Where any employer has entered into a contract in respect of any insurers of any liability under this Act to any employee, then the employer event becoming insolvent or making a composition or arrangement scheme with his creditors, or if the company employer in the company event having commenced to be wound up, the employer rights against the insurers as respect that liability shall, notwithstanding anything in any law for the time that was in force relating to insolvency or companies winding up be transferred to and vest in the employee, and upon any transfers the insurers shall have the rights that are same and remedies and be subject to the same liabilities as if they were employer so however that the insurers shall not be under any big liability to the employee then they would have been under the employer.
The insurers liability of the employee is less than the employer liability to the employee, the employee may prove for the balance in the proceedings insolvency or liquidation.
Where in any case as sub-section (1) as is referred the contract of the employer with the insures is voidable or void by non-compliance reason on the part of the employer with the terms or contract conditions (other than a stipulation for the premia payment), the provisions of that sub-section shall apply as if the contract were not voidable or void and the insurers shall be entitled to prove in the proceedings in the insolvency or for the amount of liquidation to the employee for the amount paid .
Provided that this sub-section provisions shall not apply in any case in which the employee fails to give insurers notice of the accident happening and of the disablement result as soon as practicable after he becomes aware of the institution of the liquidation proceedings or insolvency.
There shall be deemed among the debts to be included which under section 49 of the Presidency towns Insolvency Act, 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 in the distribution of an insolvent property or in the assets distribution of a company being wound up up to be paid in priority to every other debts, the amounts due in respect of the liability of any compensation where for accrued before the order date of the insolvent adjudication of the insolvent or the commencement date of the winding up as the case may be and those Acts shall have effect accordingly.
Where the compensation is a half-monthly payment the amount due in respect thereof shall, for this section purposes, be taken of the lump-sum amount for which the half-monthly payment could, if redeemable, be redeemed if application were made under section 7 for that purpose and a certificate of the Commissioner as the amount of such sum shall be thereof conclusive proof.
The sub-section (4) provisions shall apply in any amount in the case for which an entitled insurer is prove under sub-section (3), but otherwise those provisions shall not apply where the company being wound up has entered into such a contract with insurers as is referred to in sub-section (1) or insolvent .
This section shall not apply where a wound up company voluntarily merely for to reconstruction purposes or with another company amalgamation.
Section 326: Preferential Payments Overriding.
Notwithstanding anything contained in this Act or any other law for the time being in force in the company winding up.
Dues of the workmen’s.
Secured creditors debts to the extent such debts rank under caluse (iii) to the sub-section proviso of section 325 pari passu with such dues.
shall be paid to all other debts in priority,
Provided that in the winding company case, the sums towards salary or wages referred to in sub-clause (i) of the clause (b) of sub-section (3) of section 325, that are payable for a two years period following the winding up order or such other period that may be prescribed, shall be paid to all other debts in priority (including debts due to secured creditors), within thirty days period of assets of sale and shall be subject to such charge over the secured creditors security that may be prescribed.
The payable debts to sub-section (1) under the proviso shall be paid in full before any payment is made to the secured creditors and debts thereafter payable under the sub-section that can be paid fully unless the insufficient assets to meet them, in which case they shall abate in proportions that are equal.
In a winding up the provisions of section 326 subject there shall be paid to all other debts in priority
a, all taxes, revenues, rates and cesses due from the Central government to the company or a State Government or at the relevant date to the local authority and having become due and within twelve months before immediately and date.
all salary or wages including payable wages for piece work or time and wholly earned salary or by way of commission of any employee in respect of rendered service to the company and due for not exceeding four months period immediately within twelve months before the relevant date subject to the condition that the payable amount to any workman under this clause shall not exceed as may be notified such amount;
all accrued renumeration holiday to any employee become payable or in case of his death claiming any other person under him on the employment termination before or winding up order or as the case may be, the company dissolution.
unless the company is being wound up merely voluntarily for the reconstruction purposes or with another company amalgamation all due amount due in contributions respect payable during the twelve months period immediately before by the company relevant date as the employee of the persons under the Employees State Insurance Act, 1948 (34 of 1948) or any other law for the time that was in force.
unless the company has, at the winding up commencement under such a contract with any insurer as is mentioned in section 14 of the Workmen’s Compensation Act 1923 (8 of 1923), capable rights of being transferred to and vested in the workmen all amount of any compensation in respect or liability for compensation under the said Act in respect to death or disablement of the company employee.
Provided that where any compensation under the said Act is a weekly payment the payable amount under this clause shall betaken to the amount of the lump sum for which such weekly payment could, if redeemable be redeemed, if the employer under this Act has made an application.
all sums from provident fund due to an employee the pension fund the gratuity fund or any other fund of the employee welfare maintained by the company and
the expenses of any investigation held in pursuance of sections 213 and 216 in so far as by the company they are payable.
Where any payment has been made to the company employee on wages account or salary or accrued remuneration of holiday himself or in case of his death to any other person claiming through him, out of advanced money for that purpose by some person , the person by whom the advanced money shall, in a winding up have priority right in respect of the money so advanced and the amount paid-up by which the sum in respect of which the employee or other person in is right would have been entitled to priority in the winding up has been reduced by the reason of payment having been made.