Section 4(1) in The Companies (Temporary Restrictions On Dividends) Act, 1974
(1) 1 Save as otherwise provided in section 5A, for a period of two years] from the appointed day, no company to which this Act applies shall declare or pay dividends for any financial year except out of the profits of the company for that financial year and no such dividend shall exceed, in the aggregate, the distributable profits of the company for that financial year: Provided that nothing in this sub- section shall apply to any dividend which was declared and paid, before the appointed day, to a section of the shareholders of a company but was not paid, before the appointed day, to another section of the shareholders of that company.
