https://www.taxtmi.com/caselaws?id=110938 Deducted employee contribution amounts kept intact in a separate account are treated as trust money and fall outside the company's general assets, so they may be payable in priority. ESI statutory priority, however, operates subject to the liquidation framework under the Companies Act, 1956, and does not override the overriding priority given to workmen's dues and pari passu secured creditor claims under section 529A. In liquidation, secured creditors' rights over mortgaged or earmarked assets prevail within that statutory scheme, and the corporation cannot claim automatic priority over such assets unless the claim is established within the applicable distribution rules. en-us Thu, 04 Aug 2005 00:00:00 +0530 Thu, 19 Apr 2012 12:38:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=110938 Deducted employee contribution amounts kept intact in a separate account are treated as trust money and fall outside the company's general assets, so they may be payable in priority. ESI statutory priority, however, operates subject to the liquidation framework under the Companies Act, 1956, and does not override the overriding priority given to workmen's dues and pari passu secured creditor claims under section 529A. In liquidation, secured creditors' rights over mortgaged or earmarked assets prevail within that statutory scheme, and the corporation cannot claim automatic priority over such assets unless the claim is established within the applicable distribution rules. Case-Laws Companies Law Thu, 04 Aug 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=110938