Section 16
Priority of claims.The claims made under section 15 shall have priorities in accordance with the following principles, namely:(a) Category I shall have precedence over all other categories and Category II shall have precedence over category-III and so on; (b) the claims specified in each of the categories shall rank equally and be paid in full, but if the amount is insufficient to meet such claims in full, they shall abate in equal proportions and be paid accordingly; and (c) the question of discharging any liability with regard to a matter specified in a lower category shall arise only if surplus is left after meeting all the liabilities specified in the immediately higher category. 17. Examination of claims. -(1) On receipt of the claims made under section 15, the Commissioner shall arrange the claims in the order of priorities specified in Schedule II and examine the same in accordance with such order of priorities. (2) If, on examination of the claims, the Commissioner is of opinion that the amount paid to him under this Act is not sufficient to meet liabilities specified in any lower category he shall not be required to examine the claims in respect of such category. 18. Admission or rejection of claims.- (1) After examining the claims with reference to the priorities specified in Schedule II, the Commissioner shall fix a certain date on or before which every claimant shall file the proof of his claim. (2) Not less than fourteen days notice of the date so fixed shall be given by advertisement in one issue of a daily newspaper in the English language having wide circulation in the country and one issue of a daily newspaper in the Kannada language, having wide circulation in the State and every such notice shall call upon the claimant to file the proof of his claim with the Commissioner within the time specified in the advertisement. (3) Every claimant, who fails to file the proof of his claim within the time specified by the Commissioner shall be excluded from the disbursement made by the Commissioner. (4) The Commissioner shall after such investigation as may, in his opinion, be necessary and after giving the claimant a reasonable opportunity of being heard, determine the nature and extent of such claim and by order in writing admit or reject the claim in whole or in part. The Commissioner shall also decide any dispute as to the person or persons who are entitled to the amount and any dispute as to who are the legal representatives of any deceased claimant. (5) The Commissioner shall have the power to regulate his own procedure in all matters arising out of the discharge of his functions, and shall, for the purpose of making an investigation under this Act, have the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 while trying a suit, in respect of the following matters, namely:-
16. Priority of claims.The claims made under section 15 shall have priorities in accordance with the following principles, namely:(a) Category I shall have precedence over all other categories and Category II shall have precedence over category-III and so on; (b) the claims specified in each of the categories shall rank equally and be paid in full, but if the amount is insufficient to meet such claims in full, they shall abate in equal proportions and be paid accordingly; and (c) the question of discharging any liability with regard to a matter specified in a lower category shall arise only if surplus is left after meeting all the liabilities specified in the immediately higher category. 17. Examination of claims. -(1) On receipt of the claims made under section 15, the Commissioner shall arrange the claims in the order of priorities specified in Schedule II and examine the same in accordance with such order of priorities. (2) If, on examination of the claims, the Commissioner is of opinion that the amount paid to him under this Act is not sufficient to meet liabilities specified in any lower category he shall not be required to examine the claims in respect of such category. 18. Admission or rejection of claims.- (1) After examining the claims with reference to the priorities specified in Schedule II, the Commissioner shall fix a certain date on or before which every claimant shall file the proof of his claim. (2) Not less than fourteen days notice of the date so fixed shall be given by advertisement in one issue of a daily newspaper in the English language having wide circulation in the country and one issue of a daily newspaper in the Kannada language, having wide circulation in the State and every such notice shall call upon the claimant to file the proof of his claim with the Commissioner within the time specified in the advertisement. (3) Every claimant, who fails to file the proof of his claim within the time specified by the Commissioner shall be excluded from the disbursement made by the Commissioner. (4) The Commissioner shall after such investigation as may, in his opinion, be necessary and after giving the claimant a reasonable opportunity of being heard, determine the nature and extent of such claim and by order in writing admit or reject the claim in whole or in part. The Commissioner shall also decide any dispute as to the person or persons who are entitled to the amount and any dispute as to who are the legal representatives of any deceased claimant. (5) The Commissioner shall have the power to regulate his own procedure in all matters arising out of the discharge of his functions, and shall, for the purpose of making an investigation under this Act, have the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 while trying a suit, in respect of the following matters, namely:-
(a) summoning and enforcing the attendance of any witness and examining him on oath;
(b) the discovery and production of any document;
(c) the reception of evidence on affidavits;
(d) the issuing of any commission for the examination of witness.
(6) Any investigation before the Commissioner shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Penal Code
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and the Commissioner shall be deemed to be a Civil Court for the purpose of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973. (7) A claimant, who is dissatisfied with the decision of the Commissioner may prefer an appeal against the decision to the District Court within the local limits of whose jurisdiction the Estate is situate. 19. Disbursement of the amount by the Commissioner to the claimants.After admitting a claim under this Act the amount due in respect of such claim shall be paid by the Commissioner to the person or persons to whom such amount is due and on such payment, the liability in relation to the Estate in respect of such claims shall stand discharged. 1 [19A. Disbursement of amount to the owners, transferees and other interested persons.- (1) If out of the amount paid to him in relation to the estate, there is a balance left after meeting the liabilities specified in Schedule-II, the Commissioner shall disburse such balance to the owners, transferees and other interested persons. (2) Before making any payment to the owners, trasnferees and other interested persons in proportion to their interest in the Estate, the Commissioner shall satisfy himself as to the right of such owners, transferees and other interested persons to receive the whole or any part of such amount and in the event of thre being a doubt or dispute as to the right of such owner, transferee or other interested persons to receive the whole or any part of the amount referred to in section 7 and 8, including appointment of the amount among them, the Commissioner shal refer the matter to the Court and make disbursement in accordance with the decision of the Court. (3) The court shall decide the appoitment of amount among the owners, trransferees and other interested persons in relation to the estate having due regard to the value on the appointed day, of the property forming part of the estate. (4) Notwithstanding anything contained in this Act evidence shall be admissible to establish the court right, title and interest of the owners, transferees or other interested persons in relation to the estate.
Explanation: In this section 'Court' in relation to the estate means the principal court of original jurisdiction within the local limits of whose jurisidiction the estate is situated.] 1