Rule 124 - Right of creditor who has not proved debt before declaration of dividend - Companies (Winding Up) Rules, 2020

124. Right of creditor who has not proved debt before declaration of dividend. - Any creditor who has not proved his debt before the declaration of any dividend or dividends shall be entitled to be paid out of any money for the time being in the hands of the Company Liquidator available for distribution of dividend, any dividend or dividends which such creditor may have failed to receive before that money is applied to the payment of any future dividend or dividends, but he shall not be entitled to disturb the distribution of any dividend declared before his debt was proved by reason that he has not participated therein.