https://www.taxtmi.com/caselaws?id=102171 Closure following a winding-up order on a creditor's petition was not treated as closure due to unavoidable circumstances beyond the employer's control; the company's inability to pay debts fell within financial difficulty under the Explanation to the proviso to section 25-FFF(1), so workmen received full closure compensation and not merely three months' average pay. Workmen were also treated as secured creditors by operation of law under sections 529 and 529A of the Companies Act, 1956, giving them pari passu rights with the secured creditor. The relevant distribution date was the winding-up order date, not the sale date, and interest on admitted claims was payable at 12% per annum from the winding-up order until realisation. en-us Tue, 21 Apr 1992 00:00:00 +0530 Mon, 13 Feb 2012 18:21:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=102171 Closure following a winding-up order on a creditor's petition was not treated as closure due to unavoidable circumstances beyond the employer's control; the company's inability to pay debts fell within financial difficulty under the Explanation to the proviso to section 25-FFF(1), so workmen received full closure compensation and not merely three months' average pay. Workmen were also treated as secured creditors by operation of law under sections 529 and 529A of the Companies Act, 1956, giving them pari passu rights with the secured creditor. The relevant distribution date was the winding-up order date, not the sale date, and interest on admitted claims was payable at 12% per annum from the winding-up order until realisation. Case-Laws Companies Law Tue, 21 Apr 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=102171