Chapter VI COMMISSIONERS OF PAYMENTS

(1) For the purpose of disbursing the amounts payable to the owner of each sick textile undertaking, the State Government shall, by notification in the Gazette.- (a) appoint such persons as they may think fit to be commissioners of Payments ; and (b) specify the sick textile undertaking or sick textile undertakings in respect of which each Commissioner of Payments shall exercise the powers conferred, and perform the duties imposed, on him by under this Act. (2) The State Government may appoint such other persons as they may think fit to assist the Commissioner and thereupon the Commissioner may authorise one or more of such persons also to exercise all or any of the powers exercisable by him under this Act and different persons may be authorised to exercise different powers. (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) The salaries and allowances of the Commissioners shall be defrayed out of the Consolidated Fund of the State of Kerala.

(1) The State Government shall, within thirty days from the specified date, pay in cash to the Commissioner, for payment to the owner of a sick textile undertaking, an amount equal to the amount specified against the sick textile undertaking in the First Schedule and shall also pay to the Commissioner such sums as may be due to the owner of a sick textile undertaking under sub-section (2) of section 8 and section 9. (2) A separate account shall be opened by the State Government in favour of the Commissioner and every amount paid under this Act to the Commissioner shall be deposited by him in that account and thereafter such account shall be operated by the Commissioner. (3) Separate records shall be maintained by the Commissioner in respect of each sick textile undertaking in relation to which payments have been made to him under this Act. (4) Interest accruing on the amounts standing to the credit of the account referred to in sub section (2) shall enure to the benefit of the owners of the sick textile undertakings.

Every person having a claim against the owner of a sick textile undertaking shall prefer such claim before the Commissioner within ninety 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 ninety days may entertain the claim within a further period of thirty days but not thereafter.

The claims arising out of the matters specified in the Second Schedule shall have priorities in accordance with the following principles, namely :-- (a) Category I will have precedence over all other categories and Category II will have a precedence over category III and so on; (b) The claims specified in each of the categories, except Category V, 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 ; (c) The liabilities specified in Category V shall be discharged 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 (d) The question of payment of a liability with regard to a matter specified in lower category shall arise only if a surplus is left after meeting all the liabilities specified in the immediately higher category.

(1) On receipt of the claims under section 18, 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) 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.

(1) After examining the claim 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) Not less than fourteen days’ notice of the date so fixed shall be given by advertisement in one issue of a daily newspaper in the English Language and one issue of a 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) Every claimant who fails to file the proof of his claim within the time specified by the Commissioner shall be excluded from the disbursements made by the Commissioner. (4) The Commissioner shall, after such investigation as may, in his opinion, be necessary and after giving the owner of the sick 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) 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 will 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 (Central Act 5 of 1908) while trying a suit, in respect of the following matters, namely:- (a) Summoning and enforcing the attendance of any person and examining him on oath; (b) discovery and production of any document or other material object producible as evidence ; (c) reception of evidence on affidavits ; (d) issue of commissions for the examination of witnesses Any investigation before the commissioner shall be deemed to be a Judicial proceeding within the meaning of section 193 and 228 of the Indian Penal Code (Central Act 45 of 1860), and the Commissioner shall be deemed to be a civil court for the purpose of section 195 and Chapter XXVI of the Code of Criminal Procedure 1973 (Central Act 2 of 1974). 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 sick textile undertaking is situated.

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.

(1) If out of the moneys paid to him in relation to a sick 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 sick textile undertaking. (2) Before making any payment to the owner of any sick 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 whole or any part of the amount referred to in section 8, the Commissioner shall refer the matter to the Court and make the disbursement in accordance with the decision of the Court. (3) For the removal of doubts, it is hereby declared that the entries in column (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 any sick textile undertaking specified in the corresponding entries in column (2) of the said Schedule, and evidence shall be admissible to establish the right, title and interest of any person in relation to such sick textile undertaking. (4) Where any machinery, equipment or other property in a sick textile undertaking has vested in the State Textile Corporation but such machinery, equipment or other property does not belong to the owner of such sick textile undertaking, the amount specified in column (4) of the First Schedule against such sick textile undertaking shall, on a reference made to it by the Commissioner, be appointed by the court between the owner of such sick 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 sick textile undertaking, means the principal civil court of original jurisdiction within the local limits of whose jurisdiction the sick textile undertaking is situated.

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 and had not been made, the order, if any, for payment of the claim being treated as an order for the refund of revenue.