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of <h1>Appeal Dismissed: Appellants Must File Claims with Official Liquidator; Preferential Payment Denied, Stand with Creditors.</h1> <h3>MRS. USHA JAIN & ANR. Versus M/s VIGNESHWARA DEVELOPWELL PVT LTD</h3> MRS. USHA JAIN & ANR. Versus M/s VIGNESHWARA DEVELOPWELL PVT LTD - TMI Issues:1. Exemption application (CM APPL. 65644/2024)2. Delay in filing appeal (CM APPL. 65645/2024)3. Appeal against rejection of release of deposited amounts4. Company petition for winding up5. Entitlement to preferential payment6. Withdrawal of winding up petition7. Maintainability of application for withdrawal of deposited amount8. Rights of appellants in the winding up processExemption Application (CM APPL. 65644/2024):The exemption application was allowed subject to all just exceptions, and the application was disposed of.Delay in Filing Appeal (CM APPL. 65645/2024):The delay of 52 days in filing the appeal was condoned based on the reasons stated in the application, and the application was disposed of.Appeal Against Rejection of Release of Deposited Amounts:The appellants appealed against the rejection of their application for release of amounts deposited by the respondent company-in-liquidation. The appellants had deposited an amount for the purchase of a commercial unit but were not paid the entitled amount by the company. The company deposited the amount in court during winding-up proceedings, and the appellants were directed to file their claim with the Official Liquidator for the admitted amount due to them.Company Petition for Winding Up:The appellants filed a company petition for winding up the company due to non-payment of debts. Subsequently, the company was wound up, and the Official Liquidator was appointed. The appellants, along with other creditors, were directed to approach the Official Liquidator with their claims.Entitlement to Preferential Payment:The court held that once the winding-up process had commenced, the appellants were not entitled to preferential payment over other creditors. The appellants were required to stand with other creditors for recovering their dividends in accordance with the law.Withdrawal of Winding Up Petition:The appellants did not withdraw their winding-up petition, but the court found that even if it had remained pending, it would serve little purpose as no funds could have been disbursed to them during the winding-up process. The winding-up petition filed by the appellants became infructuous once the company was wound up.Maintainability of Application for Withdrawal of Deposited Amount:The court found that the application filed by the appellants seeking withdrawal of the deposited amount in a disposed of company petition was not maintainable. The appellants were directed to file their claim with the Official Liquidator for the due amount.Rights of Appellants in the Winding Up Process:The court held that the appellants were not entitled to any other relief and directed them to file their claim with the Official Liquidator for the admitted amount due to them. The Official Liquidator was directed to proceed with admitting the claim and making disbursements according to the relevant sections of the Companies Act.
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