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[Cites 2, Cited by 0]

Gujarat High Court

Textile Labour Association vs Official Liquidator Of Commercial ... on 7 September, 2020

Author: Bhargav D. Karia

Bench: Bhargav D. Karia

        C/COMA/30/2020                                              ORDER




        IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

              R/COMPANY APPLICATION NO. 30 of 2020

                             With
             R/COMPANY APPLICATION NO. 15 of 2020
                             With
        CIVIL APPLICATION (FOR DIRECTION) NO. 1 of 2020
            In R/COMPANY APPLICATION NO. 15 of 2020
==========================================================
                     STATE BANK OF INDIA
                            Versus
  THE OL OF M/S THE COMMERCIAL AHMEDABAD MILLS LIMITED (IN
                            LIQN)
==========================================================
Appearance:
MR PRANAV G DESAI(290) for the Applicant(s) No. 1
MR BH BHAGAT(153) for the Respondent(s) No. 3
MR DS VASAVADA(973) for the Respondent(s) No. 4
MR VISHAL T. PATEL(6518) for the Respondent(s) No. 2
MR PATHIK M ACHARYA FOR OFFICIAL LIQUIDATOR(16) for the
Respondent(s) No. 1
MR DK PUJ for the Respondent(s) No. 5
==========================================================

 CORAM: HONOURABLE MR. JUSTICE BHARGAV D. KARIA

                              Date : 07/09/2020

                               ORAL ORDER

1. Heard learned advocate Mr. Pranav Desai for the applicant, learned advocate Mr. Pathik Acharya for respondent no.1, learned advocate Mr. Vishal Patel for respondent no.2, learned advocate Mr. B.H. Bhagat for respondent no.3 learned advocate Mr. D.S. Vasavada for respondent no.4 and learned advocate Mr. D.K. Puj for respondent no.5 through video Page 1 of 10 Downloaded on : Sun Feb 14 12:07:14 IST 2021 C/COMA/30/2020 ORDER conference.

2. These company applications are filed by the State Bank Of India and Textile Labour Association for the disbursement of the amount lying with the Official Liquidator pursuant to the auction sale conducted as per the order passed by this Court dated 9th February 2018 in case of Commercial Ahmedabad Mills Ltd., (in liquidation) in Company Application no.60 of 2017.

3. Thereafter, this Court passed an order dated 31st January 2019 in Official Liquidator Report no.81 of 2018 whereby the Official Liquidator of Commercial Ahmedabad Mills Ltd., (in liquidation) was directed to invite claims of classes of creditors i.e. secured creditors, workers, preferential creditors etc., and to appoint the Chartered Accountant and to obtain the verification report for disbursement under Section 530 of the Companies Act, 1956 (for short "the Companies Act").

4. Pursuant to the aforesaid order dated 31st January 2019, the Official Liquidator invited claim of all classes of creditors i.e. secured creditors, workers, preferential creditors, unsecured creditors and shareholders / contributories of the Commercial Ahmedabad Mills Ltd., (in liquidation) on 18th February Page 2 of 10 Downloaded on : Sun Feb 14 12:07:14 IST 2021 C/COMA/30/2020 ORDER 2019 by publishing advertisement in Gujarat Samachar, Gujarati daily and Times of India, English daily, all editions of Gujarat.

5. Pursuant to the aforesaid advertisement, the Official Liquidator received the claims from the secured creditors, workers and unsecured creditors.

6. Thereafter, the official liquidator appointed M/s. Talati & Talati, Chartered Accountant vide letter dated 25th March 2019 for verification of claims of all classes of creditors.

7. M/s. Talati & Talati, Chartered Accountant submitted the verification report dated 24th January 2020 of secured creditors, workers and unsecured creditors of the company (in liquidation) under Section 530 of the Companies Act. Summary of the said verification report is as under :­ Details of claims processed under Section 530 of Companies Act, 1956 and Company (Court) Rules, 1959 :­ Particulars Amount in Claimant Reference Rupees Interest on 11,67,882 IFCI Conclusion­I Principal Payment from (11.10.1989 to 30.03.2018) Amount of Security 4,00,553/­ Conclusion­I Page 3 of 10 Downloaded on : Sun Feb 14 12:07:14 IST 2021 C/COMA/30/2020 ORDER and Insurance Charge Interest on 2,81,03,886/­ IDBI Conclusion­II Principal Payment from (11.10.1989 to 30.03.2018) Amount of Security 14,06,331/­ Conclusion­II and Insurance Charge Interest on 9,93,77,016/­ SBI Conclusion­ Principal Payment III from (11.10.1989 to 28.03.2018) Leave Encashment, 25,88,58,661/­ Workers Conclusion­IV Bonus to the date of closure i.e. 28.10.1985 to 11.10.1989, Notice Salary, Interest at simple rate of 4% from 11.10.1989 to 09.02.2018) on Outstanding Salary, Gratuity and Retrenchment as on 11.10.1989 till date of payment & interest at simple rate 4% from 11.10.1989 to 09.02.2018) on Outstanding notice salary, leave salary and bonus as on 11.10.1989 till date payment.

Reimbursement    of       2,51,00,000/­ M/s.Siddhi              Conclusion­V
Municipal Tax Paid                      Corporation
to        Ahmedabad
Corporation
Lease    Rent    and            36,075/­        Chimanlal      Conclusion­VI
Interest thereon                               Jivrajbhai
                                                 Kapuriya
Total                     41,44,50,404/­


   8. The     official liquidator thereafter, by letter

dated 31st January 2020 forwarded the report of the Chartered Accountant to all the concerned Page 4 of 10 Downloaded on : Sun Feb 14 12:07:14 IST 2021 C/COMA/30/2020 ORDER parties for offering their comments with regard to acceptance of the recommendations of the Chartered Accountants or to raise objections, if they are in disagreement of such report.

9. In response to such letter, objections were received from IDBI bank and therefore, the Official Liquidator obtained re­verification report dated 18th February 2020 from the Chartered Accountant which was submitted on 20th February 2020 in respect of the claim of the IDBI bank and conclusion given by the Chartered Accountant in the said report is as under :­ "Conclusion :­ Based on above Discussion, Observation, Comment and Analysis, in our view, the claim of "IDBI Bank" need to be process as under :­ Particulars Amount in Rupees Reference Amount of Interest as 2,81,03,886/­ per claim lodged (Interest @ 4% p.a. from 11.10.1989 to 30.03.2018) (As per revised claim vide Letter No. IDBI Bank/NMG/ABO/OL/391/ 2019­20 dated 04.02.2020) Amount of Security and 16,06,331/­ Insurance Charge as per claim Lodged Amount of Interest 2,81,03,886/­ Conclusion II considered as payable Annexure B of our (I) report dated 24.01.2020 Amount of Security and 16,06,331/­ Insurance Charge considered as payable Page 5 of 10 Downloaded on : Sun Feb 14 12:07:14 IST 2021 C/COMA/30/2020 ORDER (II) Total (I + II) 2,97,10,217/­

10. The official liquidator also received a letter dated 6th February 2020 from the State Bank of India with a request to consider the revised claim of Rs.10,77,03,280.24 instead of Rs.9,93,77,016/­. The official liquidator thereafter, received re­verification report dated 18th February 2020 from the Talati & Talati, Chartered Accountant in respect of the claim of the State Bank of India as under :­ Particulars Amount in Rupees Reference Amount of Interest as 10,77,03,280/­ per revised claim lodged (Interest @ 4% p.a. from 11.10.1989 to 28.03.2018) Amount of Interest 10,77,03,280/­ Annexure­I considered as payable Total 10,77,03,280/­

11. The official liquidator in the report dated 13th March 2020 after narrating the above facts in para­17 thereof has stated that there is a balance of Rs.47,00,00,000/­ (approximately) as on 29th February 2020 in the account of the company in liquidation.

12. In view of the above facts, the official liquidator has prayed for passing the following order/directions as per para­18 of the report dated 13th March 2020.

Page 6 of 10 Downloaded on : Sun Feb 14 12:07:14 IST 2021 C/COMA/30/2020 ORDER
"18. That, in view of the above facts and circumstances the Official Liquidator seeks following orders/directions of this Hon'ble Court :­ a. This Hon'ble Court may be pleased to direct the Official Liquidator to disburse the amount of as per verification report 24.01.2020 and re­verification dated 18.02.2020 of M/s. Talati & Talati, Chartered Accountants to the Secured Creditors, Workers & Unsecured Creditors of the Company in Liquidation under Section 530 of the Companies Act, 1956, mentioned at para - 11, 14 & 16 herein above, after hearing to all concerned parties in the matter."

13. After hearing the learned advocates for the respective parties, all the advocates have agreed by consensus for disbursement of the amount as per para­18 of the official liquidator report dated 13th March 2020. Accordingly, this Court has perused the report submitted by the Talati & Talati, Chartered Accountant dated 24th January 2020 together with re­verification report dated 18th February 2020 for the claim of IDBI and State Bank of India.

14. In view of the above fact situation, the Page 7 of 10 Downloaded on : Sun Feb 14 12:07:14 IST 2021 C/COMA/30/2020 ORDER Official Liquidator is directed to disburse the following amount from the balance lying in the account of the company in liquidation.



Sr. Claimant              Particulars                     Amount in
No.                                                        Rupees
1.    IFCI      I. Interest on Principal Payment           11,67,882/­

from (11.10.1989 to 30.03.2018) II. Amount of Security and 4,00,553/­ Insurance Charge Total:­ 15,68,435/­

2. Workers Leave Encashment, Bonus to the 25,88,58,661/­ date of closure i.e. 28.10.1985 to 11.10.1989, Notice Salary, Interest at simple rate of 4% from 11.10.1989 to 09.02.2018) on Outstanding Salary, Gratuity and Retrenchment as on 11.10.1989 till date of payment & interest at simple rate 4% from 11.10.1989 to 09.02.2018) on Outstanding notice salary, leave salary and bonus as on 11.10.1989 till date payment.

3. IDBI Amount of Interest as per claim 2,81,03,886/­ lodged (Interest @ 4% p.a. from 11.10.1989 to 30.03.2018) (As per revised claim vide Letter No. IDBI Bank/NMG/ABO/OL/391/ 2019­20 dated 04.02.2020) Amount of Security and Insurance 16,06,331/­ Charge as per claim Lodged Total:­ 2,97,10,217/­

4. SBI Amount of Interest as per 10,77,03,280/­ revised claim lodged (Interest @ 4% p.a. from 11.10.1989 to 28.03.2018) Total :­ 10,77,03,280/­

5. M/s. Reimbursement of Municipal Tax 2,51,00,000/­ Siddhi Paid to Ahmedabad Corporation Corpora tion

6. Chimanlal Lease Rent and interest thereon 36,075/­ Jivraj bhai Kapuriya Page 8 of 10 Downloaded on : Sun Feb 14 12:07:14 IST 2021 C/COMA/30/2020 ORDER Total (1 to6):­ 42,29,76,668/­

15. The official liquidator is directed to verify the details of each of the worker and shall deposit the claim amount of each of the workers in their respective bank accounts directly by IMPS/RTGS/NEFT.

16. Learned advocate Mr. Vasavada appearing for the Taxtile Labour Association states that the details of the bank account of each of the workers is already provided to the official liquidator and the same shall again be provided as expeditiously as possible and preferably within the period of four weeks from today.

17. The Official Liquidator is further directed that the amount payable to the secured creditors and unsecured creditors shall be deposited within the period of two weeks from the date of receipt this order directly in the bank account of the respective claimants by IMPS/RTGS/NEFT for which the respective advocates are directed to provide details of the bank account to the official liquidator at the earliest.

18. With the aforesaid directions, Company Application no.15 of 2020 and Company Application no.30 of 2020 are disposed of.

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19. In view of the disposal of the Company Application no.15 of 2020, no direction is required to be given in connected Civil Application no.1 of 2020 in Company Application no.15 of 2020.

(BHARGAV D. KARIA, J) RAGHUNATH R NAIR Page 10 of 10 Downloaded on : Sun Feb 14 12:07:14 IST 2021