The High Court directed recomputation of the third interim dividend in liquidation by excluding alleged excess interim payments and any interest from the immediate distribution. It held that liability to refund any excess could not be imposed without prior notice and an opportunity of hearing, so the issue was left for separate determination by the official liquidator. The Court also held that reserving 100% of the debt for belated secured claims was unjustified when other secured creditors were receiving only proportionate payment; only a corresponding proportion could be set aside. The interim dividend was therefore to be disbursed to secured creditors on the same proportionate basis, subject to later undertakings and final adjustment.
The High Court directed recomputation of the third interim dividend in liquidation by excluding alleged excess interim payments and any interest from the immediate distribution. It held that liability to refund any excess could not be imposed without prior notice and an opportunity of hearing, so the issue was left for separate determination by the official liquidator. The Court also held that reserving 100% of the debt for belated secured claims was unjustified when other secured creditors were receiving only proportionate payment; only a corresponding proportion could be set aside. The interim dividend was therefore to be disbursed to secured creditors on the same proportionate basis, subject to later undertakings and final adjustment.
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