Interim Deposit to enable liquidation claim invitation and provisional dividend determination; interest disclosure deferred until claim adjudication.

An interlocutory dispute over realised sale proceeds required an interim deposit to enable statutory claim invitation and initial dividend determination under the Companies Act; the court found the common fund available for pari passu distribution and directed an interim deposit to the Official Liquidator to permit claims (including workmen claims) to be invited and dividends provisionally computed. The request to compel early disclosure of interest earned on appropriated amounts was refused at this stage, with such particulars to be demanded from secured creditors during claim adjudication and final dividend computation.

---

---

Issues: Whether the respondent should be directed to deposit Rs.5,00,000/- from the sale proceeds of Rs.75,00,000/- with the Official Liquidator to enable the liquidator to invite claims and proceed with distribution under Section 529A of the Companies Act; and whether the respondent should be directed at this stage to furnish details of interest earned on the sale proceeds.

Analysis: The Official Liquidator, acting under Section 446 of the Companies Act, 1956, seeks an interim deposit to enable invitation of claims and determination of dividend including claims by workmen under Section 529A of the Companies Act, 1956. The respondents have shown that from the realised sum of Rs.75,00,000/-, appropriations have been made by multiple secured creditors leaving a common balance of Rs.19,42,000/-, retained to meet liabilities and eventualities. Given that the remaining common fund is available for meeting liabilities and for pari passu distribution, an interim deposit to the Official Liquidator is necessary to permit the statutory claim process to proceed and to enable an initial determination of dividends to workmen and other claimants. A direction to furnish details of interest earned on the appropriated amounts is not necessary at the present interlocutory stage; such particulars can be required from each secured creditor when claims are filed and dividends are being finally computed.

Conclusion: Application allowed in part; respondent is directed to deposit Rs.5,00,000/- with the Official Liquidator within four weeks from receipt of a copy of the order; the prayer for furnishing details of interest earned is declined at this stage.

---