Priority of liquidation expenses: liquidator may use government or creditor advances and recoup them ahead of other creditors.

Where an LLP has no available assets, the liquidator may, with leave of the Tribunal, incur necessary winding up expenses from a permanent advance or other fund provided by the Central Government or the Tribunal, and such expenses shall be recouped out of the LLP's assets in priority to the debts; money advanced by a petitioning or other creditor or partner for preliminary expenses may be used and is similarly payable out of the LLP's assets in priority to other debts.

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