Distributable sum account requirement ensures liquidator must hold and disburse declared sums from dedicated bank account.

Rule 255 requires the liquidator to open a separate Distributable Sum Account for each LLP and for each declaration of distributable sum, deposit the declared total by transfer from his account with the Reserve Bank of India or designated bank, make all distributable payments from that account, and transfer any unpaid balance back to the liquidator's account before paying it into the LLP's liquidation account as unclaimed distributable sums; payments above the specified monetary threshold are ordinarily made by cheque.

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