THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.1580 of 2011 30th September, 2011 Between :- M/s.Southern Transformers and Electricals Limited (in Liqn) Rep.by the Official Liquidator, High Court of Andhra Pradesh, Hyderabad .. Applicant THE HON'BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.1580 of 2011 ORDER:- This application has been filed by the Official Liquidator representing M/s.Southern Transformers and Electricals Limited (in Liqn) under Section 457 (1)(e) read with Section 460(4) of the Companies Act, 1956 read with Rules 9, 275 and 276 of the Companies (Court) Rules, 1959 seeking declaration of dividend to 18 workmen of the Company (in Liqn) at 100%, amounting to Rs.2,98,159/- along with interest at 4% p.a., from 21-11-1996, aggregating to a sum of Rs.4,75,093/-. This Court by an order dated 24-2-1999 made in R.C.C.No.3 of 1998 directed for winding up of M/s.Southern Transformers and Electricals Limited and appointed the Official Liquidator attached to this Court as its Liquidator. The secured creditor i.e., APSFC obtained permission from this Court to remain outside the liquidation proceedings subject to certain conditions as per order dated 7-3-2011 in C.A.No.107 of 2000. The secured creditor sold the plant and machinery for a sum of Rs.30,50,000/-. The sale came to be confirmed by this Court as per orders in C.A.Nos.1406 of 2004 and 1551/2004. The secured creditor/APSFC had also sold the land and building for a sum of Rs.5,12,00,000/- and the said sale came to be confirmed by this Court as per orders in C.A.No.146 of 2006. This Court directed the Official Liquidator as per order dated 5-1-2006 in C.A.No.1706 of 2005 to invite the claims from the creditors of the Company (in Liqn). In response to the said notice, APIDC Limited, Hyderabad; Indian Bank, Tirupati; R.Venkatratnam; Workmen Union (18 workmen); Commercial Tax, Tirupati; M/s.Sharavathy Petro Chemicals (P) Limited; ESI, Hyderabad; and M/s.Swastik Insulated Wires & Strips Runchi, submitted their claims. The Official Liquidator adjudicated their claims and issued Form No.69/70 i.e., Notice of Admission/Rejection of Proof of Debt to the concerned creditors. The Workers Union has filed a joint application in Form No.67 and claimed a sum of Rs.47,62,255/- on 23- 5-2002. The claim of the workmen came to be adjudicated by the Official Liquidator by issuing Form No.69 i.e., Notice of Admission/Rejection of Proof of Debt to the Workmen Union admitting a sum of Rs.2,98,158.92 P.S., as a secured debt and Rs.23,839/- as an unsecured debt, as rejecting the balance claim amount. This Court by order dated 27-2-2009 made in C.A.No.140 of 2009 has taken on record Form No.71. APSFC deposited an amount of Rs.4,03,867.75 P.S., towards the workmen portion and liquidation expenses of the Company. Hence, this application. Heard learned Counsel appearing for the applicant and perused the material brought on record. APSFC deposited an amount of Rs.4,03,868/-. As on this day, the total amount available with the Official Liquidator to meet the claims of the workmen is Rs.4,75,094/-. In that view of the matter, the application is ordered declaring dividend to 18 workmen of the Company in liquidation amounting to Rs.2,98,159/- along with interest at 4% per annum from 21-11-1996 aggregating a sum of Rs.4,75,093/-. The Official Liquidator has to open a separate dividend account in Punjab National Bank and to pay the dividend to the workmen out of the said account in terms of Rule 290 of the Companies (Court) Rules, 1959. Publication of notice in newspapers is dispensed with. The Official Liquidator has to send individual notice of dividend to the workmen in Form No.138 along with Form No.139. The Official Liquidator has to transfer the unpaid dividend, if any, remained in the dividend account, after expiry of six months period, to the Company’s Liquidation Account in terms of Section 555 of the Companies Act, 1956. The Official Liquidator is authorized to pay the dividend due to the deceased workmen/creditor to his/her legal heirs upon production of such legal heirs a family member certificate issued by Mandal Revenue Officer or such other certificate instead of producing a Succession Certificate as regards 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, the Company Application is ordered. _________________________ B.Seshasayana Reddy, J 30th September, 2011 smr