https://www.taxtmi.com/caselaws?id=96684 A debt owed to the Income Tax Department, arising more than twelve months before a company entered voluntary liquidation, was held not to qualify as a priority debt under the statutory liquidation scheme. The same treatment applied to the local committee's claim, while no other creditor established priority. As a result, the attached company property could not be retained to defeat pari passu distribution and had to be released for rateable sharing among all creditors. The liquidator was therefore entitled to restrain further execution against the assets so the estate could be administered in accordance with the Companies Act. en-us Sat, 06 Jul 1935 00:00:00 +0530 Tue, 10 Jan 2012 12:55:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=96684 A debt owed to the Income Tax Department, arising more than twelve months before a company entered voluntary liquidation, was held not to qualify as a priority debt under the statutory liquidation scheme. The same treatment applied to the local committee's claim, while no other creditor established priority. As a result, the attached company property could not be retained to defeat pari passu distribution and had to be released for rateable sharing among all creditors. The liquidator was therefore entitled to restrain further execution against the assets so the estate could be administered in accordance with the Companies Act. Case-Laws Companies Law Sat, 06 Jul 1935 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=96684