IFCI LTD. Vs. A.P. SCOOTERS LTD.

JUDGEMENT

(1.) THIS application is filed by M/s. IFCI, IDBI and Standard Chartered Bank under Sections 457 and 529A of the Companies Act, 1956 ("the Act", for brevity) read with Rule 9 of the Companies (Court) Rules, 1959. The following relief is prayed:

(2.) THE three applicants are secured creditors of M/s. A.P. Scooters Ltd. The said company was ordered to be wound up by this Court by an order dated August 18, 1994, in R.C.C. No. 5 of 1993. The official liquidator attached to this Court was appointed as liquidator, who took possession of the assets on January 24, 2006, from the receiver appointed by the High Court of Judicature, Mumbai. As ordered by this court, the official liquidator sold the assets of the company in liquidation. An amount of Rs. 31.25 crores was realised by sale of land and buildings and an amount of Rs. 3.60 crores was realised by sale of plant and machinery. When the liquidation proceedings are pending, an application was moved by these three secured creditors for interim payment. All order was passed by this Court on March 29, 2007, for payment of Rs. 561.50 lakhs to all the secured creditors. The applicants again moved C. A. No. 1101 of 2007 for disbursement of at least 50 per cent. pending adjudication of claims by the official liquidator. This application was dismissed, directing the official liquidator to complete the adjudication. Yet again present application is filed.

(3.) LEARNED standing counsel for the applicants vehemently and strenuously contends that even according to the official liquidator, an amount of Rs. 27.63 crores is lying to the credit of the company and therefore there cannot be any objection to make interim payment of 50 per cent, to the three applicants herein. Per contra learned Counsel for the official liquidator submits that unless and until claim of workmen is adjudicated in accordance with Sections 529, 529A and 530 of the Act, no further amount can be released or disbursed to the secured creditors. He would like this Court to take into consideration that the entire amount of principal advanced by IFCI, IDBI and Standard Chartered Bank was already paid and therefore he would urge that they have to await final adjudication.