, 313, 317, 320, 326, 327, 328, 330 & 331 of 2011) thereby taking on record the respective Certificates in Form No.71 and granting permission to the Official Liquidator to declare and disburse the dividends to the workmen and secured creditors of the said companies. The learned counsel for the Official Liquidator states that the steps are in progress to open necessary dividend accounts to distribute the dividends to the eligible creditors of the said 13 companies. It is also stated that with regard to the 5 companies (i.e., the applicants in C.A.Nos.303, 306, 309, 315 & 329 of 2011), though the adjudication of the claims received from the creditors has already been completed and the Certificate in Form No.71 has also been filed in the Court, the necessary orders are yet to be passed by this Court. It is stated in the common affidavit filed in support of the applications that so far as the remaining 14 companies are concerned (applicants in C.A.Nos.301, 302, 304, 305, 310, 314, 316, 318, 319, 321, 322, 323, 324 & 325 of 2011), the claims received from the creditors are yet to be adjudicated. However, as per the orders of this Court passed from time to time, some of the secured creditors of the said companies were paid the interim relief out of the amounts realized from the sale of the assets of the said companies. It is also stated that the secured creditors of the companies in respect of which the adjudication of claims from the creditors has already been completed have been making requests to the Official Liquidator to disburse the dividends before the end of the financial year 2010-2011 so as to reduce their non-performing assets at the end of the financial year. It is stated that similar requests have been received from the secured creditors of the companies, the claims of which are yet to be adjudicated, to consider payment of dividends before the end of financial year 2010-2011 pending payment of the dividend in the regular process. In view of the said requests received from the secured creditors especially Banks and Financial Institutions, the present applications came to be filed by the Official Liquidator seeking permission of this Court to declare and disburse the dividends as interim relief to the secured creditors out of the amounts available to the credit of the respective companies subject to admission of their debt by the Official Liquidator on adjudication. It is also explained by the Official Liquidator that the necessary undertakings will be obtained from the secured creditors of those companies where Certificates in Form No.71 have not yet been filed. Draft undertaking and receipt have been enclosed to the applications (Annexures A & B) and it is explained by the Official Liquidator that the dividends will be paid only to those creditors who are agreeable to furnish such undertakings. The list of companies where the Official Liquidator has already filed the Certificate in Form No.71 together with the particulars of the dividends which were already declared to the entitled creditors of the companies in liquidation and the dividends for which the applications for necessary sanction are pending before this Court are furnished in Annexure-C enclosed to the present applications. Similarly the details of the funds available to the credit of the companies in respect of which the Certificates in Form No.71 are yet to be filed, the claims filed by the creditors, the charge they hold and the details of the interim relief they are seeking are furnished in detail company-wise for all the companies in para-3 of the common affidavit filed in support of the present applications. A perusal of the status report filed in para-3 with regard to the said companies where Certificate in Form No.71 is yet to be filed shows that all the creditors who are seeking interim orders are holding pari passu charge on the assets of the respective companies in liquidation. The amounts payable to those creditors proportionately have also been indicated in the status report of each company. Having regard to the facts and circumstances noticed above, it is clear that there can be no impediment for payment of interim relief to the creditors of the companies in respect of which the Form No.71 Certificates have already been taken on record by this Court. Even with regard to the companies in respect of which the Form No.71 Certificate has not yet been taken on record and the other companies in respect of which Form No.71 Certificate has not been filed so far, in view of the fact that the interim relief is purely temporary pending payment of the dividend in the regular process and that the financial year is coming to an end on 31.03.2011, I deem it appropriate to permit the Official Liquidator to disburse the interim relief as proposed to the entitled creditors before closing of the financial year subject to furnishing the undertaking in the form enclosed to the applications as Annexure-A. Accordingly, all the Company Applications are disposed of permitting the Official Liquidator to pay interim relief to the creditors of the companies in respect of which Form No.71 Certificates are already filed (as proposed in Annexure-C) as well as the creditors of the companies in respect of which the Certificates in Form No.71 are yet to be filed (as proposed in paragraph-3 of the affidavit herein). The Official Liquidator is also hereby permitted to open a separate dividend account and to pay the dividends to the entitled creditors of 18 companies under liquidation as shown in Annexure-C subject to submission of Annexure-A - undertaking and Annexure-B - receipt to the Official Liquidator. The Official Liquidator is also permitted to pay the interim relief to the entitled creditors in respect of 14 companies in liquidation from the P/D account of the Official Liquidator subject to submission of undertaking (Annexure-A) and receipt (Annexure-B). All the Applications are accordingly disposed of. _____________ G. ROHINI, J Date: 23.03.2011 KLP