Priorizy of claims?

The claims arisipg out of the matters specified in the Second Schedule shalr have priorities in accordance with the fbllowing principles, naniely:—

(al Categbry 1 will have precedence ever #11 other categories and Category U. will have a precedence over Cory III and so on;

(1) The claims specified in each ofthe dategories, =ept Category V. shall rank equally and be pid in T.ii; but if the amount is insufficient to meet ,sucb claims-'in full, .they. Iball. bate' in equal proportions and be 'paid accordingly;

(cJ The Iiabilities specified in Category V shall 'be dis4harged subjeci to the pnorities specified in this sectlon in accordance with the terms of the secured loans and the priority, inter se,.cf such loans; and

(d) The- question ofpayment of a. liability with regard. to a matter specified in a lower category shall arise pnly if a surplus is left after meeting - all 'the liabilities specified in the immediately higher'catg9ry .