36. Provisions as to declaration of dividend notifying its distribution and remission and other connected matters.
- (i) A dividend should be declared in each estate ordinarily every six months, i.e., on the 1st July and the 1st January, each year.(ii)If sufficient funds are not available for a particular dividend in any particular estate a report to this effect should be made to the Court for orders on these dates.(iii)No dividend shall be distributed by a Receiver without the previous sanction of the Court.(iv)Notice that the distribution of a dividend has been sanctioned shall be sent by the Receiver, or, if there is no Receiver by the Court, to every creditor, who has proved a debt, by registered post within one month from the date of the order sanctioning the distribution.(v)An order shall not be made under section 65 of the Act without giving the Receiver an opportunity to show cause why the order should not be made.(vi)The amount of the dividend may, at the request, expense and risk of the creditor, be transmitted to him by post.But if the amount is under rupees twenty, the Official Receiver may, after due notice, remit the sum by post to the creditors concerned at their expense and risk even when no formal request has been made by them.(vii)Where the assets in the hands of the Official Receiver are too small for distribution as dividend, e.g., a rupee or so, these sums may be treated, with the permission of the court in each case, as "unclaimed" by creditors and eventually lapsed to Government.Procedure where the Debtor is a Firm
