Public Exchequer Funds Held by Official Liquidator Cannot Be Utilized for Employee Welfare: Calcutta High Court

The Calcutta High Court, presided over by Justice Krishna Rao, has held that funds in the Official Liquidator’s Establishment Charges Account cannot be used to grant terminal medical benefits to company-paid staff. The ruling came in response to an application under Rules 308 and 309 of the Companies (Court) Rules, 1959, where retired employees sought terminal medical assistance and Income Tax exemption under Section 10(10) of the Income Tax Act,…