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2015 (7) TMI 1390 - GUJARAT HIGH COURTPriority claimed by the DICGC over the depositors, creditors (secured and unsecured creditors), workmen and government dues, with respect to the amount paid by them to the concerned depositors paid under Regulations 1961 - Regulation 22 of the Deposit Insurance and Credit Guarantee Corporation General Regulations, 1961 - HELD THAT:- The concerned depositor/s in the present case, petitioner of Special Civil Application No.7617 of 2009 (Letters Patent Appeal No.2458 of 2009), Shri Ambaji Mata Devasthan Trust, in whose favour there is a decree passed by the competent Court is/are concerned, they can be said to be the unsecured creditors only and, even if they are permitted to proceed further with the execution proceedings to execute their respective decree/awards in their favour, in that case also, the concerned liquidator (who can be said to be a debtor and against whom the decree/award is passed) can be permitted to make the payment and satisfaction of the decree/award only after the official liquidator makes necessary provisions for the expenses in relation to the liquidation proceedings and for declaration of the dividend and thereafter makes payment to the DICGC as observed herein above and only thereafter, if any excess amount is there with the official liquidator of the concerned Bank in liquidation, the same can be directed to be paid to the concerned decree holder/in whose favour the award is passed. However, that too subject to the priority as provided under the provisions of the Gujarat Cooperative Societies Act. The sum and substance of the above shall be that the DICGC shall be entitled to the first preference over the payment/amount available with the concerned official liquidator of the concerned bank in liquidation. However, after making necessary provisions by the official liquidator, for the expenses in relation to the liquidation proceedings and for declaration of dividend. The impugned common judgment and order passed by the learned Single Judge passed in Special Civil Application No.4260 of 2009, Special Civil Application No.7617 of 2009 and Special Civil Application No.6978 of 2009 are hereby quashed and set aside - the Letters Patent Appeals are allowed to the aforesaid extent by directing the concerned official liquidator of the concerned Bank in liquidation to make the payment first to DICGC i.e. the amount which is paid by DICGC to the concerned depositor/s to the extent of ₹ 1 Lac each, however after making necessary provisions for the expenses in relation to the liquidation proceedings and for declaration of dividend. Appeal disposed off.
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