The Industries (Development And Regulation) Act, 1951
29D. Debts incurred by the authorised person to have priority
1[29D. Debts incurred by the authorised person to have priority. Every debt arising out of any loan obtained by the authorised person for carrying on the management of, or exercise functions of control in relation to, an industrial undertaking or part thereof, the management of which has been taken over under section 18A or section 18 AA or section 18 FA, –
(a) Shall have priority over all other debts, whether secured or unsecured, incurred before the management of such industrial undertaking was taken over,
(b) Shall be a preferential debt within the meaning of section 530 of the Companies Act, 1956 (1 of 1956).
And such debts shall rank equally among themselves and be paid in full out of the assets of the industrial undertakings unless such assets are insufficient to meet them, in which case they shall abate in equal proportions.]
1. Ins. by Act 72 of 1971, sec. (w.e.f. 01-11-1971).