ORDER OF PRIORITIES FOR THE DISCHARGE OF LIABILITIES OF THE TWO COMPANIES
Post-take-over management period
Category I—
(a) Wages, salaries and other dues payable to the employees of the companies.
(b) Deductions made from the salaries and wages of the employees for provident fund, the
Employees‟ State Insurance Fund, premium relating to the Life Insurance Corporation of India or for
any other purpose.
Category II—
Principal amount of loans advanced by—
(i) the Central Government;
(ii) a State Government;
(iii) Banks and financial institutions:
(iv) any other sources.
Category III—
(a) Arrears in relation to contributions to be made by the companies to provident fund, the
Employees‟ State Insurance Fund or under any other law for the time being in force providing for
such contributions.
(b) Any credits availed of by the companies for the purpose of carrying on any trading or
manufacturing operations, other than those specified in sub-section (2) of section 5.
(c) Any dues of State Electricity Boards or other Government or semi-Government institutions
against supply of goods or services, other than those specified in sub-section (2) of section 5.
(d) Arrears of interest on loans and advances .
Category IV—
(a) Revenue, taxes, cesses, rates or other dues to Central Government, a State Government or any
local authority.
(b) Any other dues.
Pre-take-over management period
Category V—
(a) Wages, salaries and other dues payable to the employees of the companies.
(b) Deductions made from the salaries and wages of the employees for provident fund, the
Employees‟ State Insurance Fund, premium relating to the Life Insurance Corporation of India or for
any other purpose.
Category VI—
(a) Principal amount of secured loans advanced by—
(i) the Central Government;
(ii) a State Government;
(iii) Banks and financial institutions.
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(b) Arrears in relation to contributions to be made by the companies to provident fund, the
Employees‟ State Insurance Fund or under any other law for the time being in force providing for
such contributions.
Category VII—
Principal amount of unsecured loans advanced by—
(i) the Central Government;
(ii) a State Government;
(iii) Banks and financial institutions.
Category VIII—
(a) Any credits availed of by the companies for the purpose of carrying on any trading or
manufacturing operations.
(b) Any dues of State Electricity Boards or other Government and semi-Government institutions
against supply of goods or services.
(c) Arrears of interest on loans and advances.
(d) Revenue, taxes, cesses, rates or other dues to the Central Government, a State Government or
any local authority.
(e) Any other loans or dues