STATE BANK OF INDORE Vs. COMMISSIONER OF PAYMENTS

JUDGEMENT

(1.) These appeals can be disposed of by this common judgment as all of them are against the judgment of the High Court dated 16/12/1997.

(2.) The question which arises for consideration is whether under the provisions of the Sick Textile Undertakings (Nationalisation) Act, 1974 interest amounts, on loans advanced by banks are to be paid in priority. The relevant provisions of the Act are Ss. 3, 4, 5, 8, 9, 21 and 27 which read as follows:

(3.) The appellants filed claims before the Commissioner. The claims were noc just for the loan amounts but also for interest on such loans. The Commissioner disallowed claims for loans given prior to the date the management was taken over. The Commissioner allowed claims only for loans given during the period the management was taken over and up to the appointed day.