Liquidation bank account requirements govern receipt, deposit, cash retention, and payment controls in liquidation. The liquidator must open a scheduled bank account in the corporate debtor's name followed by the words 'in liquidation' and deposit all money received, including cheques and demand drafts, into that account. Daily realisations must be credited without deduction by the next working day. The liquidator may retain cash up to one lakh rupees, or a higher amount permitted to meet liquidation costs, and all payments above five thousand rupees must be made by cheque or online banking transaction.
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Provisions expressly mentioned in the judgment/order text.
Liquidation bank account requirements govern receipt, deposit, cash retention, and payment controls in liquidation.
The liquidator must open a scheduled bank account in the corporate debtor's name followed by the words "in liquidation" and deposit all money received, including cheques and demand drafts, into that account. Daily realisations must be credited without deduction by the next working day. The liquidator may retain cash up to one lakh rupees, or a higher amount permitted to meet liquidation costs, and all payments above five thousand rupees must be made by cheque or online banking transaction.
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