Official Liquidator authorized to distribute sale proceeds to Secured Creditors under Companies Act, 1956

The Court permitted the Official Liquidator to distribute the sale proceeds of Rs. 86 lacs with interest to Secured Creditors under section 529A of the Companies Act, 1956. The distribution included specific amounts for settlement of claims to two banks, as well as payments to workers and professional fees. The Court approved the recommendations in the Official Liquidator's report and allowed for payments to be made to the relevant parties through either cheque or electronic mode. The application was disposed of without any costs being awarded.

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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.

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