30 Dividends and Returns of Capital in a Winding-Up by a Tribunal

(1) Declaration of dividend or return of capital - No dividend to creditors or return of capital to contributories shall be declared by the Company Liquidator without the sanction of the Tribunal.

(2) Notice of declaration - The Company Liquidator shall give notice of the declaration of dividend not less than fifteen days prior to the date fixed for the payment thereof. Unless otherwise directed by the Bench, such notice shall be given by advertisement in such newspapers as the Bench shall direct and by Registered AD or other recognized modes of service as per section 20 of the Act, to every creditor / member as on such date. The advertisement shall be in Form No. 87 and the notice to creditors /contributories in Form No. 88.

(3) Form of authority to pay dividend and modes of transmission - A person to whom dividend is payable may lodge with the Company Liquidator an authority in writing to pay such dividend to another person named therein. Such authority shall be in Form No. 89 Dividends and returns of capital may, at the request, risks and cost of the person to whom they are payable, shall upon submission of valid identification proof, be transmitted through electronic or other reliable means.

(4) Form of order directing return of capital - Every order by which the Company Liquidator is authorised to make a return to contributories of the company, shall, unless the Tribunal otherwise directs, contain or have appended thereto a schedule or list (which the Company Liquidator shall prepare) setting out in a tabular form the full names and addresses of the persons to whom the return is to be paid, and the amount of money payable to each person, and particulars of the transfers of shares (if any) which have been made or the variations in the list of contributories which have arisen since the date of the settlement of the list of contributories and such other information as may be necessary to enable the return to be made. The schedule or list shall be in Form No. 90with such variations as circumstances shall require and the Company Liquidator shall send a notice of return to each contributory by Registered AD or other recognized modes of service as per section 20 of the Act in Form No. 91.

(5) Payment of dividend or return of capital due to a deceased creditor or contributory- Where a claim is made in respect of a dividend due to a deceased creditor or a return of capital due to a deceased contributory upto one lakh rupees, the Company Liquidator may, upon satisfying himself as to the claimant s right and title to receive the dividend or the return as the case may be, apply to the Tribunal for sanctioning the payment of such dividend or return to the claimant. Where the Tribunal sanctions the payment without the production of a succession certificate or like authority, the Company Liquidator shall make the payment upon obtaining a personal indemnity from the payee.