TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the Official Liquidator was entitled to deduct fees under rule 291 of the Companies (Court) Rules, 1959 on the different heads of realization and distribution, and whether the calculation required modification.
Analysis: Rule 291 provides for fees payable to the Central Government in a winding up where the Official Liquidator acts as liquidator, with distinct treatment for annual collections, dividend distributions, realizations for debenture holders and realizations for secured creditors. The fee is chargeable at the stage of collection or realization, but the Court held that interest earned on fixed deposits of sale proceeds already belonging to creditors and workers cannot again bear Central Government fees, since such interest arises only because distribution is delayed. The Court further held that distributions made by way of dividend under rule 291(2)(ii) do not include secured creditors within sections 529 and 529A of the Companies Act, 1956, while realizations from sale of property for secured creditors do fall within rule 291(4). Inspection charges and miscellaneous receipts were also treated as falling within the charging mechanism of rule 291, but the computation had to exclude amounts not lawfully chargeable.
Conclusion: The Official Liquidator was entitled to fees only on items covered by rule 291(2)(i), rule 291(2)(ii) and rule 291(4) as lawfully applicable, and the report was not accepted as originally computed; recalculation was directed by excluding fee on interest earned from invested sale proceeds and confining the levy to permissible heads.
TaxTMI 
TaxTMI 
