https://www.taxtmi.com/caselaws?id=113158 In company liquidation, realised sale proceeds must be distributed under the mandatory priority scheme in section 529A of the Companies Act, with workmen's dues and secured creditors taking precedence. Rule 179 of the Companies (Court) Rules permits subsequent interest only where a surplus remains after full payment of admitted claims. Section 19(19) of the Recovery of Debts Due to Banks and Financial Institutions Act also requires distribution in accordance with section 529A. A claim rejection made without following this statutory sequence is unsustainable and must be reconsidered under the proper liquidation priorities. en-us Wed, 25 Aug 2010 00:00:00 +0530 Fri, 26 Sep 2014 13:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=113158 In company liquidation, realised sale proceeds must be distributed under the mandatory priority scheme in section 529A of the Companies Act, with workmen's dues and secured creditors taking precedence. Rule 179 of the Companies (Court) Rules permits subsequent interest only where a surplus remains after full payment of admitted claims. Section 19(19) of the Recovery of Debts Due to Banks and Financial Institutions Act also requires distribution in accordance with section 529A. A claim rejection made without following this statutory sequence is unsustainable and must be reconsidered under the proper liquidation priorities. Case-Laws Companies Law Wed, 25 Aug 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=113158