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Section 14

The Anglo-French Textiles Limited (Acquisition and Transfer Oftextile Undertaking) Act, 1986Union territory Act of Puducherry · Act 7 of 1986

(1) The Corporation shall be entitled to receive upto the specified date, to the exclusion of all other persons, any money due to the textile undertaking, realised after the appointed day, notwithstanding that the realisation pertain to a period prior to the appointed day.

(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 the textile undertaking.

Claims to be made to the Commissioner

15. Every person having a claim against the owner of the 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.

Priority of claims

16. 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 shall have precedence over all other categories and Category-II shall have precedence over Category-III;

(b) the claim specified in each category except Category-II 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-II shall be discharged subject to the priorities specified in this section, in accordance with the terms of the secured loans and the priority, inter se, of such loans; and 248

(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.

Examination of claims

Where this provision sits

ActThe Anglo-French Textiles Limited (Acquisition and Transfer Oftextile Undertaking) Act, 1986
Section14
JurisdictionUnion territory of Puducherry
StatusIn force as published by the source

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