State Act

THE UNITED PROVINCES ENCUMBERED ESTATES ACT, 1934

16. The Special Judge shall rank all debts for priority,provided that debts in the earlier of the following classes shall have priority over those in the later classes : Class (1) Debts recoverable under the Agra Tenancy Act, 19261, the Oudh Rent Act, 18862, and the Land Revenue Act, 1901 ; Class (2) Public debts due to the Government and public debts due to a local authority creating a charge on immovable property ; Class (3) Debts secured upon property against which the Collector may take action under the provisions of section 24 up to the value of the security ; 1[ Class (3-A) Secured debts which are not legally recoverable otherwise than out of the compensation and rehabilitation grant payable to the landlord ;] Class (4) Other secured debts ; Class (5) Debts due on account of goods supplied or services rendered ; and Class (6) Unsecured debts due to a local authority ; debts falling into class (3) in excess of the value of security and other unsecured debts.