1. Notwithstanding anything contained in this Act or any other law for the time being in force, in the winding up of a company,
a. workmen's dues; and
b. debts due to secured creditors to the extent such debts rank under clause (iii ) of the proviso to sub-section (1 ) of section 325 pari passu with such dues, shall be paid in priority to all other debts:
Provided that: in case of the winding up of a company, the sums towards wages or salary referred to in sub-clause (i ) of clause (b ) of sub-section (3 ) of section 325, which are payable for a period of two years preceding the winding up order or such other period as may be prescribed, shall be paid in priority to all other debts (including debts due to secured creditors), within a period of thirty days of sale of assets and shall be subject to such charge over the security of secured creditors as may be prescribed.
2. The debts payable under the proviso to sub-section (1 ) shall be paid in full before any payment is made to secured creditors and thereafter debts payable under that sub-section shall be paid in full, unless the assets are insufficient to meet them, in which case they shall abate in equal proportions.
Legal Commentary & Landmark Judgments: Section 326
Section 326 of the Companies Act, 2013 confers overriding preferential status upon workmen's dues and debts owed to secured creditors ranking pari passu with workmen, mandating super-priority payment of workmen's wages within thirty days of asset realization.
When representing trade unions or official liquidators, file an application under Section 326 supported by audited labor rolls establishing wage arrears within the 24-month statutory lookback. Resist attempts by secured asset reconstruction companies to repatriate auction proceeds until the 30-day super-priority allocation for workmen is deposited into a dedicated escrow account.