Priority of claims

The claims arising out of the matters specified in the Schedule shall have priorities in accordance with the following principles, namely: (a) category I shall have precedence over all other categories and category II shall have precedence over category III and so on; (b) the claims specified in each category except category III shall rank equally and be paid in full,, but if the amount is insufficient to meet such claims in Kill, they shall abate in equal proportions and be paid accordingly; (c) the liabilities specified in category III shall be discharged subject to the priorities specified in this section, in accordance with the terms of the secured loan and the priority inter se, of such loans; and (d) the question of payment of liability with regard to a matter specified in a succeeding category shall arise if a surplus is left after meeting all the liabilities specified in the immediately preceding category.