19. Priority of claims.-
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 shall have precedence over all categories and category II shall have precedence over category III and so on;
(b) the claims specified in each of the categories, except category IV, 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 proportion and be paid accordingly;
(c) the liabilities specified in category IV 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 discharging any 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.