Application of insolvency rules in winding up of insolvent companies.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....re in force for the time being under the law of insolvency with respect to the estates of persons adjudged insolvent:      Provided that the security of every secured creditor shall be deemed to be subject to a pari passu charge in favour of the workmen to the extent of the workmen's portion therein, and, where a secured creditor, instead of relinquishing his security and proving his debts, opts to realise his security,-            (i) the liquidator shall be entitled to represent the workmen and enforce such charge;            (ii) any amount realised by the liquidator by way of enforcement of such charge shall b....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e security.       (3) For the purposes of this section, section 326 and section 327,-            (a) "workmen'', in relation to a company, means the employees of the company, being workmen within the meaning of clause (s) of section 2 of the Industrial Disputes Act, 1947; (14 of 1947.)            (b) "workmen's dues'', in relation to a company, means the aggregate of the following sums due from the company to its workmen, namely:-                 (i) all wages or salary including wages payable for time or piece work and salary earne....