Search Results Page

Search Results

1 - 10 of 25 (0.25 seconds)
In Re: Crips Laboratories Ltd. (In ... vs Unknown on 2 May, 2008 cites

Rajasthan Financial Corporation vs Official Liquidator, Jaipur Spinning ... on 25 February, 1994

A combined reading of Sections 529 and 529-A of the Companies Act would show that, notwithstanding anything contained in any other law for the time being in force, or in the Companies Act itself, preference is given for workmen's dues, and debts due to the secured creditors, to the extent such debts rank, under Clause (c) of the proviso to Section 529(1), pari passu. Therefore, when the assets of the company are sold and the proceeds realized, the debts by way of workmen's dues, and that of the secured creditors, have to be paid in full if the assets are sufficient to meet them and if they are not sufficient then in equal proportions. The distribution, in a case where the debtor is a company in the process of being wound up, can only be in terms of Section 529-A read with Section 529 of the Companies Act. The Liquidator represents the entire body of the creditors and also holds a right on behalf of the workers to have a distribution pari passu with the secured creditors. (Rajasthan Financial Corporation v. Official Liquidator, Jaipur Spinning and Weaving Mills Ltd. (In Liquidation [1997] 88 Comp Cas 192 (Raj)).
Rajasthan High Court - Jaipur Cites 3 - Cited by 11 - Full Document
1   2 3 Next