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2022 (4) TMI 1257 - HC - Insolvency and BankruptcySeeking payment of minimum wages and compensation payable to three erstwhile employees - company under liquidation - discharge of dues out of liquidation proceeds - priority of discharge of workmen's dues - Section 53 (1) (b) (i) of I&B Code - HELD THAT:- It is to be noted that Section 53(1) deals with distribution of assets and the order of priority of distribution of liquidation assets. Under Section 53 (1) (b) (i) of the Code, priority is given for workmen's dues for the period of twenty-four months preceding the liquidation commencement date. It does not mean that the workmen's dues for the period prior to the said period need not be paid. The same has to be paid in the order of priority. 53 (1) (f) of the Code deals with the distribution of “any remaining debts and dues”. Therefore, the Liquidator has to distribute the amount covered by Ext.P3 order in terms of the priority as provided under Section 53 (1) of the Code. There can be no doubt that in view of Section238 of the Code, the Code will override anything inconsistent contained in any enactment, including the Minimum Wages Act, 1948. The Code provides for distribution of workmen's due from the liquidation assets in the order of priority. The workmen's dues, as adjudicated by the Controlling Authority under the Minimum Wages Act, 1948, has to be distributed from the liquidation assets in the order of priority as provided under Section 53 of the Code. Ext.P3 order is not in breach of the provisions of the Code - The liquidation process and the distribution of assets are not over and there is no bar under Section 38 of the Code to receive the claim under Ext.P3. Section 38 does not curtail the power of the Liquidator to distribute the dues out of liquidation process till the distribution of assets. There are no reason to interfere with Ext.P3 order of the Controlling Authority under the Minimum Wages Act, 1948, except to the extent of directing the petitioner to deposit the amount ordered therein within 30 days of the order. The amount directed to be paid in Ext.P3 shall be paid by the petitioner in the order of priority as provided under Section 53 (1) (f) of the Code - petition disposed off.
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