Report No. 63
4.4. Position as to winding up proceedings.-
It has been held1. that under the corresponding English provision,2-3 unsecured creditors cannot claim interest in winding up proceedings, even though the company which is being wound up is actually found to have a surplus. This interpretation would, it seems, apply to section 1 of our Act also. Of course, on the specific question of interest in winding up, the provision in the Companies Rules4 may suffice. Rule 156, Companies (Courts) Rules, 1959, is as follows:-
"156. Interest-On any debt or sum certain, payable at a certain time or otherwise, whereon interest is not reserved or agreed for, and which is overdue at the date of the winding up order, or the resolution as the case may be, the creditor may prove for interest at a rate "not exceeding four per cent per annum upto that date from the time when the debt or sum was payable, if the debt or sum is payable by virtue of a written instrument at a certain time, and if payable otherwise, then from the time when a demand in writing has been made, giving notice that interest will be claimed from the date of demand until the lime of payment." -
1. Fine Industrial Commodities Ltd. (in re:), (1955) 3 All ER 707 (709) (Vaisey J.).
2. Section 3(1), Law Reform (Miscellaneous Provisions) Act, 1934.
3. Para. 4.3, supra.
4. Rule 156, Companies (Courts) Rules, 1959.