Section 5(2) in The Companies (Temporary Restrictions On Dividends) Act, 1974
(2)Where, after the commencement of the Companies (Temporary Restrictions on Dividends) Amendment Act, 1975 , a company to which this Act applies declares dividend for any financial year exceeding, in the aggregate, its distributable profits for that financial year, such company shall not, for a period of two years from the appointed day, make payment of so much of such dividend as exceeds its distributable profits for that financial year and, on the expiry of the said period, so much of the dividend as is in excess of the dis- tributable profits of the company for- the financial year aforesaid (the amount in excess as aforesaid being hereinafter, referred to as the" deferred dividend"), shall be payable, together with interest due thereon at the rate of eight per cent. per annum, in two equal annual instalments, the first of which shall become due and payable on the date on which the said period of two years expires.
