Settlement of Claims - Liquidation
We have rented first floor of our building to a company in 2013. But the rent from July 2017 is still pending and we have filed a case before the rental court. Now the court has stopped the case stating that the company is under liquidation. On enquiry, we came to know that the liquidator will settle the claims from the assets of the company. According to our knowledge, there are a lot creditors. How we will be able to get the rent amount? Please advise.
Submit your claim against the company to the liquidator. The liquidator will settle the company's debts after deducting the liquidation expenses including the liquidator fees in the following order: (1) amounts due to the employees, (2) amounts due to the state, (3) rent due to landlord who leased the property, and (4) other due amounts each in accordance to its preference with respect to relevant laws. After clearing the company debts, the liquidator should pay up the partners the value of their monetary shares of capital and to allocate the surplus among them in proportion to the profit quota of each. The assets of the company will be distributed among the partners by sorting, following the principles prescribed for the distribution of the joint property, unless the articles of the association of the company stipulate otherwise.