Sannahaida, Since dead by his Legal representatives, Jayamma, Parvathi and Lakshmi vs Registrar of Companies

Anand Byrareddy, J.—Heard the learned counsel for the applicants and the learned counsel for the Registrar of Companies. The applicants herein are the legal representatives of one Sannahaida who was working in the Mandya National Paper Mills (in liquidation). On 02.06.1997, it appears that Sannahaida had died, which is evidenced by a Death Certificate which is produced along with the application. It transpires that the applicants had sought for recovery of dues amounting to a sum of Rs. 1,91,592/- that they were entitled to, on the death of Sannahaida. It transpires that the Official Liquidator had passed an order dated 30.09.2008 insofar as releasing dues by way of a second dividend. It is to recover this amount which is due, that the applicants had obtained a survivorship certificate dated 14.12.2010 from the competent authority as per Annexure-"C" to the petition.

The amount which is now transferred to the Company''s liquidation account u/s 555 of the Companies Act, 1956, had compelled the applicants to approach the respondent -Registrar of Companies for release of the amount. However, the same has been negated and the applicants have been directed to produce a Succession Certificate. It is in this background that the present application is filed seeking a total amount of Rs. 2,00,179/- which would be due for, with interest that has accrued on the original amount.

The learned counsel for the applicants would submit that the applicants are in dire financial straits and are, barely able to survive and therefore, are not in a position to go through the cumbersome procedure of obtaining a Succession Certificate and a Survivorship Certificate is normally relied upon in respect of State Government servants and it is further stated that in view of the deceased employee being associated with the company in liquidation which was an undertaking of the Hindustan Paper Corporation which is a Government of India Undertaking, the Survivorship Certificate which has been issued and obtained with some difficulty by the applicants, should be entertained by the Registrar of Companies. However, the Registrar of Companies has entered appearance through counsel and has filed statement of objections. The only objection raised by the Registrar of Companies as regards the release of the payment is not really on account of the production of a Succession Certificate, since there are precedents where the Registrar of Companies has released amounts in favour of legal representatives on production of a survivorship certificate. Applicants are required to make a payment towards the application fee in a nominal sum of Rs. 300/- which according to their procedure is to be paid online, and since the applicants have failed to do so, the Registrar of Companies has not processed the same and that immediately on payment of the application fee by the applicants, the same shall be processed.

Hence, the applicants shall comply with the same and on such online payment, the amount due shall be released in favour of the applicants. The application stands disposed of in the above terms.