ORDER : 1. Heard learned advocate Mr. Dharmesh Shah for the applicant, learned advocate Ms. Bhoomi Thakore for the Official Liquidator, learned advocate Ms. Nalini Lodha for respondent No.2 and learned advocate Mr. D.K. Nakrani for respondent No.4. 2. This application is filed by the Surendranagar Peoples Co.op Bank Ltd (in Liquidation) with the following prayers : “A. This Hon’ble Court be pleased to pass an order directing the Official Liquidator to disburse an amount of Rs.5,48,94,013/- with running interest at the rate of 16% p.a. as per the Decree passed by the Hon’ble Chamber Judge Court No. 14, City Civil Court, Ahmedabad, Below Exh. 24 dated 16.03.2006 in Summary Suit No. 3105 of 2004 towards outstanding amount as in favour of the applicant/creditor of the company in liquidation. B. Pass such other and further order in the interest of justice that may be deemed fit to this Hon’ble Court in the facts and circumstances of the case.” 3. The applicant-Bank has given funds to the Company [In Liquidation] and the same has not been repaid by the Company. In the year, 2004, the applicant-Bank has filed a Summary Suit No. 3105 of 2004 before the City Civil Court at Ahmedabad and the City Civil Court by order dated 16.03.2006 decreed the suit in favour of the applicant for an amount of Rs.5,48,94,013/- with 16% interest from 16.03.2006 till realization and the decree attained the finality. 4. In the meantime, the Company Petition No. 146 of 2006 has been preferred before this Court against the Company and on 16.05.2008 Official Liquidator came to be appointed by this Court. 5. To dispose of the properties of the Company[In Liquidation], an advertisement was published by the Official Liquidator inviting bids. Thereafter, this Court [Coram: Hon’ble Mr. Justice K.A. Puj, as his Lordship was then] by order dated 01.10.2010 in Official Liquidator Report No. 66 of 2010 confirmed the offer in favour of highest bidder. 6. It appears that the Official Liquidator invited the claims of the creditors and workers of the Company (In Liquidation) in the news papers pursuant to the order dated 05.12.2011 passed by this Court in Company Application No. 483 of 2011. In response, the Official Liquidator received total 48 claims. The Official Liquidator appointed M/s. Darshan A. Shah & Co., Chartered Accountant on 23.02.2012 to verify the claims of the secured creditors and workers. 7. In response, the Official Liquidator received total 48 claims. The Official Liquidator appointed M/s. Darshan A. Shah & Co., Chartered Accountant on 23.02.2012 to verify the claims of the secured creditors and workers. 7. Thereafter, the Official Liquidator appointed M/s. Amal Dutt on 27.08.2012 to verify the claims of secured creditors and workers as the earlier Chartered Accountant denied to carry out the verification work. 8. It appears that thereafter M/s. Amal Datt & Associates, Chartered Accountant submitted the verification report on 06.01.2015. Respondent No.4-Indian Overseas Bank raised objection to the report submitted by the Chartered Accountant on the ground that respondent No.4 and SIDBI have not filed their claim and therefore, their claims are not considered or verified though such claims were submitted before the earlier Chartered Accountant M/s. Darshan A. Shah & Company. 9. The Official Liquidator thereafter obtained re-verification report from M/s. Amal Datt and Associates, Chartered Accountant which was submitted on 30.03.2017 along with Official Liquidator Report dated 12.06.2017. 10. It appears that this Court passed the order dated 02.12.2021 directing the Official Liquidator to file a fresh report to be obtained from Chartered Accountant for disbursement of amount payable to the workers as well as the secured creditors as per the provision of sections 529 and 529A of the Companies Act, 1956. 11. The Official Liquidator pursuant to the aforesaid order received a letter dated 29.01.2022 from M/s. Amal Datt and Associates, Chartered Accountant confirming the earlier verification report dated 30.03.2017. 12. Thereafter, this Court passed the order dated 23.09.2022 directing the Official Liquidator to file a report of the Chartered Accountant with regard to the outstanding dues of the Income Tax Department as per letter dated 12.09.2022 received by the Official Liquidator for Rs.27,69,456/-. 13. In response, the Official Liquidator has filed further report dated 01.12.2022 with following prayers : “a. This Hon’ble Court may be pleased to direct the Official Liquidator make payment of Rs.17,80,278/- to Indian Overseas Bank being Secured Creditors under section 529 of the Companies Act,1956 as per verification report dated 29.11.2022 of M/s. Amal Datt & Associates, Chartered Accountants, as stated para 3 and 5 hereinabove. b. This Hon’ble Court may be pleased to direct the Official Liquidator to kept aside Rs.50,00,000/- towards Central Government Fees, TDS, Future Workmen/Employees claim and Miscellaneous winding-up expenses or such amount as may be appropriated by this Hon’ble Court. b. This Hon’ble Court may be pleased to direct the Official Liquidator to kept aside Rs.50,00,000/- towards Central Government Fees, TDS, Future Workmen/Employees claim and Miscellaneous winding-up expenses or such amount as may be appropriated by this Hon’ble Court. c. This Hon’ble Court may be pleased to direct the Official Liquidator make payment of Rs.24,61,23,002/- to Commercial Tax Department (99.51% Ratio) and Rs.12,11,941/- to Income Tax Department (0.49% Ratio) being Preferential Creditors under section 530 of the Companies Act, 1956 as per verification report dated 29.11.2022 of M/s. Amal Datt & Associates, Chartered Accountants, as stated at para 3 and 7 hereinabove.” 14. It was submitted by learned advocate Ms. Thakore for the Official Liquidator that as per the re-verification report dated 29.11.2022 of the Chartered Accountant, the summary of the dues payable to the workers and the secured creditors are as under : “A. Overriding Preferential Payment under Section 529A of the Companies Act 1956 Option 1: If Claims submitted by Bank of Baroda and Corporation bank are Not fully covered from the realization of the Stocks and Book debts and/ or the Hon High Court does not approve them as secured creditors, then the uncovered portion should be considered as Unsecured Creditors. The secured creditors under such case will be : S. No. Particulars Amount Verified Ratio of disbursement Worker 1. Shri Madhavji Maganji Lakahra 5,24,027 0% (Remarks: Amount has already been disbursed as the oral order of the Hon High Court of Gujarat dated 14.07.2017) Secured Creditors* (Secured against Hypothecation of Stock) 2. Indian Overseas Bank 17,80,278 100.00% 3. Bank of Baroda 18,90,02,532 0.00% 4. Corporation Bank 16,85,18,117 0.00% Total 17,80,278/- 100.00% Considering nothing is available from stock and book debts. Option 2: If claims submitted by Bank of Baroda and Corporation bank are covered by Stock and Book Debts, and /or it gets approval from the Hon. High Court, then it should be considered as Secured Creditors to the extent they are covered by Stock and Book Debts. The secured creditors under such case will be : S. No. Particulars Amount Verified Ratio of disbursement Worker 1. Shri Madhavji Maganji Lakahra 5,24,027 0% (Remarks: Amount has already been disbursed as the oral order of the Hon High Court of Gujarat dated 14.07.2017) Secured Creditors* (Secured against Hypothecation of Stock) 2. Indian Overseas Bank 17,80,278 0.50% 3. Bank of Baroda 18,90,02,532 52.61% 4. Shri Madhavji Maganji Lakahra 5,24,027 0% (Remarks: Amount has already been disbursed as the oral order of the Hon High Court of Gujarat dated 14.07.2017) Secured Creditors* (Secured against Hypothecation of Stock) 2. Indian Overseas Bank 17,80,278 0.50% 3. Bank of Baroda 18,90,02,532 52.61% 4. Corporation Bank 16,85,18,117 46.89% Total 35,93,00,927/- 100.00% - After making payment towards secured Creditors (A), it should be disbursed towards preferential creditors U/S 530. B. Preferential Payment under Section 530 of the Companies Act 1956 S. No. Particulars Amount Verified Ratio of disbursement Preferential Payment 1. Commercial Tax Department 55,95,14,080 99.51% 2. Income Tax Department 27,69,456 0.49% Total 56,22,83,536/- 100.00% After making payment towards Secured Creditors (A) and Preferential Creditors (B), it should be disbursed towards Unsecured Creditors. C. Payment towards Unsecured Creditors under Section 530 of the Companies Act 1956. Option 1: If claims submitted by Bank of Baroda and Corporation bank are covered by Stock and Book Debts and/or it gets approval from the Hon. High Court, they will be considered as secured creditors then it should be considered as Secured Creditors. The Unsecured creditors will than appear as S. No. Particulars Amount Verified Ratio of disbursement Unsecured Creditor Payment ( Sec 530 ) 1. Creditors for Unsecured Bonds 97,94,78,400 78.70% 2. Government of Gujarat 21,32,10,490 17.13% 3. Gayatri Masala Udyog 20,77,310 0.17% 4. Mehamdavad Urban Coop Bank 56,29,418 0.45% 5. Progressive Mercantile Coop Bank 4,41,10,685 3.55% 6. Bank of Baroda 18,90,02,532 0.00% 7. Corporation Bank 16,85,18,117 0.00% Total 124,45,06,303 100.00% Considering the amount is available from stock and book debts. Option 2: If Claims submitted by Bank of Baroda and Corporation bank are Not fully covered from the realization of the Stocks and Book debts and/ or the Hon High Court does not approve them as secured creditors, then they should be considered as Unsecured Creditors. The Unsecured creditors will than appear as S. No. Particulars Amount Verified Ratio of disbursement Unsecured Creditor Payment ( Sec 530 ) 1. Creditors for Unsecured Bonds 97,94,78,400 61.14% 2. Government of Gujarat 21,32,10,490 13.31% 3. Gayatri Masala Udyog 20,77,310 0.13% 4. Mehamdavad Urban Coop Bank 56,29,418 0.35% 5. Progressive Mercantile Coop Bank 4,41,10,685 2.75% 6. Bank of Baroda 18,90,02,532 11.80% 7. Corporation Bank 16,85,18,117 10.52% Total 160,20,26,952 100.00% 15. Creditors for Unsecured Bonds 97,94,78,400 61.14% 2. Government of Gujarat 21,32,10,490 13.31% 3. Gayatri Masala Udyog 20,77,310 0.13% 4. Mehamdavad Urban Coop Bank 56,29,418 0.35% 5. Progressive Mercantile Coop Bank 4,41,10,685 2.75% 6. Bank of Baroda 18,90,02,532 11.80% 7. Corporation Bank 16,85,18,117 10.52% Total 160,20,26,952 100.00% 15. Referring to the above report, it was submitted that the Indian Overseas Bank is required to be paid Rs.17,80,278/- being 100% secured against the hypothication of stock whereas Commercial Tax Department and Income Tax Department is to be paid Rs.56,22,83,536/-, under section 530 of the Act, 1956. However, the Official Liquidator is having balance of Rs.25,41,15,222/- as on 03.11.2022 in the account of the Company (In Liquidation). 16. It was therefore submitted that the Official Liquidator may be directed to keep aside Rs.50 lakh towards Central Government Fees TDS, Future workmen/Employees claim and thereafter disburse Rs.17,80,278/- to Indian Overseas Bank and thereafter, from the remaining amount to pay Rs.24,61,23,002/- to Commercial Tax Department and Rs.12,11,941/- to Income Tax Department in the ratio of 99.5% and 0.49% being preferential creditors under section 530 of the Act, 1956. 17. In view of the above facts stated in the further report dated 01.12.2022, this Company Application No. 362 of 2012 is allowed by permitting the Official Liquidator to disburse the following amounts, out of the balance in the accounts of the Company (In Liquidation): S. No. Creditors Rupees 1. Indian Overseas Bank 17,80,278/- 2. Commercial Tax Department 24,61,23,002/- 3. Income Tax Department 12,11,941/- 18. In view of the above, Company Application is disposed of with liberty to the applicant to apply afresh as and when funds is available with the Official Liquidator.