Section 18 in The Gujarat Sick Textile Undertakings (Nationalisation) Act, 1986
18. Priority of claims.
- 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 and so on;(b)the claims specified in each category except item (i) of Category II relating to the Industrial Development Bank of India,. The Industrial Finance Corporation of India and any bank 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 item (i) of Category II relating to the Industrial Development Bank of India, the Industrial Finance Corporation of India and any bank shall be discharged in the manner agreed to by the State Government of one part with the banks and institutions of other part 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(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.
