Section 291 – THE COMPANIES (COURT) RULES, 1959

291. Fees to be credited to Central Government

In every winding-up where the Official Liquidator becomes or acts as Liquidator, there shall be paid into the public account of India in the Reserve Bank of India to the credit of the Central Government from out of the assets of the company in liquidation (or by the petitioner as provided in clause (1) below), the fees determined in accordance with the following, provisions-

 

(1) Where the Official Liquidator acts as Provisional Liquidator only, Such fees as the Court may consider reasonable, to be paid out of the assets of the company or by the petitioner as the Court may direct, in respect of’ the services of the Official Liquidator as Provisional Liquidator.

 

(2) Where a winding-up order is made and the Official Liquidator acts as liquidator of a company,

 

(i) Upon the total assets, including produce of calls on contributories, interest on investments, and rents from properties, realized or brought to credit by the Official Liquidator, after deducting sums on which fees are changeable under clauses (3) and (4) below and the amount spent out of the money received in carrying on the business of the company, upon each years collections,

 

On the first Rs. 10,000 or fraction thereof

3 per cent.

On the next Rs. 40,000 or fraction thereof

2 per cent.

On the next Rs. 50,000 or fraction thereof

1 per cent.

Above Rs. 1,00,000

3/4 per cent 

       

(ii) On the total amount distributed in dividend or paid to contributories, preferential creditors, and debenture holders by the Official Liquidator, half the above percentages.

 

Note: (a) In computing the collections of each year, the year shall be taken as ending with the 31st of March.

 

(b) The said fees shall include the Official Liquidator’s services as Provisional Liquidator, and shall be subject to clauses (8) and (9) hereunder.

 

(3) Where the Official Liquidator collects, calls or realizes property for debenture holders, The same scale of fees as under clause (2) to be paid out of the proceeds of such calls or property.

 

(4) Where the Official Liquidator realizes property for secured creditors other than debenture holders,

 

On the amount realized for each secured creditor,

 

On the first Rs. 10,000 or fraction thereof

4 per cent

On the next Rs. 40,000 or fraction thereof

21/2 per cent

On the next Rs. 50,000 or fraction thereof

2 per cent

Above Rs. 1,00,000

11/2 per cent

 

(5) When the Official Liquidator acts as trustee, under a scheme of arrangement, Such fees not exceeding the scale of fees under clause (2) above, as the Court shall allow.

 

(6) When the Official Liquidator performs any special duties not provided for above, Such fees as the Court may fix on the application of the Official Liquidator, in addition to any other fees payable.

(7) Where the Official Liquidator acts as liquidator in a creditors’ voluntary winding-up, Such fees as the Court may fix, not exceeding the scale under clause (2) a
bove.

 

(8) Where under section 527, the Court appoints any persons who are already liquidators in a winding-up subject to the supervision of the Court to be additional liquidators in a winding-up of the company by the Court, subject to the control of the Official Liquidator, Such fees as may be fixed by the Court after taking into consideration the remuneration payable to such additional liquidators.

 

(9) Where the Court has sanctioned the reconstruction of the company under liquidation or a scheme of arrangement of its affairs, or where for any reason the Court is of the opinion that the fees prescribed in paragraphs (2) and (3) above would be excessive, such reduction may be made in the said fees as the Court thinks fit.

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