Official Liquidator Vs Income Tax (Kerala High Court)
The application was filed by the Official Liquidator seeking various directions in relation to the liquidation proceedings of a company. The reliefs sought included ratification of service of the application on the Standing Counsel for the Income Tax Department, sanction to declare and disburse dividend at the rate of 100 paise in a rupee to four ordinary creditors of the company in liquidation, permission to issue dividend notices in the prescribed form, exemption from newspaper publication requirements, and approval to incur necessary expenses connected with the declaration and payment of dividends.
The Official Liquidator also sought permission to prematurely close a fixed deposit and transfer sufficient funds to the dividend account of the company in liquidation. Further, approval was sought to open a dividend account with Punjab National Bank, M.G. Road, Ernakulam, with an amount of ₹1,50,84,119, and to transfer any unclaimed dividend amount to the Companies Liquidation Account in accordance with Section 555(1) of the Companies Act, 1956.
After considering the averments in the application and hearing the Standing Counsel for the Official Liquidator, the Kerala High Court held that the prayers deserved to be allowed. Accordingly, the application was allowed, and the Official Liquidator was directed to declare the dividend.
