STATE OF PUNJAB vs OKARA GRAIN BUYERS SYNDICATE LTD.AND ORS.(AND CONNECTED AP

The Supreme Court held that claims made by displaced creditors against the State of Punjab under Section 13 of the Displaced Persons’ (Debts Adjustment) Act, 1951, are maintainable as the debts owed by the State are included within the Act's scope. The Court established that the State can be considered a 'person' under the Act, as the intention of the legislature to bind the State is evident to ensure the Act's beneficent purpose is fulfilled. The ruling emphasized that the State's obligations must be recognized to maintain equity and justice in the adjustment of debts under the Act.