IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF AUGUST, 2019 BEFORE THE HON’BLE MR. JUSTICE P.B.BAJANTHRI COMPANY APPLICATION No.63/2019 IN COMPANY PETITION No.13/1994 BETWEEN:
Official Liquidator of M/s. Sree Pavana Alloys Private Limited (in liqn.) High Court of Karnataka “Corporate Bhavan” No.26-27, 12th Floor, Raheja Towers, M.G.Road, Bengaluru 560 001. … Petitioner (By Sri K.S. Mahadevan, Smt. Revathi Adinath Narde, Sri Jagadeesh Goud Patil and Sri Shrishail Navalgund, Advocates for O.L.) AND:
Nil … Respondent This company application is filed under Section 481 of the Companies Act, 1956 read with Rule 9 of the Companies (Court) Rules 1959 praying to permit the O.L. to declare and pay Rs.3,90,237/- as second dividend to KSFC, the secured creditor of the Company @ 1.64 paise in a rupee on Rs.2,36,55,320/- and etc.
This Company application coming on for orders this day, the Court made the following:
ORDER The instant application is filed by the Official Liquidator seeking the following prayers:-
“(a) To permit the Official Liquidator to declare and pay Rs.3,90,237/- as second dividend to KSFC, the Secured Creditor of the Company @ 1.64 paise in a rupee on Rs.2,36,55,320/- and dispense with the requirement of a paper publication under rule 270 of the Companies (Court) Rules, 1959 in view of the fact that KSFC is the only creditor to who, the dividend is payable.
(b) To permit the Official Liquidator retain an amount of Rs.8,500/- to be incurred towards incidental expenses of dissolution such as Audit fee, Central Government Commission, etc. and transfer any left out balance amount to the Estate and Establishment Fund A/c.
(c) Dissolve M/s. Sree Pavana Alloys Private Limited (In Liqn.,) under Section 481(1) of the Companies Act, 1956 and a copy of the said order be directed to be filed with the Registrar of Companies, Bengaluru as required under Section 481(2) of the Companies Act, 1956 after compliance of payer (1) supra and (d) Pass such other order or orders as this Hon’ble Court may be deem fit and proper in the circumstances of the case.”
2. The Company, M/s.Sree Pavana Alloys Private Limited (in liqn.,) was ordered to be wound up by this Court by its order dated 29.01.1998 passed in COP No.13/1994. The Official Liquidator has thereafter taken the charge of affairs of the Company in liquidation. Insofar as the immovable properties owned by the Company in liquidation, M/s.Karnataka State Financial Corporation (KSFC), which is the secured creditor have appropriated the amount after properties were sold by KSFC. However, before appropriation of the said amount, in view of the order dated 04.02.1994 passed by this Court in C.A.No.270/1998 under Section 446(2)(b) and 537(1) of the Companies Act, 1956 read with Rule 9 of the Companies (Court) Rules, 1959, which has been recognized and recorded its right as secured creditor to stand outside the proceedings for winding up of enforcement of its security for realization of the amount due to it from the Company and confirm the sale of land and building in favour of Sri Meeranji, Prop:M/s.Everest Plastic Machine Tools, Bangalore for an amount of Rs.34.00 lakhs and sale of plant and machinery in favour of Sri D.S.Anand for an amount of Rs.7.35 lakhs.
3. On 16.09.2011, KSFC has deposited a sum of Rs.41,35,000/- with the Official Liquidator (towards sale proceeds) as per Annexure-D. Pursuant to the order dated 04.03.2014 passed in OLR No.474/2013, the Official Liquidator has invited claims from the creditors of the Company (in liquidation) by issuing an advertisement of notice to creditors in ‘Times of India’, Karnataka Edition and ‘Vijaya Karnataka’, Karnataka Edition dated 15.05.2014 while fixing the last date for submission of claims on or before 20.06.2014. The extract of summary of claims adjudicated is reflected in para 5.2, which reads as
4. In para 7.1 of the application, the applicant has stated that the Official Liquidator has disbursed a sum of Rs.56,50,140/- to the first charge secured creditor i.e. M/s.KSFC. In para 7.2 of the application, the applicant has given the details of total funds available with the Company, i.e. Rs.3,98,737/-. He intends to retain a sum of Rs.8,500/- and the balance amount of Rs.3,90,237/- to be paid to KSFC.
5. Learned counsel for the applicant submitted that since sole creditor is involved in the present litigation and therefore, he has sought waiver under Rule 270 of the Companies (Court) Rules, 1959.
6. Accordingly, it is ordered that the Company M/s. Sree Pavana Alloys Private Limited shall stand dissolved in terms of Section 481(1) of the Companies Act, 1956. The Official Liquidator shall deposit the available sum of Rs.3,90,237/- to the Estate and Establishment Fund Account maintained by the Official Liquidator.
The application is accordingly disposed of.
Sd/- JUDGE VGR