Preferential payments in winding up preserve priority for recent taxes, employee wages, statutory contributions and compensation. Preferential payments in winding up rank specified claims ahead of other unsecured creditors and, where applicable, ahead of floating charge debenture holders. Priority covers recent government revenues and rates, employee wages up to a limited recent period, accrued holiday pay, employer statutory contributions and workmen's compensation liabilities, sums from company employee welfare funds, and certain investigatory expenses. These claims rank equally and abate proportionately if assets are insufficient, are to be paid promptly subject to winding up costs, and carry defined charges over distrained goods and floating charge property.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Preferential payments in winding up preserve priority for recent taxes, employee wages, statutory contributions and compensation.
Preferential payments in winding up rank specified claims ahead of other unsecured creditors and, where applicable, ahead of floating charge debenture holders. Priority covers recent government revenues and rates, employee wages up to a limited recent period, accrued holiday pay, employer statutory contributions and workmen's compensation liabilities, sums from company employee welfare funds, and certain investigatory expenses. These claims rank equally and abate proportionately if assets are insufficient, are to be paid promptly subject to winding up costs, and carry defined charges over distrained goods and floating charge property.
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