IMPORTANT POINT
The court established that a claimant can receive interest on a delayed refund even if there was a lapse in claiming it, provided the funds were not returned as per prior court orders.

ORDER :

1. The Official Liquidator attached to this High Court filed administrative report and requested to take it on record and further sought permission to refund/return EMD/part sale consideration of Rs.29 Lakhs to Sri P. Vijaya Saradhi Raju (highest bidder for lot No. 5) pursuant to the orders dated 22.04.2016 in CA. No. 1555 of 2008 of this Court from and out of the fund of Rs.9,50,000/- available in companies account and Rs.19,50,000/- from and out of the “Estate and Establishment Fund Account” maintained by the Official Liquidator, subject to recruitment of the sale against the sale proceedings of the assets of the company (in liqn.).

2. The Company Application No. 4 of 2024 is filed to direct the respondent herein to return the EMD amount of Rs.29,00,000/- along with interest @ 6% per annum for the date of deposit to till the date of payment.

3. The administrative permission sought by the Official Liquidator is heard on the bench along with COMP Appeal No. 4 of 2024 as per the order dated 30.04.2024 on administrative side.

The facts leading to the seeking above relief as briefly as follows:

By an order dated 04.12.2006 in C.P. No. 128 of 2005 this Court directed the widening up of M/s. Vijetha Agro Farms (India) Limited and appointed the Official Liquidator in terms of Section 449 of the Companies Act, 1956. By an order dated 02.12.2008 in C.A. No. 1555 of 2008, this Court permitted the Official Liquidator to sell all the assets of the company (In Liqn). In response to the sale notice, fixing the date of auction as 24.12.2008, the Official Liquidator received certain sealed tenders, including that of Sri. P. Vijaya Saradhi Raju for lot Nos. 5, 8 & 10. He deposited the EMD amount of Rs.20 Lakhs for lot No. 5, Rs.7 lakhs for lot No. 8 and Rs.5 lakhs for lot No. 10. Thereafter, the auction was conducted on 24.12.2008. The EMD amounts in respect of lot Nos.8 and 10 were returned to him since he became the unsuccessful bidder in the said lots. With regard to the lot No. 5, he became the highest bidder with an offer of Rs.3,29,00,000/- to purchase land to an extent of Ac.120.42 cents situated in Thimmayapalem Village, Vinukonda Mandal, Guntur District. Vide order dated 03.03.2009 in C.A. No. 1555 of 2008 passed by this High Court, the sale was confirmed in favour of Sri. P. Vijaya Saradhi Raju. Accordingly, the Official Liquidator issued a letter dated 05.03.2009 to him informing the orders of the High Court and advised him to remit the balance sale consideration of Rs.3,09,00,000/- after adjustment of the EMD amount of Rs.20,00,000/- as per the terms and conditions. He remitted an amount of Rs.9,00,000/- vide his letter dated 26.03.2009 towards part of the sale consideration and informed that he would remit the balance sale consideration within six months. The same was informed to this Court through a report of Official Liquidator vide OLR No. 139 of 2009 dated 02.04.2009. However, he has not paid the balance sale consideration within the time requested. Meanwhile, some third parties filed certain applications before this Court and claimed the title over the properties sold by the Official Liquidator. Vide final order dated 22.04.2016 passed by this Court, the sale conducted by the Official Liquidator was terminated with a further direction to return the EMD amount available, within two weeks from the date of receipt of the copy of the order. Pursuant thereto, the Official Liquidator returned all the EMD amounts to the highest bidders, who raised the claim, except P. Vijaya Saradhi Raju. Thus, the amount of Rs,29,00,000/- (EMD of Rs.20,00,000/- + part of the sale consideration of Rs.9,00,000/-) is still lying with the office of the Official Liquidator. Another application vide C.A. No. 621 of 2016 was filed by the Official Liquidator before this Court seeking permission for conducting fresh sale of the properties of the company (in liqn.) and the same is pending before this Court. P. Vijaya Saradhi Raju, vide letter dated 14.03