National Textile Corporation (Guj.) ... vs State Bank Of India & Ors

The Supreme Court ruled on the interpretation of the Sick Textile Undertakings (Nationalization) Act, 1974, particularly Sections 2(1), 2(h), and 3, clarifying that the right, title, and interest of sick textile undertakings vest in the Central Government, and subsequently in the National Textile Corporation. The Court held that claims for compensation must be categorized into pre-takeover and post-takeover periods, with specific priorities for disbursement as outlined in the Second Schedule. The appeals were dismissed, affirming the statutory framework governing the management and liabilities of sick textile undertakings.