THE HON'BLE Ms. JUSTICE G.ROHINI COMPANY APPLICATION No. 1535 of 2010 Dated: 24.12.2010 Between: M/s. Andhra Pradesh Scooters Limited, Hyderabad. …Applicant THE HON’BLE Ms. JUSTICE G. ROHINI COMPANY APPLICATION No. 1535 of 2010 O R D E R : This is an application filed under Section 460(4) of the Companies Act, 1956 seeking permission to the Official Liquidator representing M/s. Andhra Pradesh Scooters Limited, the company in liquidation, to declare a second dividend to the secured creditors and workmen of the said company and for other reliefs as under: i. declare a 2nd dividend towards interest @ 4% p.a. for one (1) Year amounting to Rs.1,09,54,649-72 to eligible 5 secured creditors & 503 workmen of the company, whose claims have been adjudicated and Form No.71 taken on record vide C.A.No.658/10 dated 23.08.2010 as per Annexure-A. ii. permit the Official Liquidator to dispense with the publication of notice of declaration of dividend in Newspapers. iii. Permit the Official Liquidator to send notices to workmen through their union and to secured creditors as per Annexure-A. iv. Permit the Official Liquidator to pay dividend during six months period after notices are issued. v. Permit the Official Liquidator to open a separate dividend account and keep it in force for a period of six months. vi. Allow the Official Liquidator to remit the dividend which remains unpaid after six months into the Companies Liquidation Account to the credit of the Government of India. vii. Permit the Official Liquidator to pay the dividend to the deceased workman to his legal heirs on furnishing necessary proofs such as legal heir certificate/family member certificate issued by concerned authority viz., MRO along with submitting necessary indemnity bond. viii. Authorize Official Liquidator to take all necessary actions and steps which are incidental to declaration and payment of dividend and to effectively implement the orders of this Hon’ble Court in that regard. ix. Permit the Official Liquidator to dispense with the adjudication of claims of other creditors who are not likely to receive dividends so as to dissolve the company after accomplishment of proposed dividends. x. Order that the costs of this application do come out of the Estate of the Company (in Liqn., ) I have heard the learned counsel appearing for the Official Liquidator. The material available on record shows that by order dated 18.08.1994 made in RCC.No.5 of 1993, this Court directed winding up of M/s.A.P. Scooters Limited and the Official Liquidator attached to this Court was appointed as its liquidator. Even during the course of winding up proceedings, the Official Liquidator had taken possession of the assets comprising of land and buildings and plant and machinery of the company in liquidation and sold the same for a sum of Rs.3,125 lakhs and Rs. 360 lakhs respectively. Thereafter, the Official Liquidator made interim payments to the secured creditors of the company in liquidation to the tune of Rs.1,800 lakhs in two instalments in March, 2007 and September, 2008. In the affidavit filed in support of the application, it is stated that after completing the adjudication of the claims received from the creditors of the company in liquidation, the Official Liquidator had filed the certificate in From No.71 in this Court and the same was taken on record by order dated 26.12.2008 in C.A.No.1664 and 1671 of 2008, wherein the Official Liquidator was also permitted to declare and disburse the first dividend to the eligible secured creditors and workmen of the company in liquidation. Accordingly, the first dividend was paid. Thereafter, the Official Liquidator received the individual claims from three workmen of the company in liquidation and the said claims were also adjudicated and admitted. Pursuant thereto, C.A.No.658 of 2010 was filed seeking permission to vary the Form No.71 and to include the names of the said three workmen and to declare the first dividend to them. The said application was ordered on 23.08.2010 and accordingly, the first dividend was paid to the said three workmen also. It is further explained by the Official Liquidator that 100% admitted secured debt of workmen and secured creditors was paid by the Official Liquidator along with interest @ 4% p.a. in terms of Rule 197 of the Companies (Court) Rules 1959 and since the sale proceeds available are not sufficient, the other claims of the company in liquidation pertaining to preferential creditors and unsecured creditors had not been taken up for adjudication. While stating that at present, a sum of Rs. 115.50 lakhs is available to the credit of the company in liquidation and no further assets are available for sale, it is proposed by the Official Liquidator to declare a further interest @ 4% p.a. for one more year to the eligible five secured creditors and 503 workmen of the company in liquidation which amounts to Rs.1,09,54,649-72 as shown in Annexure-A. Hence, the present application seeking permission to declare and disburse interest at 4% p.a. for one more year to the secured creditors and workmen and for other reliefs mentioned above. The Official Liquidator also seeks permission to dispense with the adjudication of claims of other creditors who are not likely to receive dividends so as to dissolve the company after accomplishment of the proposed dividends. The learned counsel representing the Official Liquidator states that the dividends proposed to be declared and disbursed, the particulars of which are furnished in Annexure-A are in order. Having regard to the afore noted facts and circumstances explained in the affidavit in support of the application, I deem it appropriate to permit the Official Liquidator to declare a second dividend as proposed as well as the other consequential reliefs as sought by the Official Liquidator. Accordingly, the company application is ordered as prayed for. _____________ G. ROHINI, J Date: 24.12.2010 Ivd/KLP