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Issues:
1. Entitlement to interest payment till the date of payment under section 183(5) of the Indian Companies Act. 2. Priority of claim in a liquidation scenario. 3. Applicability of section 230 of the Indian Companies Act in determining interest payment. 4. Interpretation of section 229 of the Companies Act in the context of an insolvent company. 5. Calculation of interest in insolvency cases as per the Provincial Insolvency Act. 6. Determining the date of adjudication in insolvency cases. 7. Comparison of legal principles in insolvency cases in India and England. Analysis: The judgment involves an application under section 183(5) of the Indian Companies Act by a claimant against the official liquidators' decision on interest payment. The claimant argued for interest till the date of payment, challenging the official liquidators' offer of interest only till the date of the winding-up order. The court previously ruled on the claimant's priority in the liquidation proceedings, determining that the claimant was entitled to priority for a specific sum. However, the issue of interest was not addressed in the earlier ruling. In analyzing the entitlement to interest payment, the court considered the provisions of section 230 of the Indian Companies Act, which specify certain debts entitled to priority and interest payment up to a defined date. The claimant's debt did not fall under section 230, leading to the application of section 229 of the Companies Act. The court emphasized that the claimant's debt was considered trust money, entitling it to priority independently of section 230. Regarding the calculation of interest in insolvency cases, the court referred to the Provincial Insolvency Act, which mandates rateable payment of debts and specifies the cessation of interest upon adjudication. The judgment clarified that interest ceases to run post-adjudication, aligning with the principle that interest stops accruing from the date of presentation of the insolvency petition. Furthermore, the court compared legal principles in insolvency cases in India and England, highlighting that interest accrual ceases upon adjudication. Drawing from precedents and statutory provisions, the judgment emphasized that interest payment extends only up to the date of the winding-up petition presentation, rejecting the claimant's demand for interest till the date of payment. The court concluded that the official liquidators' offer of interest till the winding-up order date was excessive, affirming the rejection of the claimant's application for extended interest payment.
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