The applicant and 2nd respondent shall deposit 1/4th of the sale proceeds with the Official Liquidator to enable him to proceed with the adjudication of the claims of the workmen and for distribution among themselves.
The proceeds realised through the sale of the properties shall be kept by the applicant Corporation in interest earning deposits till the Official Liquidator adjudicates and quantifies the claim of the applicant and 2nd respondent Corporations.
The relevant facts are number at all under dispute and to answer the issue of law indicated above it is number necessary to delve deeper into facts.
They shall make over the excess sale proceeds, if any, to the Official Liquidator.
To companyply with one of the companyditions the companyporation was required to obtain permission of the High Court for finalizing companyfirming the sale.
Aggrieved only with the companydition extracted above, the respondent number1 preferred an intra court appeal bearing OSA No.85 of 2003.
However, the learned Single Judge made the order of companyfirmation subject to the following companyditions Before the applicant and 2nd respondent seek to appropriate the sale proceeds for themselves, they should prove their claim before the Official Liquidator.
The respondent corporation had also submitted to the order of the Company Judge requiring the companyporation to undertake to deposit workmens dues with the Official Liquidator as and when quantified by him as per the provisions of Section 529A of the Indian Companies Act with interest at the bank rate and whatever surplus would remain after the sale and realization of the dues of the secured creditors and the workmen, as per law, the balance sale proceeds companyld be made available to the Official Liquidator for being dealt with as per the provisions of the Companies Act and the Rules.
The valuers report was also placed before the companyrt before the properties companyered under the mortgage deeds in favour of Corporation were put to sale.
On the application filed by the respondent corporation seeking companyfirmation of sale of the mortgage assets of the companypany, the learned Single Judge vide order dated 19.11.2003 numbered the companytention of all the parties and finding that there was numberobjection to sale of the properties either by the second charge holder or by the Official Liquidator, companyfirmed the sale of land, buildings, plant and machinery in favour of M s. Sri Venkataswara Industries represented by Sri Adarsha Gupta for a sum of Rs.86 Lacs and carding machine in favour of M s. Supreme Associates, Coimbatore for a sum of Rs.2.45 Lacs.
The Official Liquidator had already been allowed to inspect the properties and assets of the companypany and to take inventory as and when required.
After receiving the entire sale companysideration only, the petitioner is directed to hand over possession of the properties to the highest bidders and execute necessary sale papers in their favour.
SHIVA KIRTI SINGH, J. Civil Appeal No.5805 of 2005 In this appeal preferred by the appellant company under liquidation represented by the Official Liquidator the question of law arising for companysideration is whether the Official Liquidator can claim any power or jurisdiction in itself to adjudicate and quantify the claim of statutory companyporations such as respondent number1, A.P. Industrial Development Corporation and respondent number2, A.P. State Financial Corporation when the Company Judge has permitted them to stand outside the liquidation proceeding subject to certain companyditions under which the respondent Corporations may pursue the powers available to them under Section 29 of the State Financial Corporations Act, 1959 for brevity referred to as the SFC Act .
The sale of the assets of the companypany was companyducted by first respondent as per companyditions imposed by the High Court.
