COMPA/1967/2011 of M/S.GURDEN PAPERS LIMITED. Vs - on 29 December 2011

COMMON ORDER:-

These two applications have been filed by the Official Liquidatorrepresenting M/s.Guardian Papers Limited (in Liqn) to declare anamount of Rs.95,92,123/- as final dividend to the secured creditors, anamount of Rs.2,58,704/- @ 100% to the preferential creditors and asum of Rs.32,48,565/- @ 5.7822% to the unsecured creditors and forother allied reliefs.

This Court by an order dated 7-11-1989 made in C.P.No.3 of1986 directed for winding up of M/s.Guardian Papers Limited andappointed the Official Liquidator attached to this Court as its Liquidator. The Official Liquidator took possession of the assets of theCompany (in Liqn) and sold the land admeasuring Ac.53.85 cents,building Plant & Machinery for a total consideration of Rs.2.30,01,000/-. The sale came to be confirmed by this Court as per orders dated 10-7-2001 made in C.A.No.375 of 2001. This Court directed the OfficialLiquidator as per order dated 31-1-2001 made in C.A.No.44 of 2002 toinvite the claims from the creditors of the Company (in Liqn). TheOfficial Liquidator received claims from IDBI, IFCI, ICICI, CommercialTax Department, Gram Panchayat, ESI, Rosin House. The claims ofthe creditors came to be adjudicated by the Official Liquidator byissuing Form No.69/70. The three secured creditors namely, IDBI,IFCI and ICICI have a charge on the landed property of the Companyonly to an extent of Ac.29.38 cents and buildings with Plant &Machinery erected thereon. The balance of land admeasuringAc.24.47 cents is freehold and is outside the purview of the propertiesmortgaged to the financial institutions. Out of the total sum ofRs.3,19,03,099-70 P.S. realized out of the sale of assets, a sum ofRs.2,83,95,830-91 P.S., is made available to the mortgaged securedcreditors. ICICI Bank, one of the secured creditors of the Company (inLiqn), had filed C.A.No.17 of 2003 seeking direction to the OfficialLiquidator to disburse the amount. This Court by order dated 7-8-2002directed the Official Liquidator to disburse a sum of Rs.38,31,416/- toICICI Bank. Accordingly, the Official Liquidator disbursed a sum ofRs.97,85,311-16 P.S., to IDBI, Rs.45,15,595-26 P.S., to IFCI andRs.45,02,801-78 to ICICI towards interim dividend on 27-3-2003 and28-3-2011. The Official Liquidator filed Form No.71 together with proofof claims and the memorandum of admission/rejection of claims. Asper Rule 169, upon filing of the certificate in Form No.71, the Registrarshall notify the filing thereon on the notice board along with the certificate and the list of creditors as settled thereto. As there is a delayin filing Form No.71, a separate application being C.A.No.1678 of2011 has been moved and the said application came to be allowed on18-11-2011. Out of the amount now available to the credit of theCompany (in Liqn), the Official Liquidator intends to disburse anamount of 95,92,123/- as final dividend @ 36.44% paise in a rupeeafter adjusting the amount of dividend earlier disbursed to the securedcreditors. Further an amount of Rs.2,58,704/- @ 100% to thepreferential creditor and a sum of Rs.32,48,565/- @ 5.7822% to theunsecured creditors. Hence these applications.

Heard learned Counsel appearing for the applicant and perusedthe applications and Annexures thereto.

Conclusion

The amount available with the Official Liquidator are indicated inthe Annexures. Initially interim dividends were declared to the securedcreditors. The amounts to be declared as dividends have been statedsupra. Since the claims of the creditors have been adjudicated, therecannot be any impediment to take Form No.71 on record.

Accordingly, the Company Applications are allowed taking thecertificate in Form No.71 filed as Annexure-A on record. Registry isdirected to notify the said Form No.71 in the Notice Board in terms ofRule 169 of the Companies (Court) Rules, 1959. The OfficialLiquidator is permitted to declare an amount of Rs.95,92,123/- as finaldividend at 36.44 paise in a rupee after adjusting the dividend amountdisbursed earlier to the secured creditors, an amount of Rs.2,58,704/-at 100% to the preferential creditor and a sum of Rs.32,48,565/- at5.7822% to the unsecured creditors, as detailed in the statementmarked as Annexure-B. The Official Liquidator is authorized to open aseparate dividend account in Punjab National Bank and pay thedividend to the secured creditors and others out of the said account in terms of Rule 290 lot Companies (Court) Rules, 1959. Publication ofnotice of dividend in newspapers is dispensed with. The OfficialLiquidator is authorized to send individual notices of dividend in FormNo.138 along with Form No.139. The Official Liquidator is authorizedto pay the dividend due to any deceased creditor to his legal heirsupon production by such legal heirs, family member certificate or suchother certificate instead of producing a Succession Certificate and alsoupon furnishing personal indemnity, in terms of Rule 280 of theCompanies (Court) Rules, 1959. The Official Liquidator is authorizedto transfer the unpaid dividend, if any, remaining in the dividendaccount, after the expiry of six months period to CompaniesLiquidation Account in terms of Section 555 of the Companies Act,1956.

Accordingly, the Company Applications are ordered.

29[th] December, 2011smr

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B.Seshasayana Reddy, J