https://www.taxtmi.com/caselaws?id=106885 The court held that workmen's dues are to be paid in full only if assets are sufficient; otherwise, they abate equally with other claims in a company's liquidation process. Workmen were granted the status of secured creditors by law, ensuring their dues are paid in preference to other debts. The court emphasized the Companies Act provisions must be followed, rejecting the plea for preferential treatment of workmen's dues over secured creditors based on labor-related case laws. The judgment affirmed the rateable distribution of three paise per rupee to both workmen and secured creditors due to insufficient assets to cover all liabilities. en-us Fri, 09 Nov 2001 00:00:00 +0530 Fri, 16 Mar 2012 11:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=106885 The court held that workmen's dues are to be paid in full only if assets are sufficient; otherwise, they abate equally with other claims in a company's liquidation process. Workmen were granted the status of secured creditors by law, ensuring their dues are paid in preference to other debts. The court emphasized the Companies Act provisions must be followed, rejecting the plea for preferential treatment of workmen's dues over secured creditors based on labor-related case laws. The judgment affirmed the rateable distribution of three paise per rupee to both workmen and secured creditors due to insufficient assets to cover all liabilities. Case-Laws Companies Law Fri, 09 Nov 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=106885