https://www.taxtmi.com/caselaws?id=460358 The Delhi HC held that government commission under Section 451(2) of Companies Act, 1956 does not fall lower in priority than workmen dues and secured creditors. The court reasoned that Official Liquidator's fees are mandatory expenses for liquidating company assets, and funds for distribution become available only after liquidation. While Sections 529A and 530 establish priority for debt payments, these provisions relate to disbursement of funds already available post-liquidation. The liquidation expenses necessarily precede fund availability for dividend payments. Citing SC precedent, the court concluded government fees cannot be accorded lower priority than workmen debts. Appeal dismissed. en-us Thu, 23 Nov 2023 00:00:00 +0530 Mon, 20 Jan 2025 20:06:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460358 The Delhi HC held that government commission under Section 451(2) of Companies Act, 1956 does not fall lower in priority than workmen dues and secured creditors. The court reasoned that Official Liquidator's fees are mandatory expenses for liquidating company assets, and funds for distribution become available only after liquidation. While Sections 529A and 530 establish priority for debt payments, these provisions relate to disbursement of funds already available post-liquidation. The liquidation expenses necessarily precede fund availability for dividend payments. Citing SC precedent, the court concluded government fees cannot be accorded lower priority than workmen debts. Appeal dismissed. Case-Laws Companies Law Thu, 23 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460358