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Will GM get pending dues in case of Liquidation of company
25-Nov-2023 (In Corporate Law)
I was the General Manager for a reputed pharmaceuticals company based at Mumbai. Since the company is unable to repay its debts, it is going to be liquidated. I have substantial dues pending with the company. Will I be eligible to get my dues from the liquidator. I read somewhere that only workmen are eligible. Hence I am asking this question.
Dear sir,
When the company is in liquidation, Distribution is as per S.529A of companies act, 1956. 1st Preference is given to workers and secured creditors. I think your claim would be ordinary claim. If there is surplus from above two categories, then you may get something.
When the company is in liquidation, Distribution is as per S.529A of companies act, 1956. 1st Preference is given to workers and secured creditors. I think your claim would be ordinary claim. If there is surplus from above two categories, then you may get something.
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Adv. Sunil Kadam
Mumbai | 100+ Answers
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As per Section 530 in The Companies Act, 1956, (Preferential payments.) In a winding up, subject to the provisions of section 529A, all wages or salary (including wages payable for time or piece work and salary earned wholly or in part by way of commission) of any employee, in respect of services rendered to the company and due for a period not exceeding four months within the twelve months next before the relevant date, shall be paid in priority to all other debts. You could fall under the meaning of employee under s/530 as per the employment agreement.
Your profile would not fall under the meaning of " workmen", in relation to a company, means the employees of the company, being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947 ) hence will have impact when to be pari pasu (be at par) with secured creditor.
Your profile would not fall under the meaning of " workmen", in relation to a company, means the employees of the company, being workmen within the meaning of the Industrial Disputes Act, 1947 (14 of 1947 ) hence will have impact when to be pari pasu (be at par) with secured creditor.
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Adv. Rajesh Singh
Mumbai | 25+ Answers
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