NATIONAL TEXTILE CORPN.(GUJ) LTD. vs STATE BANK OF INDIA .

The Supreme Court examined the Sick Textile Undertakings (Nationalization) Act, 1974, specifically Sections 2(1), 2(h), and 5, determining the implications of nationalization on ownership and liabilities of sick textile undertakings. The Court held that the right, title, and interest of the textile mills vested in the Central Government, and subsequently in the National Textile Corporation, while liabilities incurred before the appointed day remain with the original owner. The appeals were decided in favor of the creditors' claims based on the statutory provisions outlined in the Act.