2020 (9) TMI 1005 - HC - Companies Law

Auction Sale - Disbursement of the amount lying with the Official Liquidator pursuant to the auction sale - HELD THAT - This Court has perused the report submitted by the Talati Talati, Chartered Accountant dated 24th January 2020 together with Re-verification report dated 18th February 2020 for the claim of IDBI and State Bank of India - In view of the above fact situation, the Official Liquidator is directed to disburse the following amount from the balance lying in the account of the company in liquidation. The official liquidator is directed to verify the details of each of the worker and shall deposit the claim amount of each of the workers in their respective bank accounts directly by IMPS/RTGS/NEFT - The Official Liquidator is further directed that the amount payable to the secured creditors and unsecured creditors shall be deposited within the period of two weeks from the date of receipt this order directly in the bank account of the respective claimants by IMPS/RTGS/NEFT for which the respective advocates are directed to provide details of the bank account to the official liquidator at the earliest. Application disposed off.

Summary

Issues:
Disbursement of amount by Official Liquidator to various creditors based on verification reports.

Analysis:
The High Court of Gujarat heard company applications by State Bank of India and Textile Labour Association for the disbursement of funds held by the Official Liquidator following an auction sale. The court had previously directed the Official Liquidator to invite claims from various classes of creditors and appoint a Chartered Accountant for verification under Section 530 of the Companies Act, 1956. The Chartered Accountant submitted a verification report on claims by secured creditors, workers, and unsecured creditors. The report detailed the amounts owed to each claimant based on the verification process.

Subsequently, objections were raised by IDBI Bank and State Bank of India regarding their claims. The Chartered Accountant provided re-verification reports for these claims, specifying the revised amounts payable to each bank. The Official Liquidator also received a revised claim from State Bank of India, which was verified by the Chartered Accountant.

The Official Liquidator reported a balance of approximately ?47,00,00,000 in the company's account as of February 29, 2020. Seeking court directions, the Official Liquidator requested disbursement to secured creditors, workers, and unsecured creditors based on the verification reports. After consensus among all parties, the court ordered the Official Liquidator to disburse specific amounts to each claimant based on the verified claims.

The court directed the Official Liquidator to disburse amounts to claimants such as IFCI, workers, IDBI, State Bank of India, M/s. Siddhi Corporation, and Chimanlal Jivraj bhai Kapuriya. The Official Liquidator was instructed to verify worker details and deposit their claim amounts directly into their bank accounts. The amounts due to secured and unsecured creditors were to be deposited within two weeks directly into their bank accounts. The court disposed of the relevant company applications and associated civil application in light of the directions provided.