Liquidation asset distribution follows statutory priority, with equal-ranking claims, ignored contrary contracts, and proportional fee deductions. Liquidation proceeds are distributed in a fixed statutory order of priority: insolvency resolution process costs and liquidation costs first, then equal-ranking workmen's dues and relinquished secured debt, followed by employee wages, unsecured financial debts, government dues and unpaid secured debt after enforcement, and then remaining debts, preference shareholders, and equity shareholders or partners. Contractual arrangements that disrupt this order are disregarded, liquidator's fees are deducted proportionately, and equal-ranking claims are paid in full or rateably if proceeds are insufficient.
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.
Liquidation asset distribution follows statutory priority, with equal-ranking claims, ignored contrary contracts, and proportional fee deductions.
Liquidation proceeds are distributed in a fixed statutory order of priority: insolvency resolution process costs and liquidation costs first, then equal-ranking workmen's dues and relinquished secured debt, followed by employee wages, unsecured financial debts, government dues and unpaid secured debt after enforcement, and then remaining debts, preference shareholders, and equity shareholders or partners. Contractual arrangements that disrupt this order are disregarded, liquidator's fees are deducted proportionately, and equal-ranking claims are paid in full or rateably if proceeds are insufficient.
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