Statutory suspension of liabilities prevails over inconsistent notification conditions, preserving relief undertaking protection against winding-up proceedings.

A condition in a notification issued under section 4 of the Tamil Nadu Relief Undertakings (Special Provisions) Act, 1969 could not be enforced so as to negate the statutory suspension of contracts, agreements and liabilities granted to the relief undertaking. The court held that a creditor-wise instalment arrangement, dependent on third-party consent, was inconsistent with the main operative protection and could not override it. The substantive suspension therefore prevailed, the company retained section 4 protection, and winding-up proceedings were not maintainable during the currency of the notifications.

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Issues: Whether the condition in the notification under section 4 of the Tamil Nadu Relief Undertakings (Special Provisions) Act, 1969 requiring a written arrangement with creditors could deprive the relief undertaking of the statutory protection of suspension of liabilities and thereby permit winding-up proceedings to continue.

Analysis: The notification issued under section 4 reproduced the statutory language by directing suspension of contracts, agreements and liabilities in relation to the relief undertaking. The added proviso requiring creditor-wise instalment arrangements introduced a condition that was inconsistent with the main operative part of the notification, because a total suspension of liabilities cannot coexist with a requirement that the same frozen liabilities be paid through mutually agreed instalments. A statutory power exercised by notification cannot be made dependent on the consent or volition of third parties in a manner that destroys the very protection the statute authorises. Where the proviso conflicts with the substantive grant of protection, the substantive part prevails.

Conclusion: The condition could not defeat the statutory protection, and the appellant-company remained entitled to the benefit of section 4; the winding-up proceedings were, therefore, not maintainable during the currency of the notifications.

Ratio Decidendi: A condition appended to a statutory notification cannot be enforced so as to nullify the substantive protection expressly granted by the notification under the enabling provision, especially where compliance is left to the discretion of third parties and the condition is inconsistent with the main operative direction.

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