Dear Sir(s),
Kindly advice that in case, a company closes down, among the followings, who will get their payments and at which rate:
Central Govt. Statutory dues
State Govt. Statutory dues
Employees Salary & other emoluments
Suppliers
Bankers
Thanks in advance.
Mahesh Khandelwal
+91 8017099070
From India, Calcutta
1Kindly advice that in case, a company closes down, among the followings, who will get their payments and at which rate:
Central Govt. Statutory dues
State Govt. Statutory dues
Employees Salary & other emoluments
Suppliers
Bankers
Thanks in advance.
Mahesh Khandelwal
+91 8017099070
From India, Calcutta
Please refer to sec.529-A and 530 of the Companies Act,1956. See also the judgment of the Hon'ble Supreme Court in Bank of Maharashtra v Pandurang Keshav Gorwardkar & Others [2013(4)ABR 390]. If the Company registered under the Companies Act is closed down consequent on the winding up orders passed by the Company Law Court and an Official Liquidator has been appointed,the workers and the secured creditors would be paid in full unless the assets are insufficient to meet them in which case they shall abate the equal proportions. However, while deciding the question of priority of dues in EPF Commissioner v Official Liquidator of Esskay Pharmaceuticals, the Supreme Court decided in favour of the dues to EPFO based on the premise that the EPF Act is a welfare legislation.
From India, Salem
From India, Salem
Please refer to the insolvency and bankruptcy code which has been implemented in December 2016
Earlier government dues were considered a priority over everything else. Now employee dues (covered under payment of wages act) are first priority along with banks and financial institutions. Other employees are now considered at next level of priority which is equal to to normal creditors as well as government dues
From India, Mumbai
Earlier government dues were considered a priority over everything else. Now employee dues (covered under payment of wages act) are first priority along with banks and financial institutions. Other employees are now considered at next level of priority which is equal to to normal creditors as well as government dues
From India, Mumbai
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