2010 (2) TMI 1260 - HC - Companies Law

Summary

Issues involved: Disbursement of sale proceeds to Secured Creditors u/s 529A of Companies Act, 1956.

Summary:
The Judges' Summons sought direction for disbursement of sale proceeds of Rs. 86 lacs with interest to Secured Creditors u/s 529A of Companies Act, 1956. The Official Liquidator provided a detailed statement containing total receipts, payments, provisions, and net balance for distribution. The report recommended specific amounts to be disbursed to Bank of Baroda and Anyonya Co.Op. Bank Ltd. for settlement of claims, as well as payment to workers and professional fees. After hearing all parties, the Court permitted the Official Liquidator to distribute the amounts to Secured Creditors and workers as per the recommendations in the report. The payment process would involve completion of formalities and options for receiving payment via cheque or electronic mode. The application was disposed of with no order as to costs.