Section 154, The Companies Act, 2009

(1) Where a receiver is appointed on behalf of the holdersof any debentures of a registered company secured by a floating charge, or possession is taken by, or on behalf of those debenture holders of any property comprising or subject to the charge, then if the company is not, at the time being wound up, the debts which in every winding up are under the provisions relating to preferential payments in Part XVI to be paid in priority to all other debts, shall be paid out of any assets coming into the hands of the receiver or other person taking possession in priority to any claim for principal or interest in respect of the debentures. (2) In the application of the provisions relating to preferential payments– (a) section 438 shall be construed as if provision for payment of accrued holiday remuneration becoming payable on the termination of employment before or by the effect of the winding-up order or resolution, were a provision for payment of such remuneration becoming payable on the termination of employment before or by the effect of appointment of the receiver or possession being taken ; and (b) the periods of time mentioned therein shall be reckoned from the date of the appointment of the receiver or possession being taken as the case may be, and if such date occurred before the commencement of this Act, the provisions relating to preferential payments which would have applied but for this Act, shall be deemed to remain in force. (3) Any payments made under this section shall be recouped as far as may be out of the assets of the company available for payment of general creditors. Priority of fixed over floating charge. appoint receiver or manager. Advertisement of of receiver and manager. Preferential payment to holders in 104 105 Debenture trust deeds