Amendment status not verified — confirm the current text below against the official source.
Priority of claims.—( 1) The claims arising out of the matters ified in 'the Second Schedule shall have priorities in accordance with following principles, namely:— , ' ..• , (a) Category I will have precedence over all other gOries and Category Ii will have precedence over Category III and on; 14 The claims specified in each of the categories, except Category V, shall rank equally and be paid in full, but if the amount is insufficient to meet such claims in full, they shall abate in equal proportions and be paid accordingly; The liabilities specified in Category V shall be 'discharged subject to the priorities specified in this section in'accordance with the terms of the secured loans and the priority, inter Se, of such loans; and The question of payment of a liability with regard to a matter specified in a lower category shall arise only if a surplus is left after meeting all the liabilities specified in the immediately higher category. ; (2) The provisions of this section shall not in any way affect payment of compensation to the owners of properties sold.