COMMISSIONER OF PAYMENTS Vs. KISHNI DEVI

JUDGEMENT

(1.) W.P.(C) No. 8337 of 2002 & CM Nos. 9016 of 2006 & 16397 of 2007 (for stay)

(2.) Unknown to them ATML was sinking and had to be rescued by the central government. By a notification dated 7th June 1971 issued under Section 18A of the Industries (Development and Regulation) Act. 1971 (ID&R Act) ATML was taken over by the central government. Later it was nationalized under the Sick Textile Undertakings (Nationalisation) Act, 1974 (STUN Act"). Under Section 17 of the STUN Act a Commissioner of Payments ('Commissioner') was appointed by the Central Government for settling the claims of creditors and depositors of ATML.

(3.) Kishni Devi and Ganga Dutt Gupta presented their claims before the Commissioner under Section 20 of the STUN Act. More than ten years after they had placed their deposits with ATML, on 4th September 1981 the Commissioner disallowed their claims. He placed their claims under category VI (b) of the Second Schedule to the STUN Act. i.e. under the category "any other dues". It was held that since the compensation amount in respect of the ATML had already been exhausted by meeting the liability under the higher category I. and therefore the Commissioner was "precluded from examining the claims of any lower category under Section 22(1) of the STUN Act."