The Smith, Stanistreet and Company Limited (Acquisition and Transfer of Undertakings) Act,1977
(See sections 18,19,20,22 and 24)
ORDER OF PRIORITIES FOR THE DISCHARGE OF LIABILITIES OF THE COMPANY
POST-TAKE-OVER MANAGEMENT PERIOD
(a) Wages, salaries and other dues of the employees of the Company.
(b) Loans advanced by the Central Government.
(c) Loans advanced by Indian Drugs and Pharmaceuticals Limited.
(d) Loans advanced by banks guaranteed by the Central Government.
(e) Credit availed of for purposes of trade or manufacturing operations.
(a) Revenue, taxes, cesses, rates or other dues to the Central Government or a State Government.
(b) Sales tax, rates and taxes, contributions to be made to the Employees’ State Insurance Fund and Additional Dearness Allowances payable to employees.
PRE-TAKE-OVER MANAGEMENT PERIOD
Arrears in relation to provident fund, salaries and wages and other amounts due to employees of the Company.
Principal amount due in relation to all secured loans.
Amounts due by way of interest due in relation to the secured loans referred to in category IV.
Revenue, taxes, cesses, rates or any other dues to the Central Government, a State Government, a local authority or a State Electricity Board.
(a) Any credit availed of for purposes of trade or manufacturing operations.
(b) Any other dues.