Section 16 in Anglo-French Textiles Limited (Acquisition and Transfer of Textile Undertaking) Act, 1986
16. Priority of claims.
- The claims arising out of the matters specified in the Second Schedule 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;(b)the claim specified in each category except Category-II 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-II shall be discharged subject to the priorities specified in this section, in accordance with the terms of the secured loans and the priority, inter se, of such loans; and(d)the question of payment of a 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.
