The Companies Act, 1956
553. Voluntary liquidator to make payments into Scheduled Bank.
(1) Every liquidator of a company, not being an Official Liquidator shall, in such manner and at such times as may be prescribed, pay the moneys received by him in his capacity as such into a Scheduled Bank to the credit of a special banking account opened by him in that behalf, and called “the Liquidation Account of …………………….. Company Limited/Company Private Limited/Company”:
Provided that if the 1[Tribunal] is satisfied that for the purpose of carrying on the business of the company or of obtaining advances or for any other reason, it is to the advantage of the creditors or contributories that the liquidator should have an account with any other bank, the 1[Tribunal] may authorise the liquidator to make his payments into or out of such other bank as the 1[Tribunal] may select; and thereupon those payments shall be made in the prescribed manner and at the prescribed times into or out of such other bank.
(2) If any such liquidator at any time retains for more than ten days a sum exceeding five hundred rupees or such other amount as the 1[Tribunal] may, on the application of the liquidator, authorise him to retain, then, unless he explains the retention to the satisfaction of the 1[Tribunal], he shall
(a)pay interest on the amount so retained in excess, at the rate of twelve per cent, per annum and also pay such penalty as may be determined by the Registrar;
(b)be liable to pay any expenses occasioned by reason of his default; and
(c)also be liable to have all or such part of his remuneration as the Court may think just disallowed, and to be removed from his office by the 1[Tribunal].
1. Subs. by Act 11 of 2003, sec. 108, for “Court”.