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    Question

    Under Sections 17(1) and (2) of the DICGC Act, 1961, the

    Official Liquidator of Bank Y assumes charge on April 15, 2025. As the statutory officer responsible for submitting claim lists to DICGC, which of the following correctly determines the Liquidator's obligations and consequences for non-compliance?
    A The Liquidator must submit a verified list showing deposits and set-offs to DICGC within one month of assuming charge; failure to comply results in forfeiture of depositor claims Correct Answer Incorrect Answer
    B The Liquidator must submit a certified list showing deposits and set-offs within three months of assuming charge with the least possible delay; DICGC then has two months to pay the amounts due Correct Answer Incorrect Answer
    C The Liquidator has discretionary authority to delay submission until the liquidation process is 50% complete; DICGC payments are then made on a rolling basis Correct Answer Incorrect Answer
    D The Liquidator must submit claims only if depositors submit individual applications; passive submission is not required under Section 17 Correct Answer Incorrect Answer
    E The Liquidator's obligations under Section 17 apply only to savings and fixed deposits; current and recurring deposits are excluded from the claims process Correct Answer Incorrect Answer

    Solution

    Explanation: Section 17(1) of the DICGC Act explicitly provides: "in respect thereof, the liquidator shall, with the least possible delay and in any case not later than three months from the date of his assuming charge of office, furnish to the Corporation a list in such form and manner as may be specified by the Corporation showing separately the deposits in respect of each depositor and the amounts of set-off referred to in sub-section (3) of section 16." Section 17(2) further specifies: "Before the expiry of two months from the receipt of such list from the liquidator, the Corporation shall pay the amount payable under section 16 in respect of the deposit of each depositor: (a) to the liquidator." The statutory framework creates a three-month submission window and a two-month payment window for DICGC after receiving the list. The use of "with the least possible delay" indicates this is a mandatory obligation, not discretionary. Failure to comply could result in penalties under other provisions, though depositor claims are not forfeited—they remain valid against the liquidator's estate. All deposit types (savings, fixed, current, recurring) are covered equally. Thus, option (B) correctly applies Sections 17(1) and (2)

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