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2015 (7) TMI 1389 - SC - Indian LawsSeeking settlement of statutory claims of the depositors - duty of the Corporation to disburse the amount guaranteed among the depositors or not - Winding up proceedings - HELD THAT:- The object with which the Act has been enacted has been stated hereinabove in a nutshell. The object was to insure the depositors so that they may not have to stand in a queue before the Official Liquidator for every paisa deposited by them with the concerned bank. As on today, as per the provisions of Section 16(1) of the Act, a sum of ₹ 1 lakh is being insured or guaranteed in respect of each depositor. So a depositor is safe and he has not to wash his hands off his deposit if the amount deposited by him is less than ₹ 1 lakh. The Official Liquidator, as per the provisions of the Act, has to give details about the depositors and the amount deposited by them in a prescribed form within three months from the date on which the liquidation order is passed or from the day on which he takes charge, whichever is later and within two months from the date on which the details are submitted to the Corporation, the Corporation has to make payment to the above extent either to the depositors directly or to them through the Official Liquidator. As per the above-referred Scheme, each depositor, including each original petitioner, must have received ₹ 1 lakh from the Official Liquidator. Initially, upon the bank being ordered to be wound-up, the original petitioners and other depositors had a right to recover ₹ 1 lakh or the amount deposited, whichever was less, from the Official Liquidator and the said amount must had been paid to them when the petitions were filed. Regulation 22 also provides that the Official Liquidator, after making necessary provision for the expenses in relation to the liquidation proceedings and for declaration of dividend, as prescribed in the Regulations, has to make payment to the Corporation - the High Court should not have given the direction which, if complied with, would run contrary to the statutory provisions incorporated in the Act. Even if one looks at the entire issue from different point of view, one would believe that all the depositors have by and large equal right. If the amount deposited is less than ₹ 1 lakh, each depositor gets the amount in full, but if the deposit is exceeding ₹ 1 lakh, then only the amount which is in excess of ₹ 1 lakh may not be given to the depositor, unless the bank in liquidation is having sufficient funds which can be given to all on pro-rata basis after providing for expenditure in the liquidation proceedings and after repaying the amount to the Corporation as per the provisions of the Act. The Act in a way guarantees repayment of ₹ 1 lakh to each depositor. The High Court or any other authority has no power to direct payment in excess of ₹ 1 lakh by ignoring statutory provisions of the Act and the Regulations made thereunder. The High Court had exceeded its authority while giving a direction to the Official Liquidator, which is not in consonance with the statutory provisions - appeal allowed.
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