The Madhya Pradesh High Court held that where a party obtains a certified copy of an arbitral award, limitation for an application under Section 34 of the Arbitration and…
Govt Dues are below secured creditors, workmen, employees, and unsecured financial creditors u/s 53 of IBC: MCA MoS Harsh Malhotra at Lok Sabha
Update / Judgement Date
06 Feb 2024
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Team — WCP Legal Desk
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1 min read
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The MCA Minister stated that government dues rank below secured creditors, workmen, employees, and unsecured financial creditors under Section 53 of the IBC. This clarification provides clarity on the priority of payments in insolvency cases. The statement emphasizes the protection of employees and creditors in insolvency proceedings. The government's position ensures that dues are paid in a structured manner, protecting the interests of all stakeholders. This clarification is crucial for understanding the hierarchy of payments in insolvency cases.