Under the IBC 2016, the WATERFALL of distribution of liquidation proceeds (Section 53) ranks workmen's dues (24 months prior to commencement) and secured creditors' dues in:

1. Section 53(1) IBC prescribes the LIQUIDATION WATERFALL — order of priority for distributing liquidation proceeds: 2. (a) Insolvency Resolution Process costs and the LIQUIDATION COSTS in full; (b) the following debts which shall RANK EQUALLY between and among the following: (i) workmen's dues for the period of 24 months preceding the liquidation commencement date; (ii) debts owed to a SECURED CREDITOR in the event such secured creditor has relinquished security; (c) wages and any unpaid dues owed to employees other than workmen for the period of 12 months preceding the liquidation commencement date; (d) financial debts owed to UNSECURED CREDITORS; (e) (i) any amount due to the Central Government and the State Government for periods up to 2 years before the liquidation commencement date; (ii) debts owed to a secured creditor for any amount unpaid following the enforcement of security interest; (f) any remaining debts and dues; (g) preference shareholders; (h) equity shareholders. 3. Workmen's dues + secured creditors (who relinquish security) thus rank in SECOND priority — after insolvency/liquidation costs. 4. Hence option B is correct. _Source: Companies Act 2013 (Act 18 of 2013), Govt. of India MCA — Insolvency and Bankruptcy Code 2016, Section 53(1)_