Bird and Company Limited (Acquisition and Transfer of Undertakings and Other Properties) Act : PRIORITY OF

Bird and Company Limited (Acquisition and Transfer of Undertakings and Other Properties) Act,1980

Act No : 67

Section : PRIORITY OF CLAIMS

SECTION 17: PRIORITY OF CLAIMS

The claims arising out of the matters specified in Schedule II 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:

(c) the question of discharging any 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.