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TMI BlogDistribution of Assets by the Liquidator [ Section 53 ]X X X X Extracts X X X X X X X X Extracts X X X X ..... CD to an end by way of dissolution. Distribution of proceeds from the sale of the liquidation assets [ Section 53(1) ] Notwithstanding anything to the contrary contained in any law enacted by the Parliament or any State Legislature for the time being in force, the proceeds from the sale of the liquidation assets shall be distributed in the following order of priority and within such period and in such manner as may be specified, namely :- (a) the insolvency resolution process costs and the liquidation costs paid in full; (b) the following debts which shall rank equally between and among the following :- (i) workmen's dues for the period of twenty-four months preceding the liquidation commencement date; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant recipient shall be distributed after such deduction. Explanation .-For the purpose of this section- (i) it is hereby clarified that at each stage of the distribution of proceeds in respect of a class of recipients that rank equally, each of the debts will either be paid in full, or will be paid in equal proportion within the same class of recipients, if the proceeds are insufficient to meet the debts in full; and (ii) the term workmen's dues shall have the same meaning as assigned to it in section 326 of the Companies Act, 2013 . Commencing Distribution Regulation 42 of IBBI of (Liquidation Process) Regulation, 2016 Subject to the provisions of section 53 , the liquidator sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Process Regulation, 2016 (1) The liquidator may, with the permission of the Adjudicating Authority, distribute amongst the stakeholders, an asset that could not be sold, assigned or transferred due to its peculiar nature or other special circumstances. (2) The application seeking permission of the Adjudicating Authority under sub-regulation (1) shall- (a) identify the asset; (b) provide a value of the asset; (c) detail the efforts made to sell the asset, if any; and (d) provide reasons for such distribution. Liquidator to realize uncalled capital or unpaid capital contribution Regulation 40 of IBBI (Liquidation Process) Regulation, 2016 (1) The liquidator shall realize an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d cause injustice to shareholders who have invested public money in Infrastructure Leasing Financial Services Ltd. and its group companies and therefore the pro-rata distribution as proposed by the Central Government was accepted. Swiss Ribbons Pvt. Ltd. Anr. Vs. Union of India Ors. - SC Dated 25.01.2019 There is an intelligible differentia between the financial debts and operational debts, which are unsecured, which has direct relation to the object sought to be achieved by the Code. It can be seen that unsecured debts are of various kinds and as long as there is some legitimate interests sought to be protected, having relation to the object sought to be achieved by the statute in question, Article 14 of the Constitu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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