Section 123(1)(b) in The Companies Act, 1956

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Union of India - Subsection

Section 123(1)(b) in The Companies Act, 1956

(b)possession is taken by or on behalf of those debenture holders of any property comprised in or subject to the charge, then, if the company is not at the time in course of being wound-up, the debts which in every winding-up are, under the provisions of Part VII relating to preferential payments, to be paid in priority to all other debts, shall be paid forthwith out of any assets coming to the hands of the receiver or other person taking possession as aforesaid in priority to any claim for principal or interest in respect of the debentures.

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Union of India - Subsection

Section 123(1)(b) in The Companies Act, 1956