COMMISSIONER OF PAYMENTSCentral

Section 20 of The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986

Examination of claims.

(1)On receipt of the claims made under section 18, the Commissioner shall arrange the claims in the order of priorities specified in the Schedule and examine the same in accordance with such order.
(2)If on examination of the claims against the Company, the Commissioner is of the opinion that the amounts paid to him under this Act for payment to such Company are not sufficient to meet the liabilities specified in any lower category, he shall not be required to examine any claim in respect of such lower category.

Summary

The Commissioner takes all the claims submitted under the rules of Section 18.
The Commissioner then arranges these claims into an ordered list based on the priorities set out in the Schedule.
The claims are examined in this exact priority order, starting from the top.
If the Commissioner sees that the total money provided by the government will run out before reaching lower categories, they do not even have to look at or examine the claims in those lower categories.

Practical examples

1The Commissioner receives a massive stack of claims. Before reading the details of each one, they sort the stack into Category I, Category II, and so on, so they can process the most important ones first.

2After examining Category I and Category II claims, the Commissioner calculates that these two categories will completely empty the funds. They immediately stop working on the files for Category III and lower, saving time since there is no money left to give them anyway.

FAQ

1. In what order does the Commissioner review the claims?

The Commissioner arranges and examines the claims in the order of priorities specified in the Schedule.

2. Will the Commissioner definitely read and examine my claim?

Not necessarily. If your claim is in a lower category and the Commissioner determines the money will run out before reaching your category, they are not required to examine your claim at all.

Test yourself

Q1.Under Section 20 of The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986, how must the Commissioner arrange the claims upon receipt?

Q2.Under Section 20 of The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986, when is the Commissioner NOT required to examine a claim?

Q3.Under Section 20 of The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986, the examination process applies to claims made under which previous provision?

Q4.Under Section 20 and Section 18 of The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986, if a claimant submits a claim ninety days after the specified date without any sufficient cause, what happens during the Section 20 examination?

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