Overriding preferential payments: workmen's dues and certain secured debts take priority over other creditors in winding up. Workmen's dues and secured debts that rank pari passu with such dues are payable in priority to all other debts in a company's winding up. Wages or salary payable for the prescribed period before winding up must be paid in priority to all other debts within thirty days of asset sale and are subject to a prescribed charge over secured creditors' security; prioritized sums are payable in full before distributions to secured creditors and, if assets are insufficient, abate in equal proportions.
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.
Overriding preferential payments: workmen's dues and certain secured debts take priority over other creditors in winding up.
Workmen's dues and secured debts that rank pari passu with such dues are payable in priority to all other debts in a company's winding up. Wages or salary payable for the prescribed period before winding up must be paid in priority to all other debts within thirty days of asset sale and are subject to a prescribed charge over secured creditors' security; prioritized sums are payable in full before distributions to secured creditors and, if assets are insufficient, abate in equal proportions.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
