Liquidation of companies

No bro, it depends on the question

siva chaitanya

CA Final

★ 13K+

09-Sep-22 08:46

Okay bro

Thread Starter

Surya Ravi

CA Final

★ 4K+

09-Sep-22 08:47

For example, if the question says that contingent liability is there related to workmen dues, then what u will do bro?, 

siva chaitanya

CA Final

★ 13K+

09-Sep-22 08:48

Overriding preferential creditors. Am I right?

Thread Starter

Surya Ravi

CA Final

★ 4K+

09-Sep-22 08:49

Arey bro, preferential creditors and overriding preferential payments are different

siva chaitanya

CA Final

★ 13K+

09-Sep-22 08:50

If u r saying about preferential creditors, it is correct

siva chaitanya

CA Final

★ 13K+

09-Sep-22 08:50

Okay bro.

Thread Starter

Surya Ravi

CA Final

★ 4K+

09-Sep-22 08:51

But if say, if they given any bill discounted as contingent liability, then we will take into unsecured creditors

siva chaitanya

CA Final

★ 13K+

09-Sep-22 08:51

Okay bro

Thread Starter

Surya Ravi

CA Final

★ 4K+

09-Sep-22 08:52

Yes.Because contingent liabilities are not secured by charge on the assets.They may or may not arise as liability.So they are unsecured.

Shankari C

CA Inter

★ 12K+

09-Sep-22 09:15

If a contingent liability is being crystalised, apply the rules of what you would do with normal creditors.

CA Suraj Lakhotia

Admin

13-Sep-22 16:08