Section 36: Priority of debts (As amemended by Section 4 of Bankruptcy (Amendment) Act 1992.)

(1) In the distribution of the property of a bankrupt there shall be paid in priority to all other debts-
(a) all debts due from the bankrupt to the State at the date of the receiving order and having become due and payable within twelve months next before that time;
(b) all wages or salary (including commission, provided that, the amount thereof is fixed or ascertainable at the date of the receiving order) of any employee in respect of services rendered to the bankrupt during four months next before the date of the receiving order, not exceeding N300;
(2) The foregoing debts shall rank equally between themselves and shall be paid in full unless the property of the bankrupt is insufficient to meet them, in which case they shall abate in equal proportions between themselves.
(3) Subject to the provisions of section 35 of this Act and 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 is 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 within three months next before the date of the receiving order, the debts to which priority is given by this section 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 of 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. If there is a surplus of the separate estates in proportion to the right and interest of each partner in the joint estate.
(7) Subject to the provisions of this Act, all debts proved in the bankruptcy shall be paid pari passu.
(8) If 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 at the rate of one per cent above the prevailing bank rate on all debts proved in the bankruptcy.