Section 26 in The M.P. Adjustment and Liquidation of Industrial Workers' Debt Act, 1936
26. Distribution of proceeds of assets to creditors in order of priority and assignment of shares of surplus.
(1)After taking any action required by Section 25, the Court shall distribute the proceeds of the assets available for the unsecured creditors to those creditors in proportion to the adjusted debts due to them and shall make an order in such form as may be prescribed assigning a share of the surplus, not exceeding one thirty-sixth of the surplus in any one month payable on the specified dates to the creditors in order of priority.(2)In determining the order of priority among the creditors, the Court shall have regard to the date of incurring the debts, the purposes for which they were incurred and any other circumstances which it regards as conferring a claim to priority.
