Umakanthan53
Labour Law & Hr Consultant
Saswatabanerjee
Partner - Risk Management

Thread Started by #Mahesh Khandelwal

Dear Sir(s),
Kindly advice that in case, a company closes down, among the followings, who will get their payments and at which rate:
Central Govt. Statutory dues
State Govt. Statutory dues
Employees Salary & other emoluments
Suppliers
Bankers
Thanks in advance.
Mahesh Khandelwal
+91 8017099070
8th August 2017 From India, Calcutta
Please refer to sec.529-A and 530 of the Companies Act,1956. See also the judgment of the Hon'ble Supreme Court in Bank of Maharashtra v Pandurang Keshav Gorwardkar & Others [2013(4)ABR 390]. If the Company registered under the Companies Act is closed down consequent on the winding up orders passed by the Company Law Court and an Official Liquidator has been appointed,the workers and the secured creditors would be paid in full unless the assets are insufficient to meet them in which case they shall abate the equal proportions. However, while deciding the question of priority of dues in EPF Commissioner v Official Liquidator of Esskay Pharmaceuticals, the Supreme Court decided in favour of the dues to EPFO based on the premise that the EPF Act is a welfare legislation.
9th August 2017 From India, Salem
Please refer to the insolvency and bankruptcy code which has been implemented in December 2016
Earlier government dues were considered a priority over everything else. Now employee dues (covered under payment of wages act) are first priority along with banks and financial institutions. Other employees are now considered at next level of priority which is equal to to normal creditors as well as government dues
10th August 2017 From India, Mumbai
Suomoto a company cant' be closed. If it is closed with force will come under the legal jurisprudance and every one related to company will be dealt suitably.
10th August 2017 From India, Mumbai
Reply (Add What You Know) Start New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)





About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2019 Cite.Co™