State Act

THE ANGLO-FRENCH TEXTILES LIMITED (ACQUISITION AND TRANSFER OFTEXTILE UNDERTAKING) ACT, 1986

16. The claims arising out of the matters specified in the Second Schedule shall have priorities in accordance with the following principles, namely: -- (a) Category-I shall have precedence over all other categories and Category-II shall have precedence over Category-III; (b) the claim specified in each category except Category-II shall rank equally and be paid in full but if the amount is insufficient to meet such claims in full, they shall abate in equal proportions and be paid accordingly; (c) the liabilities specified in Category-II shall be discharged subject to the priorities specified in this section, in accordance with the terms of the secured loans and the priority, inter se, of such loans; and (d) the question of payment of a liability with regard to a matter specified in a lower category shall arise only if a surplus is left after meeting all the liabilities specified in the immediately higher category.