https://www.taxtmi.com/caselaws?id=39169 Money deposited in a company's liquidation account under section 555 of the Companies Act, 1956 remains an asset of the company until actual payment is made, and does not vest finally in the claimant. A claimant's entitlement is therefore subject to superior claims, including pending income-tax liability. Payment under section 555(7)(b) may be sanctioned only when the Central Government is properly satisfied, on a liquidator's certificate or other reliable material, that the claimant is entitled and no competing court proceeding is pending. In the absence of such satisfaction, the sanction cannot stand and the claimant takes only the balance after tax liability is met. en-us Tue, 05 Aug 1975 00:00:00 +0530 Tue, 13 Apr 2010 13:41:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39169 Money deposited in a company's liquidation account under section 555 of the Companies Act, 1956 remains an asset of the company until actual payment is made, and does not vest finally in the claimant. A claimant's entitlement is therefore subject to superior claims, including pending income-tax liability. Payment under section 555(7)(b) may be sanctioned only when the Central Government is properly satisfied, on a liquidator's certificate or other reliable material, that the claimant is entitled and no competing court proceeding is pending. In the absence of such satisfaction, the sanction cannot stand and the claimant takes only the balance after tax liability is met. Case-Laws Income Tax Tue, 05 Aug 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39169