(1)In the winding up of an insolvent company, the same rules shall prevail and be observed with regard to-(a)debts provable;(b)the valuation of annuities and future and contingent liabilities; and(c)the respective rights of secured and unsecured creditors; as are 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 debt, opts to realise his security,-(a)the Liquidator shall be entitled to represent the workmen and enforce such charge;(b)any amount realised by the Liquidator by way of enforcement of such charge shall be applied rateably for the discharge of workmen's dues; and(c)so much of the debt due to such secured creditor as could not be realised by him by virtue of the foregoing provisions of this proviso or the amount of the workmen's portion in his security, whichever is less, shall rank pari passu with the workmen's dues for the purposes of section 529-A.]
