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2007 (8) TMI 445 - HC - Companies LawWinding up – Overriding preferential payments - Held that:- Provident fund dues of workmen, thus, rank alongside the debts of the secured creditors of a company in liquidation to the extent that the same are covered by the securities. Provident fund dues of other employees stand below the workmen's dues on account of provident fund and the secured creditors' dues on a construction of section 529A and section 530 of the Companies Act. In the instant case, the Provident Fund Commissioner has an equal claim, along with the secured creditors of the company in liquidation in so far as such debts are covered by the securities, for the sum of ₹ 1323.80. The quantum of the secured creditors' dues and the provident fund dues of the workmen have to be ascertained and the sum of ₹ 1323.80 has to be paid out by the official liquidator to the secured creditors and the provident fund authorities on a pro rata basis. Since, it appears that the claim of the provident fund authorities on account of workmen's provident fund is an excess of the sum available, without taking into account the secured creditors' debts, the sums due on account of other employees' provident fund cannot be met out of the money available for disbursement.
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