Section 174 of IBC : Section 174: Distribution Of Interim Dividend

Explanation using Example

Imagine a situation where a company, XYZ Pvt. Ltd., goes bankrupt and an individual named John is appointed as the bankruptcy trustee. The company has multiple creditors who are owed various amounts. After selling some of the company's assets, John accumulates a substantial amount of money. He decides that it's time to distribute this money to the creditors before the final settlement.

John declares an interim dividend, meaning that the creditors will receive a partial payment now, with the possibility...

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