OFFICIAL LIQUIDATOR OF VAJRA CEMENTS AND MINERALS (P.) LTD. Vs. KARNATAKA STATE INDUSTRIAL INVESTMENT AND DEVELOPMENT CORPN. LTD.

JUDGEMENT

(1.) THE instant application is filed by the Official Liquidator on behalf of the Company -in -liquidation under section 446 of the Companies Act. The prayer in the application is to direct the respondent to furnish details of the interest accrued on the sale proceeds of Rs. 75,00,000/ - and to direct the respondent to deposit Rs. 5,00,000/ - out of the sale proceeds of Rs. 75,00,000/ -. Heard the learned counsel of the parties and perused the application papers.

(2.) THE Company in liquidation was ordered to be wound up on 16 -6 -2004 in Co. P. No. 178/2000. Prior to the same, the respondent which is one among the secured creditors of the Company -in -liquidation has taken possession of the assets belonging to the Company -in -liquidation and has thereafter sold the same for a sum of Rs. 75,00,000/ -. The objection filed by the respondent herein would indicate that the sale proceedings has been conducted after obtaining leave in C.A. No. 37/2004. However, insofar as the instant prayer sought in the application, the respondents have indicated that in addition to the respondents, there are two other secured creditors viz., the Karnataka State Financial Corporation ('the KSFC' for short) and the Corporation Bank. It is stated that out of the sum of Rs. 75,00,000/ - which was realised, the respondent has appropriated a sum of Rs. 20,00,000/ - on 31 -3 -2004. A sum of Rs. 10,29,000/ - has been appropriated by KSFC on 05 -8 -2004 and further a sum of Rs. 25,04,000/ - has been appropriated by the Corporation Bank on 05 -6 -2004. In addition a sum of Rs. 25,000/ - was deposited with the Official Liquidator on 03.07.2004 towards the initial expenses of the liquidation proceedings. Thus the total of Rs. 55,58,000/ - has been thus appropriated so far, leaving a balance of Rs. 19,42,000/ -. The respondents state that the said amount has been retained to meet the other liabilities and to take care of the eventualities and statutory liabilities once the company is one way or the other wound up.

(3.) HENCE , with the above clarification and with a direction to the respondent to deposit the sum of Rs. 5,00,000/ - with the Official Liquidator in four weeks from the date of receipt of a copy of this order, the application is allowed in part.