APHC010488792025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3506] MONDAY, THE TWENTY SECOND DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE CHALLA GUNARANJAN COMPANY APPLICATION NO: 9/2025 Between: 1. M/S COMMERCIAL BENEFIT CORPORATION, AND 6 OTHER FIRMS (IN LIQN) REPRESENTED BY THE OFFICIAL LIQUIDATOR, HIGH COURT OF TELANGANA AND ANDHRA PRADESH. ...APPELLANT AND 1. NIL, a ...RESPONDENT Let all the parties concerned attend the sitting Judge in Chambers/Court Clock in the noon on the hearing of anday of application by the applicant(s) above named, for an order to ., 2025 aton Permit the Official Liquidator to rectify the entries made in the books of account of the firms (in liqn) by reducing the realization of debt / decree amount of Rs.38.00 lakhs and interest of Rs.8,70,844/- from Interest Realisation Amount as suggested by T.Badarinath and Associates, Chartered Accountants vide letter dated 09-09- 2025 (refer Para 6, Annexure -E) I. Permit the Official Liquidator to refund an amount of Rs.38,00,000/- plus interest amounting to Rs.8,70,844/- as on 11- 09-2025 totaling to Rs.46,70,844/- (Rupees Forty Six Lakhs Seventy Thousand Eight Hundred Forty Four Only) to Sri K.Balaji Gupta, in compliance of order dated 09-05-2025 of this Hon'ble Court Order that the cost of this application do come out of the amount available to the credit of the firms (in liqn) and III. Pass Counsel for the Appellant: 1. T V P SAI VIHARI(SC FOR OFFICIAL LIQUIDATOR) Counsel for the Respondent: 1. The Court made the following: THE HONOURABLE SRI JUSTICE CHALLA GUNARANJAN COMPANY APPLICATION NO:09/2025 in Company Petition Nos.10 to 16 of 1999 ORDER: The present application is filed seeking following relief: (i) Permit the Official Liquidator to rectify the entries made in the books of account of the firms (in liqn) by reducing the realization of debt/decree amount of Rs.38.00 lakhs and interest of Rs.8,70,844/- from Interest Realisation Amount as suggested by T.Badarinath & Associates, Chartered Accountants vide letter dated 09-09-2025 (refer Para 6, Annexure-E); (ii) Permit the Official Liquidator to refund an amount of Rs.38,00,000/- plus interest amounting to Rs.8,70,844/- as on 11-09-2025 totalling to Rs.46,70,844/- (Rupees Forty Six Lakhs Seventy Thousand Eight Hundred Forty Four Only) to Sri K.Balaji Gupta, in compliance of order dated 09052025 of this Hon’ble Court; (iii) Order that the cost of this application do come out of the amount available to the credit of the firms (in liqn); and pass such other orders. 2. Company under liquidation was directed to be wound up by this Court in Company Petition Nos.10 to 16 of 1999. The official 2 CGR, J COMPA. No.9 of 2025 liquidator came to be appointed to take care of the assets of the company under liquidation. In the process, properties vide (i) D.No.16/22&23, Javali Street, Kothapeta, Palamaner Village, (ii) D.No.16/56&57, Javali Street, Kothapeta, Palamaner Village, (iii) D.No.16/54&55, Javali Street, Kothapeta, Palamaner Village, came to be alienated in favour of Sri K.Balaji Gupta, by executing registered sale deed vide Document No.3161/2022, dated 12.04.2022, for consideration of 38 lakhs. 3. Subsequently, company application No.30 of 2022 came to be filed by Official Liquidator for declaring aforesaid sale deed as null and void and consequently to direct sub-registrar for cancellation of the same and also to refund the sale consideration. 4. By judgment dated 09.05.2025, this Court has allowed the said application by granting the prayer as sought for. Upon cancellation of the sale deed, Official Liquidator has been directed to take steps for refund of the sale consideration. All pending miscellaneous applications in C.A. No.30 of 2022 came to be closed simultaneously. The Official Liquidator later approached the Sub-Registrar, Palamaner, seeking cancellation of sale deed, and accordingly, the same came to be cancelled. The same is evident 3 CGR, J COMPA. No.9 of 2025 from the encumbrance certificate, which is filed as annexure – B. Further, the official liquidator has also sought opinion of the official chartered accountant for carrying out rectificative entries in the books on account of reversal of the transaction. Accordingly, by letter dated 30.07.2025, the chartered accountant has advised to carry out rectification of entries in books with regard to the sale consideration that was received earlier and also suggested to refund the same along with interest credited. Hence, the present application is filed. 5. This Court has gone through the orders passed in C.A. No.30 of 2022, dated 09.05.2025 and also the subsequent developments that have been placed on record including the certificate of encumbrance and also chartered accountant’s suggestions, inasmuch as the cancellation of sale deed has now resulted in consequence of refunding the amount as directed earlier, as suggested by the chartered accountant even the interest accrued on the sale consideration is sought to be refunded which is justified. Therefore, the official liquidator is allowed to rectify entries in the book of accounts of the company under liquidation, giving effect to the cancellation of sale deed and proceeds to be reversed thereon, along with interest of Rs.8,70,844/-, besides the 4 CGR, J COMPA. No.9 of 2025 principal amount of 38 lakhs. Official liquidator is also permitted to refund aforesaid amount to Sri K.Balaji Gupta in compliance with the earlier order of this Court. 6. With the above direction, this application stands disposed of. There shall be no order as to costs. As a sequel, miscellaneous petitions pending consideration, if any, in this case shall stand closed. _______________________ CHALLA GUNARANJAN, J 22.09.2025 SS