OFFICIAL LIQUIDATOR OF

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 10th DAY OF JANUARY, 2018

BEFORE

THE HON’BLE MR. JUSTICE A.S.BOPANNA

COMPANY APPLICATION NO.522/2017 IN COMPANY PETITION NOS.67/1995 & 105/1995

BETWEEN :

Official Liquidator of M/s.Rekha Cements and Chemicals Ltd., (In Liquidation), High Court of Karnataka, “Corporate Bhavan”, No.26-27, 12th Floor, Raheja Towers, M.G.Road, Bengaluru – 560 001. ...APPLICANT

(By Smt.Lakshmi Iyengar, Adv.)

AND :

NIL …RESPONDENT . . . .

This company application is filed under Section 481 of the Companies Act, 1956 read with Rule 9 of the Companies (Court) Rules, 1959 praying to permit the Official Liquidator to pay the balance amount of Rs.3,52,555/- to the secured creditors @ 0.22 paisa in a rupee to as 2nd and final dividend as proposed in para No.4 and etc.

This company application coming on for orders, this day, the Court made the following:

- 2 -

O R D E R

The Official Liquidator has filed the instant application seeking that the Official Liquidator be permitted to pay the balance amount of Rs.3,52,555/- to the secured creditors at the rate of 0.22 paisa in a Rupee as the second and final dividend. On doing so the remaining amount if any, permitted to be kept in the Estate and Establishment Fund Account to defray the cost towards statutory expenses. In that background, the Official Liquidator seeks that the Company M/s. Rekha Cements and Chemicals Limited be ordered to be dissolved in terms of Section 481 of the Companies Act.

The Company M/s. Rekha Cements and Chemicals Limited was ordered to be wound up by order dated 02.04.2002 in Company petition Nos. 67/1995 & 105/1995. The Official Liquidator has thereafter taken charge of the affairs of the company and initiated the recovery proceedings. A sum of Rs.86,00,000/- was recovered through the sale proceeds which was affirmed through the order dated 02.02.2017 in

- 3 -

OLR No.123/2016. Out of the amount realized, a sum of Rs.76,49,597/- was paid to the three secured creditors namely M/s. KSIIDC, M/s. KSFC and UCO Bank. Out of the remaining amount of Rs.6,31,775/- the Official Liquidator has indicated that a sum of Rs.2,16,220/- is required towards payment of the income tax liability on accrued interest on fixed investment and also towards payment of Auditors fee etc. Thus the remaining amount of Rs.3,52,555 is available to be paid to the three secured creditors by declaring the second dividend at 0.22 paisa in a Rupee. In that regard a sum of Rs.1,43,526/- is to be paid to KSIIDC, a sum of Rs.1,20,534 is to be paid to the KSFC and a sum of Rs.88,495/- is to be paid to UCO Bank. On payment of the said amount no further amounts would be available nor any further property for recovery is available.

In that view no purpose would be served in retaining the proceedings. As such the prayer made by the Official Liquidator is to be granted. Accordingly, the

- 4 -

Official Liquidator is permitted to pay the balance amount of Rs.3,52,555/- to the three secured creditors at 0.22 paisa in a rupee as the final dividend and the remaining amount be credited to the Estate and Establishment Fund and utilize towards payment of income tax liability, CGC, Audit fee etc. In that view, it is ordered that the company M/s.Rekha Cements and Chemicals Ltd., be dissolved in terms of Section 481 of the Companies Act and a copy of this order be filed with the Registrar of Companies. The application is accordingly allowed.

Sd/- JUDGE

SPS