https://www.taxtmi.com/caselaws?id=97524 Employees' claim for money equivalent of unavailed privilege leave was not a preferential debt in winding up. The court held that, although the leave accrued under service conditions and leave provisions, the company had no earmarked fund or trust from which the amount was payable, so the liability was not impressed with a trust. The claim also did not qualify under the Companies Act preferential categories for wages, salary, provident fund, pension fund, gratuity fund, or similar employee welfare funds. The later express provision for accrued holiday remuneration in the Companies Act, 1956 underscored that the earlier Act contained no such entitlement. The employees were therefore not entitled to priority payment. en-us Wed, 17 Apr 1957 00:00:00 +0530 Tue, 17 Jan 2012 11:25:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=97524 Employees' claim for money equivalent of unavailed privilege leave was not a preferential debt in winding up. The court held that, although the leave accrued under service conditions and leave provisions, the company had no earmarked fund or trust from which the amount was payable, so the liability was not impressed with a trust. The claim also did not qualify under the Companies Act preferential categories for wages, salary, provident fund, pension fund, gratuity fund, or similar employee welfare funds. The later express provision for accrued holiday remuneration in the Companies Act, 1956 underscored that the earlier Act contained no such entitlement. The employees were therefore not entitled to priority payment. Case-Laws Companies Law Wed, 17 Apr 1957 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=97524