D.K. Deshmukh, J - (1.)By order dated 21-3-1994 passed in Company Petition No. 319 of 1992, this court had appointed a Sales Committee for disposal of the property of the respondent-company for payment of the dues of the secured creditors, workers and also the unsecured creditors. That Sales Committee has filed Company Application No. 923 of 1996. According to the Sales Committee, excluding the property of the respondent-company at Shirur which is land and movable, all other properties have been sold by the Sales Committee and payment has been made to the secured creditors as also the employees of the respondent-company who had lodged their claim with the respondent-company and the balance amount of Rs. 23,66,870.97 has been deposited in this Court. Therefore, the Sales Committee seeks its discharge. Company Application No. 2 of 1997 has been filed by the New India Assurance Co. Ltd. which is one of the unsecured creditors of the company. The claim of the New India Assurance Co. Ltd. is to the tune of Rs. 22,30,000. In Company Application No. 2 of 1997, the New India Assurance Co. Ltd. is seeking an order for payment of Rs. 22,30,000 to it. The Sales Committee has filed an affidavit stating that even after making attempts, they could not sell the Shirur property. Though there is no explanation in that affidavit as to why movables remained unsold, it is obvious that the movables have remained unsold. Considering that the only unsecured creditors who has come forward is the New India Assurance Co. In my opinion, following order can be passed to deal with the situation.
(2.)The New India Assurance Co., applicant in Company Application No. 2 of 1997 be paid an amount of Rs. 22,30,000 from out of the amount deposited in this Court by the Sales Committee and the interest earned on that amount and if that amount together with interest is not sufficient to meet the claim of New India Assurance Co. Ltd. then the entire amount be paid to the New India Assurance Co. Ltd. The New India Assurance Co. Ltd. be permitted to withdraw the amount only on its filing an affidavit and proper indemnity bond before the Prothonotary and Senior Master stating therein that the withdrawal of the amount by New India Assurance Co. Ltd. is subject to any future claims being lodged by the unsecured creditors and the employees of the respondent-company within a period of one year from today. In case such claims are lodged and they are found to be payable by the Court, the New India Assurance Co. Ltd. shall undertake to deposit either the entire amount withdrawn by it or so much out of that amount to satisfy those claims. It is clarified that the undertaking and indemnity given by the New India Assurance Co. Ltd. shall become invocable only after disposal of the unsold property and the movables and only in case the proceeds received after selling those properties are not enough to satisfy the claims received hereinafter. So far as the discharging the Sales Committee is concerned, in the present situation, in my opinion, the Sales Committee can be discharged, however, in case other claims are received or accepted by the Court, the Sales Committee would be called for the purpose of selling the balance property for fulfilling such liabilities. It is clarified that in case any claims are lodged and the Court is required to adjudicate those claims, the claimants shall give notice of their claim to the New India Assurance Co. Ltd. Both the company applications are disposed of.