THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.988 of 2011 Date:05th September, 2011 Between: M/s.Vaishu Engineering Industries Limited (in liquidation), rep. by the Official Liquidator, High Court of A.P., Hyderabad. …Applicant *** THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.988 of 2011 ORDER: This Company Application has been taken out by the Official Liquidator representing M/s.Vaishu Engineering Industries Limited (in liquidation), under Sections 457(1)(e) r/w.Sec.460(4) of the Companies Act, 1956, (for short, ‘the Act’) r/w. Rules 9, 275 and 276 of the Companies (Court) Rules, 1959, (for short, ‘the Rules’) seeking a direction for declaring and disbursing of dividend at the rate of 7.29143% in a rupee to 69 workmen of the Company (in liquidation) as proposed in Annexure-C to the application and the allied reliefs. 2. This Court, by order, dated 22.07.1999, while answering the reference made by B.I.F.R. in R.C.C.14 of 1998, this Court ordered winding of M/s.Vaishu Engineering Industries Limited (In liquidation) and appointed the Official Liquidator attached to this Court as its liquidator. The secured creditors of the Company (in liquidation) having stood outside the winding up, seized and sold the assets of the Company (in liquidation), subject to the condition that they will contribute proportionately towards the workmen dues. Accordingly, the four secured creditors of the Company (in liquidation) have deposited a sum of Rs.29,11,100/- for payment to the workmen, as the dues of the workmen stand at pari pasu to that of the secured creditors. The claims of the workmen have been adjudicated and allowed. This Court by order, dated 19.01.2009, passed in Company Application No.1622 of 2008, permitted the Official Liquidator to pay the dividend at the rate of 35.94678% in a rupee, to 69 workmen. Subsequent to the order, an amount of Rs.5,09,156/- has been deposited by the APSFC as per orders passed by this Court on 25.03.2010 in C.A.No.521 of 2003. Hence, this Application seeking a direction to the Official Liquidator for declaring and disbursing the dividend at the rate of 7.29143% in a rupee to 69 workmen. 3. Since the workmen dues have already been settled and first dividend has been declared as per orders passed in Company Application No.1622 of 208 and as the balance amount has been deposited by the APSFC subsequently, it is appropriate to order for declaration and disbursement of dividend to the 69 workmen at the rate of 7.29143% in a rupee and permit the Official Liquidator to open a separate dividend account with Punjab National Bank, Koti Branch, Hyderabad, and deposit therein the sum of Rs.5,90,482/- and disburse the same to the 69 workmen, whose particulars have been mentioned in Annexure-C and whose debts have already been admitted upon adjudication. The notice of payment of dividend be served under certificate of posting and the divided account be kept open till such time the disbursement takes place. The Official Liquidator is granted permission to seek any such further directions as and when needed in that regard. 4. Accordingly, the Company Application is allowed. No costs. _____________________ B.SESHASAYANA REDDY, J Date:05th September, 2011. cs THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.988 of 2011 Date :05th September, 2011