Provisions applicable to every mode of winding up ‑ Deposit of surplus funds available with official liquidator in nationalised bank ‑ Whether court’s approval is to be obtained - Companies Law - Circular : No. 13/76

Circular : No. 13/76 [1/1/76 ‑ CL ‑ V, and 1/6/75 ‑ CL ‑ III], dated 16 ‑ 6 ‑ 1976. Subject:- Provisions applicable to every mode of winding up ‑ Deposit of surplus funds available with official liquidator in nationalised bank ‑ Whether court s approval is to be obtained A nationalised bank had addressed this Department suggesting that the official liquidators attached to High Courts may be directed to deposit the funds at their disposal in nationalised banks, since some official liquidators are reported to have told some branch managers of nationalised banks concerned that they are under obligation to deposit the money in State Bank of India only. Under rule 293 of the Companies (Court) Rules, 1959, all moneys for the time being standing to the credit of official liquidator, as is not immediately required for the purpose of winding up, shall be invested in Government securities or interest bearing deposits in the State Bank of India or, with the prior approval of the court, in interest bearing deposits in any other scheduled bank, in his name as the official liquidator of the company to which the funds belong. Court approval may, therefore, be obtained for depositing the surplus funds which are not immediately required by the liquidator of companies under his charge, under the aforesaid Rules, in the nationalised banks also, whenever found convenient.