STATE BANK OF INDORE vs COMMNR.OF PAYMENTS — C.A. No. 2873/1998

Summary: State Bank of Indore v. Commissioner of Payments (C.A. 2873/1998) The Supreme Court dismissed State Bank of Indore's appeal, holding that interest on bank loans is not payable in priority under the Sick Textile Undertakings (Nationalisation) Act, 1974. The Court ruled that while "liability" includes interest, the Act's Second Schedule specifies priority payment only for loan principals, not accrued interest. The Court upheld the High Court's judgment allowing interest only until March 31, 1974, and rejected the bank's claim for interest accrued thereafter. This case analysis is maintained by casestatus.in based on publicly available court records.