Tables not created in proper schema

Hello All,
I am trying to create databse with script.
I run this script from root prompt with command

$ su - postgres -c 'path to script.sql'

In the script I follow following steps

1) create user xyz
2) create database xyz -O xyz
3) create schema xyz
4) {PG_PATH}/psql -d xyz -U xyz -f /usr/local/pgsql/QS/QS_100_2_Create_Table.sql -q -1

But still the tables are created in the public schema and not in xyz schema

Postgresql.conf entry:
serach path =' "$user",public'

tried with setting :
search path = ' xyz,"$user",public'
Same result

OR
search path = ' "$user",xyz,public'
Same result

OR
search path = ' "$user",xyz'
Error:no schema has been selected to create in

Please suggest me the corrective action.

Thanks In advance

Ashish...