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TMI Blog2001 (7) TMI 1176X X X X Extracts X X X X X X X X Extracts X X X X ..... hould be given to the provident fund dues and, therefore, dividend cannot be apportioned in pari passu with the secured creditors as section 11 will prevail over the provisions of section 529A. It is also contended that the Industrial Tribunal has awarded that workers are entitled to salary during lay off period. Even though salary for lay off period as directed by the Tribunal was admitted by the Official Liquidator, the provident fund dues on the salary paid during the lay off period was not admitted by him. 1. The first question to be considered is whether the stand of the Official Liquidator is correct in not admitting the claim for provident fund contribution on salary awarded by the Industrial Tribunal as Tribunal s award was su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and Official Liquidator is directed to include that also as admitted claim of the employees. 3. Section 529A of the Companies Act reads as follows : "529A. Overriding preferential payments. (1) Notwithstanding anything contained in any other provision of this Act or any other law for the time being in force, in the winding up of a company ( a )workmen s dues; and ( b )debts due to secured creditors to the extent such debts rank under clause ( c ) of the proviso to sub-section (1) of section 529 pari passu with such dues, shall be paid in priority to all other debts. (2) The debts payable under clause ( a ) and clause ( b ) of sub-section (1) shall be paid in full, unless the assets are insufficient to meet them, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1909 (3 of 1909) or under section 61 of the Provincial Insolvency Act, 1920(5 of 1920) or under section 530 of the Companies Act, 1956 (1 of 1956) are to be paid in priority to all other debts in the distribution of the property of the insolvent or the assets of the company being wound up, as the case may be. Explanation .in this sub-section and in section 17, insurance fund means any fund established by an employer under any Scheme for providing benefits in the nature of life insurance to employees, whether linked to their deposits in provident fund or not, without payment by the employees of any separate contribution or premium in that behalf. (2) Without prejudice to the provisions of sub-section (1), if any amount is due from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A will not be curtailed. Hence the contention that over and above section 529A provident fund claim should be given prior charge than secured creditors cannot be considered and it can be considered only in pari passu along with claim of secured creditors under section 529A. 6. The contention raised by the counsel for the secured creditor bank that provident dues payable to the employees provident fund cannot be claimed as workmen s dues under section 529A also cannot be accepted. According to the counsel, since no provident fund is maintained by the company it is not workmen s dues. Section 529 (3)( i ) details workmen s dues . Section 529 ( 3 )( b )( iv ) states as follows : "( iv )all sums due to any workman from a provident fun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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