Ifci Ltd vs Official Liquidator Of Ms.Gangavathi ... on 22 June, 2012

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Karnataka High Court

Ifci Ltd vs Official Liquidator Of Ms.Gangavathi ... on 22 June, 2012

Bench: Ravi Malimath

                          1


   IN THE HIGH COURT OF KARNATAKA, BANGALORE

            ON THE 22ND DAY OF JUNE 2012

                       BEFORE

        THE HON'BLE MR. JUSTICE RAVI MALIMATH

                C.A. No. 557 OF 2012
                          IN
            COMPANY PETITION NO.66/1997

BETWEEN

    IFCI LTD
    NO.7, 2ND CROSS, CSI COMPOUND
    MISSION ROAD
    BANGALORE- 27

                                ... APPLICANT

(BY SRI. H VENKATESHA DODDERI, ADVOCATE)

AND :

    OFFICIAL LIQUIDATOR OF
    M/S GANGAVATHI SUGAR MILLS
    LTD ( IN LIQUIDATION)
    ATTACHED TO HIGH COURT OF KARNATAKA
    CORPORATE BHAVAN, 26-27, 12TH FLOOR
    RAHEJA TOWERS, M G ROAD,
    BANGALORE- 01
                             ... RESPONDENT

(BY SRI. K S MAHADEVAN & V JAYARAM, ADVOCATES)

     THIS   COMPANY   APPLICATION   FILED   UNDER
SECTION 446(1)(2) AND 537 OF THE COMPANIES ACT,
1956 READ WITH RULE 9 OF THE COMPANIES (COURT)
RULES, 1959, PRAYING TO DIRECT THE OFFICIAL
LIUQIDATOR TO DISTRIBUTE THE SALE PROCEEDS ON
ADHOC/ITERIM BASIS THAT IS LYING WITH THE OFFICIAL
LIQUIDATOR.
                                2


    THIS COMPANY APPLICATION COMING ON FOR
ORDERS THIS DAY, THE COURT MADE THE FOLLOWING:-

                          ORDER

This is an application filed under Section 446(1) and 2 and 537 of the Companies Act, 1956 read with Rule 9 of the Companies ( Court) Rules, 1959 seeking for a direction to the Official Liquidator to distribute the sale proceeds on adhoc/interim basis that is lying with the Official Liquidator.

2. Heard both counsels.

3. It is contended that the company (in liquidation) was wound up by order dated 31.1.2005 in Company Petition No.66/1997. By the order dated 2.12.2011, the Official Liquidator was permitted to sell the assets of the company. The assets of the company were sold in an auction held on 30.1.2012 for a sum of Rs.45.90 crores. That the applicant is one of the secured creditors of the company (in liquidation) and some of the other secured creditors have also assigned their debt to the applicant. 3

4. On hearing both counsels and in view of the assets having realised for a sum of Rs.45.90 crores, I am of the considered view that an adhoc payment could be made to the applicant. In the circumstances, as an interim measure, it would just and appropriate to direct the Official Liquidator to release a sum of Rs.20.00 crores as adhoc payment, subject to filing of an undertaking by the applicant company for the said amount.

5. The Company Application is accordingly disposed off.

Sd/-

JUDGE Msu

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Karnataka High Court