law: Companies Act, 1956
  Sec 123    -    Payments of
  
  certain debts out of assets subject to floating charge in priority to claims
  
  under the charge. 
  (1) Where either :
  (a) a receiver is appointed on behalf of the
  
  holders of any debentures of a company secured by a floating charge ; or
  (b) possession is taken by or on behalf of
  
  those debenture holders of any property comprised in or subject to the charge ;
  then, if the company is not at the time in
  
  course of being wound up, the debts which in every winding up are, under the
  
  provisions of Part VII relating to preferential payments, to be paid in
  
  priority to all other debts, shall be paid forthwith out of any assets coming
  
  to the hands of the receiver or other person taking possession as aforesaid in
  
  priority to any claim for principal or interest in respect of the debentures.
  (2) In the application of the provisions
  
  aforesaid, section 530 shall be construed as if the 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 the appointment of the receiver or
  
  possession being taken as aforesaid.
  (3) The periods of time mentioned in the said
  
  provisions of Part VII shall be reckoned from the date of appointment of the
  
  receiver or of possession being taken as aforesaid, as the case may be.
  (4) Where the date referred to in sub-section
  
  (3) occurred before the commencement of this Act, sub-sections (1) and (3)
  
  shall have effect with the substitution, for references to the said provisions
  
  of Part VII, of references to the provisions which, by virtue of sub-section
  
  (9) of section 530, are deemed to remain in force in the case therein
  
  mentioned, and sub-section (2) shall not apply.
  (5) 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.