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Section 204: Preferential claims

Insolvency Act · PART III: WINDING UP AND ALTERNATIVES

consolidated text (as at 2017, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.

204. Preferential claims (1) Subject to the rights of any of the persons referred to in subsection (2), a receiver shall pay moneys received by him to the chargee of the charge by virtue of which he was appointed in or towards satisfaction of the debt secured by the charge. (2) The following persons shall be entitled to payment out of the property of a company in receivership in priority to the chargee of the charge, and in the following order of priority— (a) first, the receiver for his expenses and remuneration and any indemnity to which he is entitled from out of the property of the company; [Issue 3] I14 – 118 Revised Laws of Mauritius (b) second, any amounts secured by any charge that ranks in priority to the charge in relation to which the receiver was appointed; and (c) third, and notwithstanding anything to the contrary in the Code Civil Mauricien, where the company is in liquidation, the persons entitled to preferential claims to the extent and in the order of priority required by the Fourth Schedule. (3) The receiver shall hold and retain from any property of a company subject to the charge or any proceeds of realisation of such property, sufficient funds or value of property to discharge any claims under subsection (2) (b) and (c) on trust under the Trusts Act or otherwise for the benefit of the persons entitled.

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