Workmen's pari passu charge protects employee claims when secured creditors realise security, with liquidator enforcement and expense allocation. The Bill applies insolvency rules in winding up so that secured security is subject to a pari passu charge in favour of workmen equal to their portion; the liquidator may enforce that charge and realised amounts are applied rateably to discharge workmen's dues, while shortfalls of secured creditors rank pari passu with workmen's dues, and secured creditors who realise security must contribute to preservation expenses net of the workmen's share.
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.
Workmen's pari passu charge protects employee claims when secured creditors realise security, with liquidator enforcement and expense allocation.
The Bill applies insolvency rules in winding up so that secured security is subject to a pari passu charge in favour of workmen equal to their portion; the liquidator may enforce that charge and realised amounts are applied rateably to discharge workmen's dues, while shortfalls of secured creditors rank pari passu with workmen's dues, and secured creditors who realise security must contribute to preservation expenses net of the workmen's share.
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