Which of the following is not a preferential creditors
A)All sum due to employee from a provident fund, pension fund, gratuity fund or any other fund maintain for welfare of employee.
B)Compensation under workmen's compensation act.
C)Amount due under empoyees state insurance act for 12 months previous to the winding up
D)Amount due to employee undeer amalgamation or reconstruction

Question

Quizplus · Accepted Answer

Preferential creditors are those who have the right to be paid before other unsecured creditors in the event of a bankruptcy or liquidation. Choices A, B, and C are considered preferential because they relate to employee benefits and statutory dues, which are typically given priority in bankruptcy proceedings. However, D (Amount due to employee under amalgamation or reconstruction) does not fall under the typical categories of preferential debts, as preferential status is generally not granted based on corporate restructuring events like amalgamation or reconstruction.

Which of the Following Is Not a Preferential Creditors