Section 16 in Assam Sillimanite Limited (Acquisition And Transfer Of Refractory Plant) Act, 1976
16. Priority of claims in relation to arrears of provident fund, etc.-
(1)Out of the amount paid to him under sub-section (1) of section 15, the Commissioner shall deduct in the first instance, all sums equal to the amount of arrears due to the persons who were in employment of the Company, in connection with the Refractory Plant, on the 1st day of July, 1973,--(a)in relation to a provident fund, pension fund or any other fund established for the welfare of such persons,(b)as wages.(2)All sums deducted under sub-section (1) shall, in accordance with such rules as may be made under this Act, be credited by the Commissioner to the relevant fund or paid by him to the persons to whom the said sums are due and on such credit or payment, the liability of the Company in respect of the amount of arrears due as aforesaid shall, to the extent of such credit or payment, stand discharged.(3)Every deduction made under sub-section (1) shall have priority over all other debts, whether secured or unsecured.
