IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD FRIDAY THE FIFTEENTH DAY OF JULY TWO THOUSAND AND TWENTY TWO PRESENT THE HONOURABLE SRI JUSTICE T.VINOD KUMAR COMPANY APPLICATION NO. 16 OF 2022 IN C.P. NO: 113 OF 2002 IN THE MATTER OF THE COMPANIES ACT '1956 AND IN THE MATTER OF M/S MERBANC FINANCIAL SERVICES LIMTIED ( ln linq) Between: M/s Merbanc Financial Services Limited (ln Liqn ), Rep by the Official Liquidator, Attached to the Hon'ble High Court, 1st Floor, Corporate Bhawan. Bandlaguda, Nagole, Hyderabad 500 068. ...Applicant Company Application Under Sections 457 (1) ( e ) and 460 (4) of the Companies Act, 1956 R/w. Rules 275,276 and 290 of the Companies ( Court ) Rules, 1959 praying that this Hon'ble Court may be pleased to l Permit the Official Liquidator to declare and disburse 2nd dividend 23.63percent in a Rupee for an amount of Rs. 56,69,588/- to the Unsecured Creditors against the admitted unsecured debt as per Annexure - E Permit the Official Liquidator to open a separate dividend account in Punjab National Bank and pay the 2nd dividend to Unsecured Creditors out of the said account, in terms of Rule 290 of the Companies (Court) Rules, 1959. Permit the Official Liquidator to dispense with the publication of notice of divldend in newspapers. I i I IV V] VII v t 1X Permrt the Official Liquidator to send lndividual notices of dividend in Form No.138 along with receipt to the Unsecured Creditors of the Company (ln Ligin. ). Permit the Official Liquidator to fix the schedule for making payment Authorize the Official Liquidator to pay dividend due to any deceased creditor to his legal heirs upon production by such legal heirs, a family member certificate issued by MRO or such other certificate instead of producing a succession certificate and also upon furnisrling personal indemnity, in terms of Rule 20 of the Companies (court) Rules, 1959. Permit to Official Liquidator to take all necessary actions and steps which are incidental to declaration and payment of 2nd dividend and to effectively / implement the orders of this Hon'ble Court in tl-ral regard Permit the Official Liquidator to transfer the un-paid dividend. if any. after expiry of 6 (six) months period to Companies Liquidation Account, in terms of Section 555 of the Companies Act, 1956. Order that the costs of this application do come out of th€.assets of lhe Company (ln Liqn.) This Application coming on for orders upon readang the Jud,le's summons and the aff idavit dated '1 9-01-2022 and filed by Sri Varaha Santoshi Jagirdar Official Liquidator in support of the Company application and upon hearing the arguments of Sri J. SRINADH REDDY, Counsel for the Applican. The Court made the following: ORDER THE HON'I}LE SRI JUS'I'ICE'I" VINOD KUMAR COMPANY APPLICAI.ION No. l6 ot2022 In COMPANY PETITION No.ll3 of 2002 ORDER This Application along with Judge's Sumnrons is filed under Section 457 (l) and 460(4) of the Companies Act, 1956 (for short 'the Act') read with Rule 275,276 and 290 of the Companies (Court) Rules, 1959 (for Short 'the Rules'). The Official Liquidator prays for the following reliefs: 'i. Permit the Offcial Liquidator to taty the list of Creditors of M/s.Merbanc Financial Services Limited (in Liqn) b\, adding the runrc of Sri Yogesh Shenoy in second part qf the list and take the varied Form No.7I as per Annexure-D on record. ii. Direct the Registrar to noti,fy the said F-orm No.7l on the notice board of this Court in terms of Rule 169 oJ the Rules. iii. permit the Official Liquidator lo dcclare and disburse 2"t dividend (ti1 23.630% in a ntpee for an amount of Rs.56,69,588/- to the unsecuctl creditors against lhe admitted msecured debt as per 'Anncrure-E . iv. permit the Official Liquidator lo open (t separate diviclend accout in Punjab Nationi,al Bank and pav the 2"d ttividentt to unsecured crcc!itors out of the said account, in terms of Rulc 290 of the Companies (Court) Rules, 1959. v. permit the Official Liquidator to dispense with the publication of notice of dividend in newspapers. vi. permit the Official Liquidator to scnd individual noticcs ol'ditidend in Form No.l38 along with receipt lo lhe unsecured crcditors of the Company (In Liqun). vii- permit the Official Liquidator to .lis the schedule Jbr nnking pa.vmcnt viiii. Authorize the Official Liquidator to pay dividend due to any deceased creditor to his legal heirs upon production by such legal heirs, a 'l .funtil.t' tnember ccrtirtcak issued by MRO or such ollrcr certi,licate instcad of producirtg a succession certilcate and aLso upon furnishing p<'rsonal irtdcmnity, in terms of Rule 280 of the Rules. i.r. pcrmit thc O-fficial Liquidator to take all necessaty actions and steps u.hich arc incidental to declaration and payment of2'" dividend c'nd tct eJ.kctircl.v implement the orders of this Hon'ble Court in that regtrd. .t. Pcrnit thc OLficial Liquidator to transfer the un-paid dividend, i,f an-v, aftcr the cxpiry of 6 (six) monlhs period to Conrpanies Liquidation Account, in tcrms of Section 555 of the Companies Act, 1956. _rl. ordcr that the costs of this application do come out oJ'the assets of thc Company (ln Liqun.)." By the affidavit filed along with the Judge's Summons, the Officiat Liquidator lras stated that as per the order of this Court dt.29-lI-2017 in C.A.Nos.858 and 859 of 2017., the Official Liquidator declared a dividend @ 100% to the secured and preferential creditors and a dividend @37.27 paise in rupee to unsecured creditors of their admitted amounts. Learned Oflicial Liquidator submits that after such disl)ursement and after deducting an amount of Rs.27,423.49 Ps towards Central Government Fees, auditors fees etc, an amount of Rs.56,97,01 1.49 Ps available to the credit of the Company in liquidation, and as 100% amount was already disbursed to the secured creditors and professional creditor towards their admitted amount, the Offrcial Liquidator: proposes to make various payments as noted above. Olficial Liquidator has now fited the present application to declare and disburse 2nd installment of dividend @ 23.63% to the unsecured -) creditors amounting to Rs.56,69,588/- as per 'Annexure-B' annexed to this application. Ileard leamed Standing Counsel appearing fbr the Offlcial Liquidator and perused the record. Since this Court by order dt.29-11-2017 in C.A.Nos.858 and 859 of 2017 permitted the Official Liquidator to first to pay dividend to the unsecured creditors of their admitted amounts frorn the balance amount available with the Official Liquidator in the year 2011; that as no further claims are stated to have been received by the Olficiat Liquidator till date, and having regard to the fact that the said surn is available fbr declaration and disbursement of dividend, permission is accorded to the Official Liquidator to : (i) to vary the list of creditors ol M/s.Merbanc Financial Services Limited(in Liqn) by adding the narne of Sri Yogesh Shenoy as second part of the list and take the varied Fonr No.7l as 'Annexure-D' on record and direct the Registrar to notify the said Form No.7l on the notice board of this Court in terms of Rule 169 of the Rules. (ii) to declare and disburse the 2nd instalment ol dividend (rl 23.63% in a Rupee for an amount of Rs.56,69,588/- to the I 4 unsccured creditors against the admitted unsecured debt as per Annexure-E. (iii) to open a separate dividend account in Punjab National Bank and pay the 2"d dividend to unsecured creditors out of the said account in tenns of Rule 290 of the Rules. Thc Official Liquidator is also permitted to dispense with the publication of notice in news papers since it would entail considerable expenditure. (iu) to send individual notices of dividend in Iiorm No. t38 along with receipt to the unsecured creditors of the Company (ln liqn.) and fix schedule for making payment. (v) to pay dividend due to any deceased creditor to his legal heirs upon production of such legal heirs, a famil y member cerlificate issued by MRO or such other certificate instead ol producing a succession certificate and also upon fumishing personal indemnity, in terms of Rule 280 of the Rutes. (vi) to take all neccssary actions and steps which are incidental to declaration and payment of final dividend and to eflectivcly implement this order, and .5 to transfer the un_paid di (06) rnonths period to,rJ.;;r:ffiffi, in terms of Section 555 of the Act. The officiar Liquidator is arso permitted to meet the cosrs of this application from out of the eshte of the Company_in_Liquidation. This application is ordered accordinslv- No cosrs (vii) 1 / tt I I rRuE coPY I I sD/-K.SRTNTVASA RAO JOINT REGISTRAR SECTION OFFICER To 1. The Official Liquadator, M/s. Merbanc Financial Services Limited (ln Liqn.) Limited (ln Llqn) Office at l"rfloor Corporate Bhawan, Nagole, Bandlaguda Thattiannaram Village Hayathnagar Mandal, Ranga Reddy Dastrict, Telangana State Pin Code 500 680. 2. The Registrar oi Companies, Ministry of Corporate Affairs, Govemment of lndia 2"'l floor Corporate Bhawan, Nagole, Bandlaguda, Thattiannaram Village Hayathnagar Mandat, Ranga Reddy District. Telangana State Pin Code 500 680. 3. The Regional Director, South Eastern Region, Ministry of Corporate Affairs, 3'd floor Corporate Bhawan, Nagole, Bandlaguda, Thattiannaram Village Hayathnagar Mandal, Ranga Reddy Drstrict Telangana State Pin Code 500 680 4. The Section Officer, O.S. Section, High Court for the State of Telangana at Hyderabad. 5. One CC to Sri J. Sreenadh Reddy, Counsel for Official Liquidator, High Court for the State of Telangana at Hyderabad. 6. Two C.D.Copies 7. One Spare Copy ^).tx DATED L5/O7 /2022 ORDER COMPANY APPLICATION NO. 16 0F 2022 IN c.P NO. tL30F 2022 ORDERING THE COMPANY APPLICATION WITHOUT COSTS t.-rr I '.o" .$ q) .l \-?) / \..'o- -+: rcg/ D' % 1il{x I