https://www.taxtmi.com/caselaws?id=97129 The High Court of Travancore-Cochin held that the definition of "wages" in the Travancore Payment of Wages Act could not be imported into the Companies Act to treat a director-sanctioned bonus as wages. Because the bonus was sanctioned while winding-up claims remained pending and the liquidation was sub judice, it did not qualify as wages or as a preferential debt under company law. The court also rejected reliance on the provision for compensation for past services, since the employees had served under an existing contract of employment in return for wages, and the promised bonus was outside that provision. The employees were therefore not entitled to preferential creditor status for the bonus claim. en-us Tue, 03 Jul 1951 00:00:00 +0530 Sat, 14 Jan 2012 11:36:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97129 The High Court of Travancore-Cochin held that the definition of "wages" in the Travancore Payment of Wages Act could not be imported into the Companies Act to treat a director-sanctioned bonus as wages. Because the bonus was sanctioned while winding-up claims remained pending and the liquidation was sub judice, it did not qualify as wages or as a preferential debt under company law. The court also rejected reliance on the provision for compensation for past services, since the employees had served under an existing contract of employment in return for wages, and the promised bonus was outside that provision. The employees were therefore not entitled to preferential creditor status for the bonus claim. Case-Laws Companies Law Tue, 03 Jul 1951 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97129