( 1 ) THE present application is filed by the official Liquidator with the prayer as follows:" (I) direct the learned Court of subordinate Judge, Adoni to transfer the amount of Rs. l,68,260-60ps. deposited by the Andhra Pradesh state Financial Corporation along with interest accrued and/or credited, to the account of Official Liquidator, high Court of Andhra Pradesh, hyderabad subject to the right of mortgages if any; (ii) order the costs of this application to come out of the assets of the company and pass such further or other order or orders as this Hon ble Court may be deemed fit and proper in the circumstances of the case".

( 2 ) BY an order dated 10-8-1994 (sic. 1984), this Court directed the winding up of the company in liquidation and appointed the Official Liquidator to be the liquidator of the company. It appears that the assets of the company now in liquidation were sold by the State Financial Corporation sometime in the year 1980, obviously in exercise of the power conferred under section 29 of the State Financial corporations Act. Thereupon, the Official liquidator addressed a letter to the State financial Corporation to furnish the details of the amounts due to them and remit the amount realised by them on the sale of the assets which were not the subject matter of the hypothecation to the assets. As the State financial Corporation did not respond to the letter of the Official Liquidator, the official Liquidator filed C. A. No. 184 of 1991. This Court by an order dated 27-3-1992 directed the State Financial corporation to furnish the necessary information to the Official Liquidator. Subsequently, the State Financial corporation by its letter dated 15-5-1992 informed the Official Liquidator that the assets of the company now in liquidation were sold to M/s. Rajani Enterprises, bombay for a consideration of rs. 10,01,000/-, out of which an amount of rs. 1,68,260. 60 ps. which was surplus i. e. , the balance amount after satisfying the claim of the State Financial Corporation, remitted to the Sub-Judge, Adoni. Thereafter, the present C. A. No. 384 of 1998 came to be filed.

( 3 ) FROM an earlier order of this Court dated 16-8-1999, the following facts emerge: that one Khemji Poonja, Ginning and pressing Factory Private Limited, Adoni filed a money decree is O. S. No. 46 of 1979 on 31-12-1979 against the company now in liquidation. Thereafter, the decreeholder filed E. P. NO. 8 of 1984 for attachment of the property belonging to the company now in liquidation. The decreeholder also filed e. A. No. 220 of 1985 for issuance of a cheque for Rs. 30,000. 00 out of the abovementioned amount of Rs. 1,68,260-60ps. lying with the state Financial Corporation. It appears, in obedience to the directions of the executing court the State Financial Corporation sent rs. 30,000/- to the executing Court to be paid to the decreeholder. Similarly, another body known as Thoban Devji and Co. filed o. S. No. 47 of 1979 and obtained an ex parte decree dated 31-12-1979. Consequentially, e. P. No. 9 of 1984 was filed for recovery of an amount of Rs. l,13,915-15ps. Attachment was ordered. Then, E. A. No. 217 of 1985 was filed for issuance of a cheque. In obedience to the directions of the executing Court, the state Financial Corporation issued a cheque for an amount of Rs. 87,860-66ps. to be paid to the abovementioned decreeholder and it is recorded by this Court in its order dated 16-8-1999 that the said amount was paid to the abovementioned decreeholder on 19-6-1985.

( 4 ) THE Official Liquidator in his application stated that even the abovementioned amounts ought not to have paid to the decreeholder and should have been remitted to the Official liquidator.

( 5 ) THIS Court in its order dated 16-84999 directed that notices be issued to the abovementioned decreeholders and also the state Financial Corporation calling upon them to deposit the various amounts mentioned above with the Official liquidator with interest at 12% pe