Section 37, The Bankruptcy Act, 2009

(1) In the distribution of the property of a bankrupt thereshall be paid in priority to all other debts– (a) all debts due from the bankrupt to the State at the date of the receiving order and having become due and payable within twelve months next before that time; (b) all wages or salaries (including commission, provided that the amount is fixed or ascertainable at the date of the receiving order) of any employee in respect of services rendered to the bankrupt during four months next before the date of the receiving order, not exceeding Le300,000; (c) all amounts due in respect of compensation under the Workmen’s Compensation Act, the liability of which accrued before the date of the receiving order, subject to that Act; (d) all contributions payable under the National Social Security and Insurance Trust Act, 2001, by the bankrupt, in respect of employed contributors or workmen in an insured trade during twelve months before the receiving order; (e) all amounts due, in respect of contributions payable during the twelve months before the receiving order, by the bankrupt as the employer of any persons under the National Social Security and Insurance Trust Act, 2001. (2) The debts referred to in this section shall rank equally between themselves and shall be paid in full unless the property of the bankrupt is insufficient to meet them, in which case they shall abate in equal proportions between themselves. (3) Subject to section 36 and to the retention of such sums as may be necessary for the costs of administration or otherwise, the debts referred to in this section shall be discharged forthwith so far as the property of the debtor is sufficient to meet them. (4) In the event of a landlord or other person distraining or having distrained on any goods or effects of a bankrupt within three months next before the date of the receiving order, the debts to which priority is given by this section shall be a first charge on the goods or effects so distrained on or the proceeds of the sale thereof: Provided that in respect of any money paid under such charge the landlord or other person shall have the same rights of priority as the person to whom such payment is made. (5) This section shall apply in the case of a deceased person who dies insolvent as if he were a bankrupt and as if the date of his death were substituted for the date of the receiving order. (6) In the case of partners, joint estate shall be applicable in the first instance in payment of their joint debts and the separate estate of each partner shall be applicable in the first instance in payment of his separate debts and if there is a surplus of the separate estates, in proportion to the right and interest of each partner in the joint estate. (7) Subject to this Act, all debts proved in the bankruptcy shall be paid pari passu. (8) Where there is a surplus, there shall be charged on each debt an interest rate of eight percent. (9) Where there is a surplus after the payment of any debt or deductions, such surplus shall be paid to the bankrupt.