Section 341 — Distribution by official liquidator

Subject to any directions
given by the Court, the official liquidator shall, within thirty days of the coming
into his hands of funds sufficient to distribute among the creditors or contributories
after providing for expenses of the winding up or for other preferential payments
as provided in this Act, distribute in accordance with the provisions of this Act:

Provided that in case of company licenced under section 42 of this Act, if
on a winding up, there remains after the satisfaction of all debts and liabilities, any
assets, those shall be transf erred to another company licenced under section 42 of
this Act, preferably having similar or identical objects to those of the company in
the manner as may be specified and subject to such conditions as the Court may
impose:

Provided further that such por tion of the funds as may be required for
meeting any claim against the company which may be subjudice or subject matter
of adjudication or assessment shall not be distributed till the claim is finally settled:
Provided also that any amounts retained as aforesaid shall be invested by
the official liquidator in Special Saving Certificates and the same shall be deposited
by him with the Court and the distribution thereof shall be made by him after the
pending claims are settled:
Provided also that in case of company licenced under section 42, if any of
the assets is not transferred in the manner provided in first proviso due to any
reason, all such assets shall be sold and proceeds thereof credited to the Investor
Education and Awareness Fund formed under section 245.