Singapore legislation
Section 43
Section 43
Priority of debts
(1)
In the distribution of the property of a bankrupt there shall be paid in priority to all other debts —
all local rates and property tax due from the bankrupt at the date of the receiving order and having become due and payable within 12 months next before that time;
income tax assessed on the bankrupt up to 31st December next before the date of the receiving order and not exceeding in the whole one year’s assessment;
all wages or salary of any clerk, servant, labourer or workman not exceeding $1,000 for each whether payable for time or piece work or whether or not payable wholly or in part by way of commission in respect of services rendered to the bankrupt during the period of 5 months next before the date of the receiving order or the date of the termination of his service if the latter occurs within 12 months of and precedes the date of the receiving order:Provided that, without prejudice to the conditions and restrictions imposed upon contracts of service by the Employment Act [Cap. 91] where any clerk, servant, labourer or workman has entered into a contract for the payment of his wages or any part thereof in a lump sum at the end of the year of hiring, the priority under this section shall extend to the whole of such sum, or a part thereof, as the court may decide to be due under the contract, proportionate to the time of service up to the date of the receiving order;
all amounts due under the provisions of the Central Provident Fund Act [Cap. 36] in respect of contributions payable during the 12 months before the date of the receiving order by the bankrupt as the employer of any person; and
subject to section 19 of the Workmen’s Compensation Act [Cap. 354], all amounts due to a workman or an insurer in respect of any compensation or liability for compensation under that Act which accrued before the date of the receiving order.
(2)
The foregoing debts 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)
In the case of partners the 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.
(4)
If there is a surplus of the separate estates it shall be dealt with as part of the joint estate.
(5)
If there is a surplus of the joint estate it shall be dealt with as part of the respective separate estates in proportion to the right and interest of each partner in the joint estate.
(6)
Subject to this Act, all debts proved in the bankruptcy shall be paid pari passu.
(7)
If there is any surplus after payment of the foregoing debts it shall be applied in payment of interest from the date of the receiving order at the rate of 4% per annum on all debts proved in the bankruptcy.
(8)
Where a debt has been proved upon a debtor’s estate and the debt includes interest or any pecuniary consideration in lieu of interest, the interest or consideration shall for the purposes of dividend be calculated at a rate not exceeding 4% per annum, without prejudice to the right of a creditor to receive out of the estate any higher rate of interest to which he may be entitled after all the debts proved in the estate have been paid in full.
(9)
Nothing in this section shall alter the effect of section 3 of the Partnership Act 1890 [U.K. 1890 c. 39].
(10)
Where an interim receiver has been appointed before the making of the receiving order the date of the appointment shall for the purposes of this section be deemed to be the date of the receiving order.