Additional Emoluments (Compulsory Deposit) Act,1974

Act No : 37

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Section : Amounts due to be first charge in the case of insolvency orliquidation of the employer.

12. Amounts due to be first charge in the case of insolvency or liquidation of the employer. (1) Where any amount required by this Act to be credited to any Deposit Account or remitted to a nominated authority has not been so credited or remitted by any employer, the amount in respect of which such omission or failure was made, together with interest due thereon calculated at the rate specified in sub- section (1) of section 7, shall, in the event of the employer being adjudicated by any court to be insolvent or, being a company is ordered by any court to be wound up, be deemed to be first charge on the assets of the insolvent or of the company, as the case may be, and shall have priority over all other debts, and be paid in full. 507 (2) The court shall cause the sum which is required, under sub- section (1), to be paid in priority to all other debts to be remitted to the. nominated authority for crediting the same to the appropriate Deposit Account.

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