(1) The claims arising out of the matters specified in the Second Schedule shall have priorities in accordance with the following principles, namely:—
(a) Category I will have precedence over all other categories and Category II will have precedence over Category III and so on;
(b) The claims specified in each of the categories, except Category V, shall rank equally and be paid in full, but if the amount is insufficient to meet such claims in full, they shall abate in equal proportions and be paid accordingly;
(c) The liabilities specified in Category V shall be discharged subject to the priorities specified in this section, in accordance with the terms of the secured loans and the priority, inter se, of such loans; and
(d) The question of payment of a liability with regard to a matter specified in a lower category shall arise only if a surplus is left after meeting all the liabilities specified in the immediately higher category.
(2) The provisions of this section shall not in any way affect payment of compensation to the owners of properties sold.
21 Examination of claims.—(1) On receipt of the claims under section 19, the Commissioner shall arrange the claims in the order of priority specified in the Second Schedule and examine the same in accordance with the said order.
(2) If, on examination of the claims, the Commissioner is of the opinion that the amount paid to him under this Act is not sufficient to meet the liabilities specified in any lower category, he shall not be required to examine the liabilities in respect of such lower category.