Section 12A(9) in Andhra Pradesh Co-Operative Societies Act, 1964
(9)The proceeds realised from the transfer of assets or assets and liabilities, in whole or in part, of the society concerned, shall be applied in discharge of the liabilities of such society in the following order of priority, namely:(i)all expenses incurred for preservation and protection of the assets;(ii)(a)dues payable to workmen and employees;(b)debts payable to secured creditors according to their rights and priorities inter se;(c)dues payable to provident fund or other authorities which are protected under a statute by a charge on the assets;(iii)debts payable to ordinary creditors;(iv)share capital contributed by the members of the society:Provided that the cases covered under Category (i) shall have precedence over all other Categories, Category (ii) shall have precedence over Categories (iii) and (iv) and Category (iii) shall have precedence over Category (iv):Provided further that the debts specified in each of the Categories shall rank equally and be paid in full, but in the event of the amount being insufficient to meet such debts, they shall abate in equal proportions and be paid accordingly:Provided also that the question of discharging any liability with regard to a debt specified in a lower Category shall arise only if a surplus fund is left after meeting all the liabilities specified in the immediately higher Category.
