Section 178(1) in Insolvency And Bankruptcy Code, 2016
(1)Notwithstanding anything to the contrary contained in any law enacted by the Parliament or the State Legislature for the time being in force, in the distribution of the final dividend, the following debts shall be paid in priority to all other debts-(a)firstly, the costs and expenses incurred by the bankruptcy trustee for the bankruptcy process in full;(b)secondly,-(i)the workmen's dues for the period of twenty-four months preceding the bankruptcy commencement date; and(ii)debts owed to secured creditors;(c)thirdly, wages and any unpaid dues owed to employees, other than workmen, of the bankrupt for the period of twelve months preceding the bankruptcy commencement date;(d)fourthly, any amount due to the Central Government and the State Government including the amount to be received on account of Consolidated Fund of India and the Consolidated Fund of a State, if any, in respect of the whole or any part of the period of two years preceding the bankruptcy commencement date;(e)lastly, all other debts and dues owed by the bankrupt including unsecured debts.
