Burn Company and Indian Standard Wagon Company (Nationalisation) Act : PRIORITY OF CLAIMS Indian Bare Acts

Burn Company and Indian Standard Wagon Company (Nationalisation) Act ,1976

Act No : 97

Section : PRIORITY OF CLAIMS

SECTION 18: PRIORITY OF CLAIMS

The claims arising out of the matters specified in the Second Schedule shall have priorities ii accordance with (he 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, except Category IV, 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.

(c) the liabilities specified in Category IV shall he discharged, subject to the priorities specified in this lection, in accordance with the terms of the secured loans and the priority, inter se, of such loans: and

(d) the question of discharging any liability with regard lo 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.