THE HON’BLE SRI JUSTICE B.SESHASAYANA REDDY Company Application No.1616 of 2011 (Dated : 20-10-2011) Between: M/s.A.P Steels 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.1616 of 2011 ORDER: This application has been taken under Section 460 (4) of the Companies Act, 1956 read with Rules 9 & 168 of the Companies (Court) Rules, 1959 seeking permission to vary the list of creditors of the Company submitted in Form No.71 of the Companies (Court) Rules, 1959 and to amend the amounts admitted to APIDC. 2. This Court by order dated 10-04-1996 made in R.C.C.No.2/ 1995 directed winding up of M/s.A.P. Steels Limited and appointed Official Liquidator as its Liquidator. This Court directed the Official Liquidator to invite claims against the Company by publishing a notice in Eenadu on 08-04-1998. In response, the Official Liquidator received a consolidated claim of 537 workmen in Form No.67 filed by A.P. Steels Employees Joint Action Committee claiming a sum of Rs.1,96,95,482.89 ps. along with 14 independent claims from the workmen aggregating to a total of 551 claims. The said claims were adjudicated and a notice in Form No.69, dated 28-09-1999 was issued to the workmen union in respect of 463 workmen admitting a sum of Rs.1,36,93,958/- with interest at 4% under Rule 156 of the Companies (Court) Rules 1959 as a secured debt and Rs.58,13,839/- as unsecured debt, while rejecting the claims of 88 workmen in toto. As per the directions of this Court, the Official Liquidator sold the assets of the company in liquidation and realized Rs.18,77,15,000/-. This Court by order dated 15- 04-2002 directed the Official Liquidator to declare 1st dividend at 50% in a rupee vide order dated 15-04-2002 in C.A.No.860/2001 in R.C.C.No.2/1995. The Official Liquidator paid a sum of Rs.68,46,979/- to the workmen. Thereafter, two workmen namely; B. Ranga Rao and T.L.S.S.Kumar approached this Court and sought inclusion of their names in the consolidated claim of workmen filed in Form No.67. The same application came to be allowed on 30-03-2003 vide C.A.No.713/ 2001. The claims of B.R. Ranga Rao and T.L.S.S. Kumar came to be adjudicated in all admitting a sum of Rs.1,05,459.65 ps. as secured debt and Rs.7,505/- as unsecured debt. This Court by order dated 03-09- 2003 passed in C.A.No.491/2003 declared as 1st dividend at 50% in a rupee out of their admitted secured debt totalling to a sum of Rs.52,729-83 ps. and the same was paid to the workmen. Hence a total sum of Rs.68,99,708.98 ps. was declared and paid as 1st dividend to the 465 workmen, excluding the unclaimed dividend of 12 workmen amounting to Rs.1,59,471-15 ps. The Official Liquidator filed form No.71 and this Court took it on record vide order in C.A.No.1520/2010, dated 22-12-2010. The interest amount relating to workmen at Sl.No.8 of Column No.5 of the said Form No.71 was not quantified and no figure was mentioned. The Official Liquidator calculated the interest and shown total sum of Rs.1,46,84,092.96 ps. as secured debt and the same has been mentioned in varied Form No.71. The secured creditors of the Company namely; Canara Bank, Andhra Bank, Syndicate Bank, UCO Bank, IDBI, IFCI and ICICI have filed C.A.Nos.277, 279, 281 & 756/2003 seeking release of interim payments out of the sale proceeds of current assets of the Company in liquidation. This Court by order dated 25-03-2003 & 24-10-2003, directed the Official Liquidator to make interim payments to the secured creditors and accordingly, the Official Liquidator paid the amounts aggregating to a sum of Rs.3,91,46,500/- as 1st interim dividend and Rs.8,61,72,185.12 ps. as 2nd interim dividend on 28-03-2011. The Official Liquidator invited claims from the secured and other creditors of the Company as per the orders of this Court, dated 11-03-2003, by publishing a notice in “Eenadu” and “Indian Express”, fixing the last date for receipt of claims as 23-05-2003. In response to the said notice, the Official Liquidator received 5 claims excluding the claims, which are filed by the creditors voluntarily pursuant to the notice dated 08-04-1998. In all 43 claims were received by the Official Liquidator. The claims of the workmen and secured creditors were admitted as secured debt. This Court by order dated 22-12-2010 in C.A.No.1520/2010 approved the list filed in Form No.71. Thereafter, APIDC filed Company Appeal No.4/2011 and C.A.No.654/2011 against the adjudication orders of the Official Liquidator. After pending the appeal, a joint meeting on the issues raised by the APIDC came to be conducted in the presence of representatives of Canara Bank and Workmen Union. Basing on the minutes of the meeting, the claim of APIDC came to be readjudicated. Consequent on the readjudication of the claim of the APIDC, the Company Appeal No.4/2011 and C.A.No.654/2011 came to be dismissed on 10-08- 2011. The Official Liquidator adjudicated the claim of APIDC and issued Form No.69, dated 23-09-2011 admitting the claim of APIDC to a tune of Rs.3,54,73,425.50ps. as secured debt, and Rs.10,95,58,517.76ps. as an unsecured debt while rejecting the balance claim out of Rs.6,51,18,593.39ps.. In view of the adjudication of the claim of APIDC, the Form No.71 already filed need to be varied. Hence this application. 3. Heard learned Standing Counsel appearing for the applicant and perused the material brought on record. 4. The circumstances under which Form No.71 already taken on record is required to be varied have been stated in the application. Apparently, the variation has become eminent since the claim of APIDC came to be readjudicated. 5. In that view of the matter, the application is allowed permitting the Official Liquidator to vary the list of the creditors of the Company submitted before the Court earlier. 6. Accordingly, the application is ordered. The varied Form No.71 is required to be notified as provided under Rule 169 of the Companies (Court) Rules, 1959. ______________________________ JUSTICE B.SESHASAYANA REDDY Date: 20.10.2011 mrb