Priority of debts

(1) In the distribution of the property of a bankrupt and in the distribution of the assets of any company being wound-up under the provisions of any law in force in Belize relating to companies, there shall be paid in priority to all other debts, (a) all local rates, land and property or other tax due from the bankrupt or the company at the date of the receiving order or, as the case may be, the commencement of the winding-up and having become due and payable within twelve months next before such time; (b) all wages or salary of any clerk or servant in respect of services rendered to the bankrupt or the company during four months before the date of the receiving order, or, as the case 42 may be, the commencement of the winding- up not exceeding two hundred and fifty dollars; (c) all wages of any labourer or workman, not exceeding one hundred and twenty-five dollars, whether payable for time or piece work, in respect of services rendered to the bankrupt or the company during six months before the date of the receiving order, or, as the case may be, the commencement of the winding-up, Provided that where any labourer has entered into a contract for the payment of a portion of his wages in a lump sum at the end of the term of hiring, he shall have priority in respect of the whole of such sum or part thereof as the court may decide to be due under the contract proportionate to the time of service up to the date of the receiving order, or, as the case may be, the commencement of the winding-up. (2) The foregoing debts shall rank equally between themselves, and shall be paid in full, unless the property of the bankrupt is or the assets of the company are insufficient to meet them, in which case they shall abate in equal proportions between themselves. (3) Subject to the retention of such sums as may be necessary for the costs of administration or otherwise, the foregoing debts shall be discharged forthwith, so far as the property of the debtor, or the assets of the company, as the case may be, is or are sufficient to meet them. (4) In the event of a landlord or other person distraining or having distrained on any goods or effects of a bankrupt or a company being wound-up within three months next before the date of the receiving order or the winding-up order respectively, the debts to which priority is given by this section 43 shall be a first charge on the goods or effects so distrained on, or the proceeds of the sale thereof, Provided that in respect of any money paid under any such charge, the landlord or other person shall have the same rights or priority as the person to whom such payment is made. (5) This section shall apply in the case of a deceased person who dies insolvent, as if he were a bankrupt, and as if the date of his death were substituted for the date of the receiving order. (6) In the case of partners, the joint estate shall be applicable in the first instance in payment of their joint debts, and the separate estate of each partner shall be applicable in the first instance in payment of his separate debts. (7) Where there is a surplus of the separate estates, it shall be dealt with as part of the joint estate. (8) If there is a surplus of the joint estate, it shall be dealt with as part of the respective separate estates in proportion to the right and interest of each partner in the joint estate. (9) Subject to this Act, all debts proved in the bankruptcy shall be paid pari passu. (10) Where there is any surplus after payment of the foregoing debts, it shall be applied in payment of interest from the date of the receiving order or, as the case may be, the commencement of the winding-up, at the rate of six per centum per annum on all debts proved in the bankruptcy, or the winding-up.