TITAN SPRINGS LIMITED IN LIQUIDATION Vs. NIL

JUDGEMENT

(1.) THIS is report placed before the Court by the Official Liquidator in charge of the winding up proceedings of M/s. Titan Springs Ltd. , a company in the process of being wound up pursuant to the order passed by this Court on 29. 8. 1990, is in the context of C. A. 38/98 filed in the two Co. P. 23 and 24 of 1999 and for the purpose of apprising the Court about the factual position for the purpose of apprising the Court about the factual position for the purpose of sharing and distributing of the available assets of the company under liquidation, amongst the secured creditors of the company. M/s Karnataka State Financial Corporation, a secured creditor had filed an application in C. A. 38/98 praying for permission to sell some of the assets of the company which it had taken over in exercise of its statutory powers under Section 29 of the State Financial Corporations Act (the Act for short ).

(2.) IN the context of the various claims that had been put for forth by the secured creditors who are three in number namely M/s. Karnataka State Financial corporation (K. S. F. C. for short), M/s Karnataka State Industrial Investment Development Corporation (M/s. KSIIDC for short) and M/s Canara Bank. This Court, while considering the C. A. 38/98 filed by M/s Karnataka State Financial Corporation, had vide order dated 10. 6. 2002 directed the Official Liquidator to call a joint meeting of al the creditors at his Office and to take a joint decision in the matter of disposal of the assets of the company under liquidation and also regarding the distribution of the amount realized amongst the secured creditors of the company under liquidation. The Official Liquidator through his report has sought permission to place before the Court the outcome of the meetings that had taken place, wherein the Official Liquidator and the secured creditors participated and have submitted a joint report. It is for further orders on the joint report that the Official Liquidator has filed this report before this Court. A copy of the minutes and the joint report prepared at the meeting held on 3. 7. 2002 at the Office of the Official Liquidator wherein, a part from the Official Liquidator the representatives of the three secured creditors were present is produced as Annexure-A to the report of the Official Liquidator.

(3.) THE joint report interalia indicates the manner in which the parties have agreed to share the realization from the sale of the assets of the company, of course subject to approval and further orders by this court and it interalia indicates that the fee payable under Rule 291 of The Company Court Rules, 1959 (the Rules for short) to the Central Government may be paid from out of the amounts accrued to be distributed to the secured creditors and at the rate as stipulated in sub-Rule (4) of Rule 291 of the Rules.