Companies Act, 2013

Section - 326 - Overriding preferential payments

[ Overriding preferential payments.

326. (1) In the winding up of a company under this Act, the following debts shall be paid in priority to all other debts:

(a)	-	workmen's dues; and
(b)	-	where a secured creditor has realised a secured asset, so much of the debts due to such secured creditor as could not be realised by him or the amount of the workmen's portion in his security (if payable under the law), whichever is less, pari passu with the workmen's dues:

Provided that in case of the winding up of a company, the sums referred to in sub-clauses (i) and (ii) of clause (b) of the Explanation, which are payable for a period of two years preceding the winding up order or such other period as may be prescribed, shall be paid in priority to all other debts (including debts due to secured creditors), within a period of thirty days of sale of assets and shall be subject to such charge over the security of secured creditors as may be prescribed.

(2) The debts payable under the proviso to sub-section (1) shall be paid in full before .... To read the full section download the app from Google Play store