Section 350: Company Liquidator to deposit monies into scheduled bank
This section requires a Company Liquidator to deposit company money into a scheduled bank and explains the penalties for retaining large sums of money for too long.
The section, clause by clause
What the section says
In plain terms
(1)Every Company Liquidator of a company shall, in such manner and at such times as may be prescribed, deposit the monies received by him in his capacity as such in a scheduled bank to the credit of a special bank account opened by him in that behalf:
A Company Liquidator must deposit money they receive into a special bank account at a scheduled bank, although the Tribunal can allow the account to be opened at a different bank if it benefits the creditors or company.
provisoProvided that if the Tribunal considers that it is advantageous for the creditors or contributories or the company, it may permit the account to be opened in such other bank specified by it.
(2)If any Company Liquidator at any time retains for more than ten days a sum exceeding five thousand rupees or such other amount as the Tribunal may, on the application of the Company Liquidator, authorise him to retain, then, unless he explains the retention to the satisfaction of the Tribunal, he shall—
If a Company Liquidator retains more than 5,000 rupees for over 10 days, they must explain why or pay 12 per cent interest and a penalty, and may also have to pay expenses, have their pay cut, or be removed from office.
(2)(a)pay interest on the amount so retained in excess, at the rate of twelve per cent. per annum and also pay such penalty as may be determined by the Tribunal;
(2)(b)be liable to pay any expenses occasioned by reason of his default; and
(2)(c)also be liable to have all or such part of his remuneration, as the Tribunal may consider just and proper, disallowed, or may also be removed from his office.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. Subs. by Act 29 of 2020, s. 50, for sub-section (6) (w.e.f. 21-12-2020).
- 2. Sub-section (7) omitted by Act 29 of 2020, s. 50 (w.e.f. 21-12-2020).
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.