Amended and updated notes on section 350 of Companies Act 2013. Detail discussion on provisions and rules related to company Liquidator to deposit monies into scheduled bank.
Chapter XX (Section 270–365) of the Companies Act, 2013 (CA 2013) deals with the provisions related to winding up. Section 350 of CA 2013 provides for company Liquidator to deposit monies into scheduled bank.
Recently, we have discussed in detail section 349 (Official Liquidator to make payments into public account of India) of CA 2013. Today, we learn the provisions of section 350 of the Companies Act 2013.
The provisions of section 350 are effective from 15th December, 2016. You may refer Notification No. S.O. 3677(E) issued dated 7-12-2016. In this article, you will learn detail of the provisions of section 350 the Companies Act 2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XX |
| Chapter Name | Winding Up |
| Section No. | 350 |
| Section Name | Company Liquidator to deposit monies into scheduled bank |
| Monthly Updated Edition | Company Law PDF |
Section 350 of Companies Act 2013: Company Liquidator to deposit monies into scheduled bank
Section 350 shall come into force on 15th December, 2016 vide Notification No. S.O. 3677(E) dated 07.12.2016.
(1) Every Company Liquidator of a company shall, in such manner and at such times as may be prescribed, deposit the monies received by him in his capacity as such in a scheduled bank to the credit of a special bank account opened by him in that behalf:
Provided that if the Tribunal considers that it is advantageous for the creditors or contributories or the company, it may permit the account to be opened in such other bank specified by it.
(2) If any Company Liquidator at any time retains for more than ten days a sum exceeding five thousand rupees or such other amount as the Tribunal may, on the application of the Company Liquidator, authorise him to retain, then, unless he explains the retention to the satisfaction of the Tribunal, he shall—
- (a) pay interest on the amount so retained in excess, at the rate of twelve per cent per annum and also pay such penalty as may be determined by the Tribunal;
- (b) be liable to pay any expenses occasioned by reason of his default; and
- (c) also be liable to have all or such part of his remuneration, as the Tribunal may consider just and proper, disallowed, or may also be removed from his office.