Workmen's dues - company under liquidation - discharge of dues ...

Workmen's dues prioritized in liquidation u/s 53 of Insolvency Code, unaffected by Section 38 claims process.

April 28, 2022

Case Laws     Insolvency and Bankruptcy     HC

Workmen's dues - company under liquidation - discharge of dues out of liquidation proceeds - 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. - HC

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