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2004 (4) TMI 296 - SUPREME COURTWinding up - Overriding preferential payments - Held that:- The effect of sections 529 and 529A is that the workmen of the company become secured creditors by operation of law to the extent of the workmen’s dues provided there exists secured creditor by contract. If there is no secured creditor then the workmen of the company become unsecured preferential creditors under section 529A to the extent of the workmen dues. Thus even section 529A will override all other claims of other creditors even where a decree has been passed by a court.
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