NATIONAL TEXTILE CORPN. (DR & P) LTD. vs BANK OF RAJASTHAN .

The Supreme Court upheld the provisions of the Sick Textile Undertaking Nationalisation Act, 1974, specifically Sections 3, 4, and 5, affirming that all rights and liabilities of the owner of a sick textile undertaking vested in the Central Government and subsequently in the National Textile Corporation. The Court ruled that liabilities incurred prior to the appointed date (1.4.1974) remain with the owner, while liabilities arising thereafter are enforceable against the owner, not the Corporation. The appeal was dismissed, affirming the lower court's decision regarding interest calculations post-1.4.1974.