Liquidation dividend distribution allowed after claim certificate was taken on record and delay was condoned, with individual notices permitted.

In liquidation proceedings, the Court accepted the claim certificate on record, condoned the delay, and permitted declaration and disbursement of dividend from the available funds after retaining amounts required for liquidation expenses. Because creditor claims had already been adjudicated and individual claim forms had been issued earlier, the Court found no impediment to the proposed distribution and allowed the consequential directions for orderly payment of dividend. It also dispensed with publication of notice in newspapers and permitted individual notices to be issued to the identified creditors.

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Issues: Whether the application for declaration and disbursement of dividend in liquidation, together with the prayer to condone delay and take the claim certificate on record, should be allowed.

Analysis: The company was in liquidation and the Official Liquidator placed before the Court the available funds, the amounts to be retained for liquidation expenses, and the balance available for distribution. The claims of the creditors had already been adjudicated and individual claim forms had been issued earlier. In these circumstances, the Court accepted the filing of the claim certificate on record, found no impediment to the proposed distribution, and permitted the consequential directions sought for orderly payment of dividend. The Court also dispensed with publication of notice in newspapers and permitted individual notices to be issued to the identified creditors.

Conclusion: The application was allowed, and the connected interlocutory applications for condonation of delay and taking the certificate on record were also allowed.

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