Chapter V COMMISSIONERS OF PAYMENTS

12.

1. (1) For the purpose of disbursing the amounts payable to the owner of the specified textile undertaking the State Government shall, by notification in the Official Gazette, appoint such person as it may think fit to be the Commissioner of Payments and different persons may be appointed for disbursing the amounts payable to different owners.
2. (2) The State Government may appoint such other persons as it may think fit to assist the Commissioner and thereupon the Commissioner may authorise one or more of such persons to also exercise all or any of the powers exercisable by him under this Act, and different persons may be authorised to exercise different powers.
3. (3) Any person authorised by the Commissioner to exercise any powers may exercise those powers in the same manner and with the same effect as if they have been conferred on that person directly by this Act and not by way of authorisation.
4. (4) The salaries and allowances of the Commissioner and other persons appointed under this section shall be defrayed out of the Consolidated Fund of the State.

13.

1. (1) The State Government shall, within ninety days from the specified date, pay in cash to the Commissioner for payment to the owner of the specified textile undertaking, an amount equal to the amount specified against the specified textile undertaking in First Schedule after deducting there from any amount paid under clause
   • (b) of sub-section
2. (4) of section 11 and shall also pay to the Commissioner such sums as may be due to the owner of the specified textile undertaking under sub-section
3. (2) of section 7.
4. (2) A deposit account shall be opened by the State Government, in favour of the Commissioner, in the public account of the State, and every amount paid under this Act to the Commissioner shall be deposited by him to the credit of the said deposit account in the public account of the State and thereafter the said deposit account shall be operated by the Commissioner.
5. (3) Separate records shall be maintained by the Commissioner in respect of each specified textile undertaking in relation to which payments have been made to him under this Act.
6. (4) Interest accruing on the amounts standing to the credit of the deposit account referred to in sub-section
7. (2) shall accrue to the benefit of the owners of the specified textile undertakings.

14.

1. (1) The Corporation shall be entitled to receive to the exclusion of all other persons, any money due to the specified textile undertaking, realised after the appointed day, notwithstanding that the realisations pertain to a period prior to the appointed day.
2. (2) Save as otherwise provided in this Act, the liabilities in relation to the textile undertaking in respect of any period prior to the appointed day shall be the liabilities of the owner of that specified textile undertaking.

15. Every person having a claim other than the claim relating to gratuity or compensation for retrenchment or closure against the owner of the specified textile undertaking shall prefer such claim before the Commissioner within thirty days from the specified date. Provided that if the Commissioner is satisfied that the claimant was prevented by sufficient cause from preferring the claim within the said period of thirty days, he may entertain the claim within a further period of thirty days but not thereafter.

16. The claims arising out of the matters specified in the Second Schedule shall have priorities in accordance with the following principles, namely:,

1. (a) Category I shall have precedence over all other categories and category II shall have precedence over categories III and IV; and category III shall have precedence over category IV;
2. (b) the claims arising out of matters specified in each category except category III 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 proportions and be paid accordingly;
3. (c) the liabilities specified in category III shall be discharged in the manner agreed to by the State Government of one part with the banks and institutions of other parts subject to the priorities specified in this section, in accordance with the terms of the secured loans and the priority interse of such loans; and
4. (d) the question of payment of a 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.

17.

1. (1) On receipt of the claims under section 15, the Commissioner shall arrange the claims in the order of priority specified in the Second Schedule and examine the same in accordance with the said order.
2. (2) If on examination of the claims, the Commissioner is of the opinion that the amount paid to him under this Act is not sufficient to meet the liabilities specified in any lower category, he shall not be required to examine the liabilities in respect of such lower category.

18.

1. (1) After examining the claims with reference to the priority set out in the Second Schedule, the Commissioner shall fix a certain date on or before which every claimant shall file the proof of his claim or be excluded from the benefit of the disbursement made by the Commissioner.
2. (2) Not less than fourteen day's notice of the date so fixed shall be given by advertisement in one issue of the daily newspaper in the English language and one issue of the daily newspaper in the regional language as the Commissioner may consider suitable, and every such notice shall call upon the claimant to file the proof of his claim with the Commissioner within the time specified in the advertisement.
3. (3) Every claimant who fails to file the proof of his claim within the time specified by the Commissioner shall be excluded from the disbursement made by the Commissioner.
4. (4) The Commissioner shall, after such investigation as may, in his opinion, be necessary and after giving the owner of the specified textile undertaking an opportunity of refuting the claim and after giving the claimants a reasonable opportunity of being heard, in writing, admit or reject the claim in whole or in part.
5. (5) The Commissioner shall have the power to regulate his own procedure in all matters arising out of the discharge of his functions including the place or places at which he may hold his sittings and shall, for the purpose of making any investigation under this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 while trying a suit, in respect of the following matters, namely:,
   • (a) the summoning and enforcing the attendance of any witness and examining him on oath;
   • (b) the discovery and production of any document or other material object producible as evidence;
   • (c) the reception of evidence on affidavits; and
   • (d) the issuing of any commission for the examination of witnesses.
6. (6) An investigation before the Commissioner shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Penal Code and the Commissioner shall be deemed to be a Civil Court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.
7. (7) A claimant who is dissatisfied with the decision of the Commissioner may prefer an appeal against the decision to the principal civil court of original jurisdiction within the local limits of whose jurisdiction the specified textile undertaking is situated: Provided that where a person who is a judge of the High Court is appointed to be the Commissioner, such appeal shall lie to the High Court and it shall be heard and disposed of by not less than two other Judges of the High Court.

19. After admitting a claim under this Act, the amount due in respect of such claim shall be credited by the Commissioner to the relevant fund or be paid to the person or persons to whom such sums are due and on such credit or payment the liability of the owner in respect of such claim shall stand discharged.

20.

1. (1) If out of the monies paid to him in relation to the specifice textile undertaking, there is a balance left after meeting the liabilities as specified in the Second Schedule, the Commissioner shall disburse such balance to the owner of such specified textile undertaking.
2. (2) Before making any payment to the owner of the specified textile undertaking under sub-section (1), the Commissioner shall satisfy himself as to the right of such person to receive the whole or any part of such amount and in the event of there being a doubt or dispute as to the right of the person to receive the whole or any part of the amount referred to in section 7, the Commissioner shall refer the matter to the Court, and make the disbursement in accordance with the decision of the Court.
3. (3) For the removal of doubt, it is hereby declared that the entries in column
4. (3) of the First Schedule shall not be deemed to be conclusive as to the right, title and interest of any person in relation to the specified textile undertaking specified in corresponding entry in column
5. (2) of the said Schedule and evidence shall be admissible to establish the right, title and interest of any person in relation to such textile undertaking.
6. (4) Where any machinery, equipment or other property in the specified textile undertaking has vested in the Corporation, but such machinery equipment or other property does not belong to the owner of such textile undertaking, the amount specified in column
7. (4) of the First Schedule against such textile undertaking shall, on a reference made to the Court by the Commissioner, be apportioned by the Court between the owner of such textile undertaking and the owner of such machinery, equipment or other property having due regard to the value of such machinery, equipment or other property on the appointed day. Explanation., In this section "Court" in relation to a textile undertaking means the principal civil court of original jurisdiction within the local limits of whose jurisdiction the textile undertaking is situated.

21. Any money paid to the Commissioner which remains undisbursed or unclaimed for a period of three years from the last day on which the disbursement was made, shall be transferred by the Commissioner to the general revenue account of the State Government, but a claim to any money so transferred may be preferred to the State Government by the person entitled to such payment and shall be dealt with as if such transfer has not been made, the order, if any, for payment of the claim being treated as an order for the refund of revenue.