---The company has not declared bankruptcy/is not in liquidation.
Assuming that company is in liquidation and has debts also to clear
The stacking order of priorities in secured lending:
An analysis of Supreme Court ruling in
Central Bank of India vs. State of Kerala
Assuming the value of assets of an entity is Rs 10 crores, and the entity has the following outstandings:
• Dues to banks, holding charges over the assets: Rs 15 crores
• Excise dues: Rs.1 crore
• Sales-tax dues Rs.1 crore
• EPF dues Rs.1 crore
• Workmen’s Compensation dues Rs.1 crore
• Workmen’s dues Rs.3 crore
Assuming the company is under liquidation, the order of priorities will run as follows:
1. EPF dues – Rs.1 crores
2. Workmen’s Compensation Dues – Rs.1 crores
3. Sales Tax Dues – Rs.1 crores
4. Dues to Banks (pari passu with Workmen’s Dues) – Rs.5.83 crores
5. Workmen’s Dues (pari passu with Bank Dues) – Rs.1.17 crores
So you can very well find out the dues to the employees are which number in order of priorities.
You may go thru another thread:
---The employees who are not being paid since November2012 (5months) may realize that they are wasting their time, and should firm up their next venture as ap.
---The employees may approach a lawyer and decide to file complaint under 406,420.
The idea is employer must pay wages even if company has to take loan, from whichever source it may or it can.
---The employees may involve trade unions, media and thus force promoters to pay wages, from whichever source they can.
Employees may find out the detail of properties owned by employer(s)/Promoters…..
---Payment of Wages Act:
(Wage ceiling as per def. of wages for coverage of employees has been increased to Rs.18000/pm, so the act shall cover now more number of employees)
13A. Maintenance of registers and records.
15. Claims arising out of deductions from wages or delay in payment of wages and penalty for malicious or vexatious claims.
Provided that every such application shall be presented within
16. Single application in respect of claims from unpaid group.
17A. Conditional attachment of property of employer or other Person responsible for payment of wages.
---If your establishment is covered under Shops and Establishments Act of your state, you may go thru the provisions.
This Act is applicable to all employees and does not indiscriminate between workman and non workman.
The Delhi Shops and Establishments Act,
21. Claims relating to wages.—(1) The Government may by notification in the Official
Gazette, appoint any Commissioner for Workmen’s Compensation Act or other officer with experience as a Judge of a Civil Court or as a Stipendiary Magistrate to be the authority to hear and decide all claims arising out of delayed payment or non-payment of earned wages of an employee employed in any establishment.
Provided that every such application should be presented within one year from the date the claim for such wages has become payable under this Act:……..
(6) Every direction of the authority under this section shall be final.
37. Powers and duties of the Inspector.
(a) Powers of the Inspector
(b) Duties of the Inspector………..
(h) that the wages and other dues are being paid to employees in time as required under
43. Determination of employer for the purpose of this Act.
Valuable advice of learned experts/members is sought.