32 Banking Account of the Company Liqudator  

(1) All money to be paid in to the special bank account maintained with State Bankof India or any other nationalised bank- For the purposes of sub-section (1) of section 350, the Company Liquidator shall pay to the credit of a special bank account in his Official name opened in State Bank of India or any other nationalised bank all moneys including cheques and demand drafts received by him as the Company Liquidator of the company, and the realisations of each day shall be paid into the Bank without deduction not later than the next working day of the Bank. The Company Liquidator may maintain a petty cash of five thousand rupees or such higher amount as may be permitted by the Tribunal to meet day to day expenses. All payments out of the account by the Company Liquidator above two thousand rupees shall be made bycheques drawn against the said account.

(2) Bills and securities to be deposited into bank.- All bills, hundies, notes and other securities payable to the company or to the Company Liquidator thereof shall, as soon as they come into the hands of the Company Liquidator, be deposited by him with the Bank for the purpose of being presented for acceptance and payment or for payment only, as the case may be, and the proceeds when realised shall be credited by the Bank to the account of the Company Liquidator.

(3) Payments into Bank - Where the Tribunal makes an order directing any person to pay any money due to the company into the bank account maintained by the Company Liquidator, the person so directed shall, at the time of making the payment, produce to the Bank a certified copy of the order or a payment in challan endorsed by the Company Liquidator under his signature. The person making the payment shall give notice thereof to the Company Liquidator and produce before him the Bank receipt relating thereto.

(4) Company Liquidator s Dividend Account. - The Company Liquidator shall also open a separate dividend account for the company under liquidation with the sanction of the Tribunal, in State Bank of India or any other nationalised bank under the name the Dividend Account of.............. (name of the company) in liquidation, into which account he shall, upon a declaration of dividend being made in the winding-up of the company, deposit by transfer from his account, the total amount of the dividend payable upon such declaration. There shall be a separate account in respect of each declaration of dividend. All payments of dividend shall be made from the said Company Liquidator s dividend account and any unpaid balance in the account shall be transferred to the Company Liquidation Dividend and Undistributed Assets Account opened in accordance with sub-section (1) of section 352.

All payments of dividends shall be made by cheques or through Electronic Clearing System (ECS) drawn against the said account.

(5) Where the company has no available assets - Where a company against which a winding-up order has been made has no available assets, the Company Liquidator may, with the leave of the Tribunal, incur any necessary expenses in connection with the winding-up out of any permanent advance or other fund provided by the Central Government, and the expenses so incurred shall be recouped out of the assets of the company in priority to the debts of the company :

Provided that where any money has been advanced to the Company Liquidator by the petitioner or other creditor or contributory for meeting any preliminary expenses in connection with the winding-up, the Company Liquidator may incur any necessary expenses out of such amount, and the money so advanced shall be paid out of the assets of the company in priority to the debts of the company.