https://www.taxtmi.com/caselaws?id=101080 A board resolution declaring interim dividend does not, by itself, create a debt or enforceable liability, because it remains capable of rescission before payment; unlike a final dividend declared in general meeting, it does not crystallise into a subsisting obligation. Under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, only liabilities and obligations actually subsisting on the date of vesting pass to the transferee. A declared but unpaid interim dividend was therefore not a liability within section 5(1), and section 10(7), which concerns future profits of the new bank, did not apply to pre-existing liabilities of the old undertaking. en-us Wed, 14 Mar 1984 00:00:00 +0530 Wed, 08 Feb 2012 15:25:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=101080 A board resolution declaring interim dividend does not, by itself, create a debt or enforceable liability, because it remains capable of rescission before payment; unlike a final dividend declared in general meeting, it does not crystallise into a subsisting obligation. Under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, only liabilities and obligations actually subsisting on the date of vesting pass to the transferee. A declared but unpaid interim dividend was therefore not a liability within section 5(1), and section 10(7), which concerns future profits of the new bank, did not apply to pre-existing liabilities of the old undertaking. Case-Laws Companies Law Wed, 14 Mar 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=101080