Andhra Scientific Company Limited (Acquisition and Transfer of Undertakings) Act : PRIORITY OF CLAIMS Indian

Andhra Scientific Company Limited (Acquisition and Transfer of Undertakings) Act,1982

Act No : 71

Section : PRIORITY OF CLAIMS

SECTION 19: PRIORITY OF CLAIMS
The claims made under section 18-shall have priorities in accordance with the following principles, namely:-
(a) Category I shall have precedence over all other categories and Category II shall have
precedence over Category III, and so on;
(b) the claims specified in each of the categories shall rank equally and be paid in full, but, if the amount is insufficient to meet such claims in full, they shall abate in equal proportions and be paid accordingly; and
(c) the question of discharging the liability with regard to a matter specified in a lower category shall arise only if a surplus is left after meeting all the liabilities specified in the immediately higher category.