Section 71: Calculation of dividends

71. Calculation of dividends.—(1) In the calculation and distribution of dividends, the official assignee shall retain in his hands sufficient assets to meet___ (a) debts provable in insolvency and appearing from the insolvent’s statements or otherwise to be due to persons resident in places so distance that in the ordinary course of communication they have not had sufficient time to tender their proofs ; (b) debts provable in insolvency the subject of claims not yet determined ; (c) disputed proofs or claims ; and (d) the expenses necessary for the administration of the estate or otherwise. 1In the application of the Act to Karachi, this sub-section has been repealed: see the Presidency-towns Insolvency (Born. Amdt.) Act, 1933 (Bom. 20 of 1933), s. 11 and First Sch., as amended by the Karachi Insolvency Law Amdt. Act, 1953 (Bom. 3 of 1935), s. 2. 2Subs. by the Presidency-towns Insolvency (Amdt.) Act, 1929 (3 of 1929), s. 2, for “six months”. (2) Subject to the provisions of sub-section (1), all money in hands shall be distributed as dividends.

Effective date: 1909-01-01

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