M/s. Jagadambay Agri Genetics Limited, Rep., by its Official Liquidator v. Department could not be adjudicated and the same remained pending

I have heard Sri M.Anil Kumar, learned counsel for the Official Liquidator. It is true that the certificate in Form No.71 should be filed within three months from the date of fixing for submission of proofs. However the explanation offered by the Official Liquidator in the affidavit filed in support of the application shows that the delay was occasioned for genuine reasons and there is no reason to hold that the delay had occurred in the office of the Official Liquidator deliberately or on account of negligence. Rule 167 read with Rule 7 of the Companies (Court) Rules, 1959 confers very wide powers for enlarging the time fixed by the rules to meet the ends of justice. It is also relevant to note that the condonation of the delay in the present case does not adversely affect the rights of any of the parties, but on the other hand it would enable the winding up proceedings to reach the logical conclusion. Hence, I deem it appropriate to condone the delay in filing the Certificate in Form No.71. As could be seen from the affidavit filed in support of the application, as on date a sum of Rs.46,01,022.33 p.s. is available to the credit of the company in liquidation and the Official Liquidator proposes to declare and disburse dividend to the entitled creditors of the company @ 18.62 % in a rupee aggregating to a sum of Rs.38,28,377.13 ps. only to the secured creditors namely State Bank of India and the National Horticulture Board out of the realization of the assets of the company in liquidation. I have also perused the detailed statement enclosed to the application as Annexure-B furnishing the calculation of amount available for dividend and proposed distribution. The material available on record shows that the dividend proposed by the Official Liquidator is proper and in order. Accordingly, the delay in filing the Certificate in Form No.71 is hereby condoned and the said certificate is taken on record with a direction to the Registrar to notify the same as provided under Rule 169 of the Companies (Court) Rules, 1959. The Official Liquidator is also hereby permitted to declare and disburse dividend as proposed. All other reliefs sought are also hereby granted and accordingly, both the applications are disposed of. No costs. ______________ G.ROHINI,J Date : 18.01.2011 KLP