2016 (3) TMI 789 - HC - Companies Law

Official Liquidator ordered to disburse bank interest from company funds

STATE BANK OF INDIA Versus OFFICIAL LIQUIDATOR OF M-S JECHINS PHARMACEUTICALS LTD AND 1

The court directed the Official Liquidator to disburse the interest amount claimed by the State Bank of India from the company's available funds in ... Interest awarded at the rate of 6% per annum as per the Recovery Certificate to the applicant, being a Secured Creditor - directions to official liquidator to use available funds of sale proceeds of the assets of the Company (in liquidation), which was charged to the applicant-Bank at village Kundal - Held that: The Official Liquidator is permitted to disburse the adjudicated claim amount of ₹ 1,39,65,796.12ps. out of the available funds in the account of the company in liquidation to the applicantState Bank of India under Section530 of the Companies Act, 1956. The State Bank of India shall file the usual undertaking before the office of the Official Liquidator. The Official Liquidator is permitted to make the payment of ₹ 2,05,354/from the account of the Company maintained in his office, to M/s.Navnitlal & Co., Advertising Agency, being the advertisement expenses as per the bill raised by the said Agency dated 28.08.2015. The Official Liquidator is also permitted to make the payment of ₹ 28,625/from the account of the Company to M/s.P.Dalal & Co., Chartered Accountants, as per the bill raised by the said Chartered Accountant, dated 27.11.2015. Issues:1. Direction to Official Liquidator to pay interest to State Bank of India.2. Verification and quantification of claim under Section 530 of the Companies Act, 1956.3. Disbursement of adjudicated claim amount from the available funds of the company in liquidation.4. Conditions for disbursement and filing of necessary undertakings.Analysis:1. The State Bank of India filed an application to direct the Official Liquidator to pay an interest amount of Rs. 1,39,65,796.12ps. as per the Recovery Certificate issued by the DRT, Ahmedabad. The bank, being a Secured Creditor, calculated the interest at 6% per annum on the total amount adjudicated by the DRT. The court, after considering submissions from both parties, granted the direction for the Official Liquidator to disburse the claimed interest amount from the available funds of the company in liquidation.2. The Official Liquidator invited claims from creditors under Section 530 of the Companies Act, 1956, and verified the State Bank of India's claim amounting to Rs. 1,39,65,796.12ps. through a Claim Verification Report prepared by Chartered Accountants. The report also detailed the fund position of the company in liquidation, specifying the amount available for disbursement after setting aside a required sum for compliance with a previous court order.3. Before making any disbursement, the Official Liquidator needed to set aside a specific amount for compliance with a court order. After deducting this sum, an amount was identified to be available for disbursement to the State Bank of India. The court permitted the Official Liquidator to disburse the adjudicated claim amount to the bank, subject to certain conditions and undertakings to be filed by the bank.4. The State Bank of India agreed to file the necessary undertaking before the Official Liquidator for the disbursement of the claimed amount. The court, considering the facts and circumstances of the case, allowed the application in the terms specified, including the disbursement of the claimed interest amount and other specified payments from the company's funds held by the Official Liquidator.This detailed analysis covers the issues raised in the judgment, providing a comprehensive overview of the court's decision and the legal implications involved in the case.