Section 11 in The Jammu and Kashmir Employees Provident Funds and Miscellaneous Provisions Act, 1961
11. Priority of payment of contributions over other debts.
- Where any employer, is declared to be insolvent or, being a company an order for its winding up is made, the amount due-(a)from the employer in relation to an establishment to which any scheme applies in respect of any contribution payable to the Fund, damages recoverable under section 16, accumulations required to be transferred under sub-section (2) of section 17 or any charges payable by him under any other provision of this Act or of any provision of the Scheme, or(b)from the employer in relation to an exempted establishment in respect of any contribution to the provident fund in so far as it relates to exempted employees, under the rules of the provident fund, damages recoverable under section 16 or any charges payable by him to the Government under any provision of this Act or under any of the conditions specified under section 19;shall, where the liability therefor has accrued before the order of adjudication or winding up is made, be deemed to be included among the debts which under any law relating to insolvency or companies for the time being in force in the State, are to be paid in priority to all other debts in the distribution of the property of the insolvent or the assets of the company being wound up as the case may be.
