2021 (8) TMI 721 - HC - Companies Law

Seeking extension of time for making the payment of dividend to the remaining contributors - seeking directions regarding publishing of advertisements and notices and to make payment to advertisement agency from the fund of the company (In Liquidation) - HELD THAT - The Official Liquidator is directed to make the payment of dividend to the remaining contributors strictly in accordance with law within a period of 60 days from today. The Official Liquidator shall be required to publish one more advertisement in daily news paper Rajasthan Patrika (Hindi) and Hindustan Times (English) through advertisement agency publish the notice in Form No.63 under Rule 148(1) of the Companies (Court) Rules, 1959, while making the payment to advertisement agency from the fund of the company - Application disposed off. Seeking direction regarding typist-cum-clerk to do the work of typing etc. - HELD THAT - The application is allowed. The Official Liquidator shall do the needful, as sought to be made, strictly in accordance with law. Seeking increase in professional fees - HELD THAT - The application is allowed. The fee of the lawyer as proposed i.e. ₹ 25,000/- per month is allowed and the same shall be payable from the date of application. Seeking to release the claimed and settled amount to Shri Inder Kumar Agarwal of M/s Govindram Sanjaykumar by way of opening dividend account - HELD THAT - The prayer is allowed and the Official Liquidator shall take necessary steps, strictly in accordance with law - Application allowed. Seeking to release the claimed and settled amount to Shri Gyan Chand Chhallani of M/s. Shankeshwar Spintex by way of opening dividend account - HELD THAT - The prayer is allowed and the Official Liquidator shall take necessary steps, strictly in accordance with law - Application allowed. Seeking appropriate direction to pass the appropriate order for payment ₹ 20,39,993/- plus interest @ 6.75% P.A. current rate of fixed deposit prevalent as already have been paid to other workmen from 23.02.2010 to 10.07.2014 for 1599 days - HELD THAT - The instant application is allowed. The Official Liquidator shall make the necessary payment, strictly in accordance with law. Seeking to pay second Dividend to contributories - HELD THAT - The application is allowed. The Official Liquidator shall pay the second dividend to the contributories, strictly in accordance with report of the Panjab National Bank, Paota 'C' Road, Jodhpur, if the same is payable in law. Seeking to permit the Official Liquidator to file Income Tax Return in the matter of M/s. Mewar Textile Mills Limited (In Liquidation) so as to enable it to claim refund of Tax Deducted at Sources (TDS) - seeking to permit Official Liquidator to pay the audit fees - HELD THAT - The application is allowed. The Official Liquidator shall do the needful, strictly in accordance with law. Seeking claim of settling subsequent claim to be winding up in accordance with law alongwith interest on the belated payment - HELD THAT - This Court is of the opinion that at best the applicant being unsecured creditor is entitled for 4% interest per annum - the instant application is disposed of with a direction to the Official Liquidator to pay 4% interest to the applicant from the date of winding up i.e. 23.02.2010 till the date of declaration of dividend which is 08.04.2019 entitled to an unsecured creditor in accordance with Rule 179 of the Companies Court Rules. Seeking claim of settling subsequent claim to be winding up in accordance with law alongwith interest on the belated payment - HELD THAT - This Court is of the opinion that at best the applicant being unsecured creditor is entitled for 4% interest per annum - the instant application is disposed of with a direction to the Official Liquidator to pay 4% interest to the applicant from the date of winding up i.e. 23.02.2010 till the date of declaration of dividend which is 08.04.2019 entitled to an unsecured creditor in accordance with Rule 179 of the Companies Court Rules. List these matters on 11.8.2021.

Summary

Issues Involved:
1. Application for extension of time for payment of dividend to contributors.
2. Application for appointment of typist-cum-clerk on a contractual basis.
3. Application for an increase in professional fee.
4. Application for releasing claimed amount to a specific individual.
5. Application for releasing claimed amount to another specific individual.
6. Application for payment of specific amount with interest.
7. Application for payment of second dividend to contributories.
8. Application for permission to file Income Tax Return and pay audit fees.

Issue 1: Application for extension of time for payment of dividend to contributors
The Official Liquidator sought an extension of time due to COVID-19 for making dividend payments to contributors. The Court directed the Official Liquidator to make the payments within 60 days and publish advertisements in newspapers as required by law. The application was disposed of accordingly.

Issue 2: Application for appointment of typist-cum-clerk on a contractual basis
The Official Liquidator requested the appointment of a typist-cum-clerk on a contractual basis for six months. The application was allowed, and the Official Liquidator was directed to proceed as per law.

Issue 3: Application for an increase in professional fee
The Official Liquidator sought an increase in professional fee from ?12,500 to ?25,000 per month. The Court allowed the application, and the increased fee was approved to be payable from the date of the application.

Issue 4: Application for releasing claimed amount to a specific individual
An application was made to release a specific amount to an individual after condoning the delay. The Court allowed the prayer, and the Official Liquidator was directed to take necessary steps in accordance with the law.

Issue 5: Application for releasing claimed amount to another specific individual
Similar to the previous issue, an application was made to release a claimed amount to another individual after condoning the delay. The Court allowed the prayer, and the Official Liquidator was instructed to proceed in accordance with the law.

Issue 6: Application for payment of specific amount with interest
An application was filed for payment of a specific amount with interest. The Court allowed the application, and the Official Liquidator was directed to make the necessary payment strictly in accordance with the law.

Issue 7: Application for payment of second dividend to contributories
The Official Liquidator sought permission to pay the second dividend to contributories. The application was allowed, and the Official Liquidator was directed to proceed as per the report of the bank if payable in law.

Issue 8: Application for permission to file Income Tax Return and pay audit fees
The Official Liquidator requested permission to file Income Tax Returns and pay audit fees from the company's funds. The application was allowed, and the Official Liquidator was directed to proceed in accordance with the law.

In a separate judgment related to unsecured creditors, the Court held that unsecured creditors are entitled to 4% interest per annum as per Rule 179 of the Companies Court Rules. The Official Liquidator was directed to pay the interest from the date of winding up until the declaration of dividend strictly in accordance with the law. The applications were disposed of with this direction and listed for further proceedings.