Under Section 530(1)(d) of the Companies Act, 1956, the Employees State Insurance Corporation is entitled to a priority debt only for the contribution payable to it during the twelve months next before the appointment of the Provisional Liquidator.

K.Sahai, J.

1. Item No. 1: Report of the Official Liquidator dated 13-5-1958, at flag 99 re: payment of fees to Mr. Sreenath Singh:

Mr. Sreenath Singh, the Advocate for the Official Liquidator, has submitted a bill for Rs. 522.50 on the basis that he worked for nineteen days between 2-4-1957, and the end of May 1958. The office has checked and found that work was actually done by Mr. Sreenath Singh in sixteen days. The Official Liquidator has, however, recommended that, as Mr. Sreenath Singh claims to have actually done work on nineteen days, he should be allowed the entire amount of Rs 52250 Mr. Sreenath Singh has stated that he would prefer have sixteen days fee as the office and the Official Liquidator have found that he actually worked for that number oF days only. In my opinion, Mr. Sreenath Singhs stand is perfectly appropriate and correct. Sanction is, therefore, accorded to the payment of sixteen days fees, i. e. Rs 440/-only to Mr. Sreenath Singh on account of his fees for the period in question.

Item No. 2: Report of the Official Liquidator dated the 24th July, 1958, at flag 99A re list or creditors:

2 The Official Liquidator has submitted the list of creditors and has prayed for an appointment when the claims would be heard in court. Let 2-9-1958, be fixed for the purpose. The Official Liquidator should immediately issue notice to all the creditors.

3. As requested by the Official Liquidator sanction to spend a sum of Rs. 35.05 in connection with postal expenses is accorded.

4. Sanction to withdraw a sum of Rs. 25/- on account of contigent expenses is also accorded.

Item No. 3. Report of the Official Liquidator dated 9-5-1958, at flag 100 re. claim of the Employees State Insurance Corporation:

5. The Employees State Insurance Corporation has claimed Rs. 476/- from the Official Liquidator under Section 94 of the Employees State Insurance Act, 1948, and it claims that the entire amount be treated as preferential claim. On the other hand, the Official Liquidator has reported that the entire amount cannot be treated as preferential claim. In his opinion, the sum of Rs. 87/- only can be treated as preferential claim, and the Corporation has to be treated like any other creditor in respect of the balance of its claim, viz., Rs. 389/-.

6. Sec.230 of the Indian Companies Act, 1913 , gives a list of preferential payments. Section 94 of the Employees State Insurance Act, 1948, reads:

"There shall be deemed to be included among the debts which, ......under Sec.230 of the Indian Companies Act 1913 (VII of 1913), are, in the distribution of the property of the insolvent or in the distribution of the assets of a company being wound up, to be paid in priority to all other debts, the amount due in respect of any contribution or any other amount payable under this Act the liability wherefor accrued before the date of the order of adjudication of the insolvent or the date of the winding up, as the case may be."

I have omitted those parts of the section which are irrelevant for the present purpose.

7 In a case where Sec.230 of the Indian Companies Act, 1913 , is applicable, therefore, the entire amount due in respect of any contribution to the Employees State Insurance Corporation is to be paid in priority to all other debts. In the present case, however, the Act of 1913 does not apply. The Companies Act of 1956 came into effect on 1-4-1956, and the appointment of the Provisional Liquidator in this case took place on 25-9-1956. That being so, the Act of 1956 is applicable in the present liquidation proceeding.

8. Clause (d) of Sub-section (1) of Sec. 530 of the Act of 1956 provides:

"(d) unless the company is being wound up voluntarily merely for the purpose of reconstruction or of amalgamation with another company, all amounts due, in respect of contribution payable during the twelve months next before the relevant date, by the company as the employer of any persons, under the Employees State Insurance Act, 1948 (XXXIV of 194