16LLDebts incurred and investments made by the authorised person to have priority
1[ 2[16LL. Debts incurred and investments made by the authorised person to have priority.-- Every debt arising out of any loan or any other financial accommodation obtained by the authorised person for carrying on the management of, or exercising functions of control in relation to, the whole or any part of a tea undertaking or tea unit, the management of which has been taken over or is purported to have been taken over under section 16D or section 16E or section 16-I,--
(a) shall have priority over all other debts, whether secured or unsecured, incurred before the management of such tea undertaking or tea unit was taken over;
(b) shall be a preferential debt within the meaning of section 530 of the Companies Act, 1956 (1 of 1956),
and all such debts shall rank equally among themselves and be paid in full out of the assets of the tea undertaking or tea unit, unless such assets are insufficient to meet them, in which case they shall be recoverable from the owner of the tea undertaking or tea unit as arrears of land revenue notwithstanding that the period of management or control has ended due to expiry of the period for which it was taken over or due to cancellation of the order under section 16H or in pursuance of the order of any court.]]
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1. Ins. by Act 75 of 1976, s. 2 (w.e.f. 11-6-1976).
2. Ins. by Act 68 of 1980, s. 4 (w.e.f. 11-6-1976)
- 16A Definitions
- 16B Power to cause investigation to be made in relation to a tea undertaking or tea unit
- 16C Power of Central Government on completion of investigation
- 16D Power of Central Government to assume management or control of tea undertaking or tea unit in certain cases
- 16E Power to take over tea undertaking or tea unit without investigation under certain circumstances
- 16F Contracts in bad faith, etc., may be cancelled or varied
- 16G Application of Act 1 of 1956
- 16H Power of Central Government to cancel notified order under section 16D or 16E
- 16 Tea nurseries
- 16J Power of Central Government to make certain declarations in relation to tea undertakings or tea unit
- 16K Power of Central Government to call for report on the affairs and working of a managed tea undertaking or tea unit
- 16L Preparation of an inventory of the assets and liabilities and list of members and creditors of managed tea undertaking or tea unit
- 16LL Debts incurred and investments made by the authorised person to have priority
- 16M Bar of suits and other proceedings in relation to the tea undertakings or tea units
- 16N Rules made under Act 65 of 1951 to apply