LexThe Common Wealth Trust, Kozhikkode(Acquisition and Transfer of Undertaking)Act, 2012(1 of 2018)
Kerala · state statute
Open in Lexace · Ask the AI about this actRegn. No. KERBIL/2012/45073
3e)( (n!3 dated 5-9-2012 with RNI
)vernment1of Kerala Reg. No. KL/TV(N)/634/2015-17
2018
CcO( W(TUOO
KERALA GAZETTE
mcn)3w3c6mo
EXTRAORDINARY
W1o3a1o3(D)1 1uS(ITh
II. PUBLISHED BY AUTHORITY
MOOSO 7
)
Vol. V11j Thiruvananthapuram,
Monday
2018 6flJl0fl01 19
19th February 2018
1193
7th Kumbharn I 193
1939 00eOft 30
30th Magha 1939
(Thfli(
No. J
'
405
GOVERNMENT OF KERALA
Law (Legislation-C) Department
NOTIFICATION
4
No. 1 803/Leg.C3/20 13/Law. 19th February, 2018•
Dated, Thiruvananthapuranz, 7th Kunibharn, 1193
301h Magha, 1939.
4
The following Act of the Kerala State Legislature is hereby published
for geera1 information. The Bill as passed by the Legislative Assembly
received the assent of the President on the 1st day of February, 2018.
By order of the Governor,
B. (1 HARINDRANATH,
Law Secreta,y.
PRINTED AND PLJBLISIIED BY THE SUPERINTENDENT.OF GOVERNMENT PRESSES
AT THE GOVERNMENT CENTRAL PRESS. IHIRUVANANTIIAPURAM. 2011.
2
ACT 1 OF 2018
THE COMMONWEALTH TRUST, KOZHIKODE (ACQUISITION
AND TRANSFER OF UNDERTAKING) ACT, 2012.
An Act to provide for the acquisition, and transfer of the Handloom
Weaving Factory,, Mananchira, Kozhikode, a unit of the .
. commonwealth Trust ('India) Limited and the right, title and interest
of the owners in respect of the said, undertaking with a view to
reorganising and rehabiliiating the undertaking and to establish
an industrial museum and production centre under the Kerala
State Industrial Development Corporation and fbr matters.
connected therewith or incidenial thereto.
Preanthle.—WHEIuAs, it is expedient to provide for the acquisition and
transfer of the Handloom Weaving Factory, Mananchira, Kozhikode, a unit
of Commonwealth Trust (India) Limited and the right, title and interest of
the owners in respect of the said undertaking with a view to reorganising
and rehabilitating the undertaking and to establish an industrial museum and
production centre under the Kerala State Industrial Development
Corporation and for matters connected therewith or incidental thereto;
BE' it enacted in the Sixty-third year 'of the Republic of India as
follows:—
CHAPTER 1
PRELIMINARY
1. Short title and cornnzencenzent.—(l) This Act may be called the
Commonwealth Trust, Kozhikode (Acquisition and Transfer of
Undertaking) Act, 2012.
(2) It shall come into force at once.
2 Definisions.—(l) In this Act, unless the context otherwise
requires,— . . . .
(a) "Commissioner" means the Commissioner of payments
appointed under section 17; . .
) 'Govermnent" means the Government of Kerala,
"owner" méansthe ersoii or association of persons who
or which was immediately before the date of commencement of this Act
the proprietor or lessee or occupier of the undertaking or any part thereof
or a perso1 or persons who purchased land from the undertaking and
includes the subsequent transferees of such land;
"prescribed" means prescribed by rules made under
this Act;
S
"State Industrial Development Corporation" means the
Kerala State Industrial Development Corporation formed and registered
under th Companies Act, 1956 (Central Act I of 1956);
(f) "textile company" means the company specified in
column 1) of the First Schedule as owning the undertaking specified in
thecorresponding entry in column (2) of that Schedu1e
/ (g) "undertaking" means the textile undertaking specified in
the First Schedule;
/ (h) "unused land" means the properties sold by the
undertaking or any person or authority on its behalf which are in the
possession and ownership of the transferees but remain unused as on the
date of èommencement of this Act and more specifically described in the
' ThirdfSchedule to this Act;
/ (2) Words and expressions• used but not defined in this Act and
' defined in the Industries (Development and Regulation) Act, 1951 (Central
Act 65 of 1951), shall have the meanings respectively assigned to them in
that tAct.
or, I
(3) Words and expressions used but. not defined either in this Act
the Industries (Devçlopment and Regulation) Act, 1951 (Central Act
65 jf 1950, and defined in the Companies Act, 1956 (Central Act I of
1956), shall have the meanings respectively assigned to them in the
Conpanies Act, 1956 (Central Act 1 of 1 959 .
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CHAPTER II
ACQUISITION OF THE RIGHTS OF OWNER OF THE
UNDERTAKING
Acquisition of rights of owner in respect of the undertaking.—
(1) The right, title and interest of the owner in relition to the undertaking
and the unused land shall, by virtue of this Act, stand transferred to, and
shall vest absolutely in, the Government.
(2) The said undertaking and the unused land which stand vested
in the Government by virtue of sub-section (1) shall, immediately after it v
has so vested, stand transferred to, and vest in, the State Industrial
Development Corporation.
General effect of vesting.—(l) The undertaking referred to in
section 3 shall be deemed to. include all assets, rights including lease-hold
rights, powers, authorities and privileges and all property, movable and
immovable, including lands, buildings, workshops, stores, instruments,
machinery and equipment, cash balances, cash on hand, reserve funds,
investments and book debts and all other rights and interests in, or arising
out of, such property as were immediately before the date of
commencement of this Act in the possession, power or control of the
owner and all books of account, registers and all other documents of
whatever nature relating thereto and shall also be deemed to include the
liabilities and obligations specified in sub-section (2) of section 5,
All property as aforesaid which have vested in the
Government under sub-section (1) of section 3 shall, by force of such
vesting, be freed and discharged from any trust, obligation, mortgage,
charge, lien and all other encumbrances affecting it, and any attachment,
injunction or decree or order of any cotirt restricting the use of such.
property in any manner shall be deemed to have been withdrawn.
Where any licence or other instrument in relation to the said
undertaking had been granted at any 4time before the date of
commencement of this Act to an owner by the Central Government or a
State Government or any other authority, the State Industrial Development
Corporation shall, on and from such date be deemed to be substituted in
such licejce or other instrument in place of the owner referred to therein
as if such licence or other , instrument had been granted to it and shall
hold suh licence or the said undertaking specified in such other
in'strumbnt for the remainder of the period for which the owner would
have hd such licence or the undertaking under such other instrument.
'(4) Every mortgagee of any'property which has vested under this
Act in [the Government and every person holding any charge, lien or other
interest in or, in relation to any such property shall give, within such time
.' and in such manner as may be prescribed, an intimation to the
Commissioner, of such mortgage, charge, lien or other interest.,
/ (5) For the removal of doubts, it is hereby declared that the
mortagee of any property referred to in sub-section (2) or any other;
persn holding any charge, lien or other interest in, or in relation to, any
such property shall be entitled to claim, in accordance with his rights and
inteest, pa'ment of the mortgage money or other dues, in whole or in
part, out' of the amount specified in relation to such property, in. the First
Schedule, but no such 'mortgage, charge, lien or other interest shall be
enf?orceable against any property which has vested in the Government.
/ (6) 'if, any suit,' appeal or other proceeding of whatever nature in
relation to any matter. specified in sub-section (2) of section 5 in. respect
of the said undertaking, instituted or preferred by or against the textile
csmpany is pending as on' the date of commencement of this Act, the,
s,kme shall not abate, be discontinued or be, in any way, prejudicially
4tected by reason of transfer of the undertaking or of anything contained
in this Act but the suit, appeal or other proceedings may be continued,
,rosecuted and enforced by the State Industrial Development Corporation.
'5. Owner to be liable for certain prior liabilities.—(l) Every
liability, other than the liability specified in sub-section (2), of the owner in
respect of any period prior to the date of commencement of this Act shall
be the liability of such owner and shall be enforceable against him and not
against the Government or the Kerala State Industrial Development
Corporation. . .
'.6
(2) Any liability arising in respect of—
loans advanced by the Central Government or the State
Government to the undertaking (together with interest due thereon);
wages, salaries and other dues of employees of the said
undertaking, in respect of any period after the undertaking has been taken
over by the Government, shall be the liability of the Government and shall . r
be discharged, for and on behalf of the Government, by the State
Industrial Development Corporation as and when repayment of such loans
or amounts become due or as and when such wages, salaries or other
dues become due and payable. . . .'
(3) For the removal of doubts, it is hereby declared that,—
save as otherwise expressly provided in this section or in
any other secton of this Act, no liability, other than the liability specified in
sub-section (2), in relation to the undertaking or the property sold in,
respect of any period prior to the date of commencement of this Act, shall•
be enforceable against the Government or the Kerala State Industrial
Development Corporation;
no award, decree or order of any court, tribunal or other
authority in relation to the undertaking or the' properties sold, which are
passed after the date of commencement of . this Act in respect of any
matter, claim or dispute, in relation to any matter not referred to in
sub-section (2) which arose before that day, shall be enforceable against
the Government or the State Industrial Development Corporation;
no liability of the undertaking or any owner thereof for
the contravention, before the company has been closed, of any provision
of,a law' for the time being in force, shall be enforceable against the
Government or the State Industrial Development Corporation.
6. State Industrial Development Corparation to form subsidiary
corporations.—(l) The State Industrial Development Corporation may, if
it consider it necesary to do, so, form subsidiary corporations 'under the
Companies Act, 1956 (Central Act I of 1956), and register them under
that Act. .
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State Industrial 'Development CorpoMtion may, by order in
.wtiting, r the undertaking or part, thereof to a subsidiary corporation
or other y of the Government and any such transfer shall be subject
to such and conditions as may, be specified in the order.
(3) The subsidiary corporation or other agency of the Government
shall, on and from the date of such transfer, be.deemed to be substituted
in the licence or other instrument :referred to in sub-section (3) of section 4
in place of he State Industrial Development Corporation as if such
licence or other instrument had, been granted to the subsidiary corporation
or other agency of the Government and shall hold such licence or other'
instrument i'or the remaining period for which.the State Industrial
Development Corporation would have held such licence or àther
instrument. 0 '
(4) dn transfer of the undertaking or part thereof to a subsidiary
corporation or other agency of the Government the liabilities required to be
discharged, by the State Industrial Development Corporation under
sub-section (2).of section 5 shall, in so fat as they relate to the said
undertaking or part thereof so transferred to the subsidiary corporation or
other agency' of the Government be discharged on and from the date of
such transfer by the subsidiary corporation or other agency of the
Government as and when any such liability is .required to be discharged.
(5) rave as otherwise 'expressly provided in 'this Act, references
in this Act to the State Industrial Development Corporation shall in respect
of the said undertaking or any part thereof which is transferred to a
subsidiary corporation or other agency of the Government be construed as
references to such subsidiary corporation or other agency of the
7. Shares to be issued by the State Industrial Develop,nent
Corporation for the va/tie of the assets transferred to it by
Govern,neiit.—(l) An amount equal to the value of the assets of the
undertakin4 and the properties sold which are transferred to, and vested
in,. the State. Industrial Development Corporation under sub-section (2) of
section .3 1 shall be deemed to be the contribution made by the
Governmet to the equity' capital of the State Industrial Development
r]
Corporation; and for the contribution so made, the State Industrial
Development Corporation shall issue (if necessary after amending its
memorandum and articles of association) to the Government paid-up
shares, in the equity capital, having a face value equal to the amount
specified against the undertaking in the corresponding entry in column (3)
of the First Schedule.
(2) Where any liability is assumed by the Government under
sub-section (1) of section 26 they may call upon the State Industrial
Development Corporation to issue (if necessary, after amending the
memorandum and articles of association of the Corporation) to the
Government additional paid-up shares, in its equity capital having a face
value equal to the amount of the liability assumed by the Government
under the said sub-section.
CHAPTER III
PAYMENT OF AMOUNT OR COMPENSATION
Payrnent of amount to owner of the undertaking.—(l) The
owner of the undertaking shall be given by the Government, in cash and in
the manner specified in Chapter VI for the transfer to, and vesting in, it
under sub-section (1) of section 3, of such undertaking and the right, title
and interest of the owner in relation to the undertaking, an amount equal
to the amount specified against it in the corresponding entry in column (3)
of the First Schedule. -
(2) In addition to the amount referred to in sub-section (1), there
shall be given by the Government, in. cash, to the owner of the
undertaking, simple interest at the rate of four per cent per annum on the
amount specified against such owner in the corresponding entry in
column (3) of the First Schedule for the period commencing on the date
of commencement of this Act, and ending on the date on which payment
of such amount is made by the Government to the Commissioner.
Paynzent of further amount.—(l) The textile company shall be
given by the Government for the deprivation of its management an amount
of one thousand rupees per annum for the period commencing on the
date on which the undertaking has been closed and ending on the date of
commencement of this Act.
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The amount calculated in accordance with the provisions of
sub-section (1) shall carry simple interest at the rate of four per cent per
annum for the period commencing on the date of commencement of this
Act and ending on the date on which the payment of such amount is
made by the ovemnient to the Commissioner.
The. amounts determined in relation to the undertaking in
accordance with..the provisions. of sub-seclions (1) and (2) shall be given,
by the Government to the textile company in addition to the amount
specified in the First Schedule against that company.
10. Paydzent of compensation to owners of properties sold and
vested in Go)ernment.—( 1) The owners of the properties sold and vested
in Governmei t under this Act shall be entitled for an amount by way of
compensation at the rate of the market value of the land prevalent in the
area as on the date of commencement of this Act.
The Commissioner shall be competent to fix the market
value as compensation payable. under sub-section (l) In the matter of
- fixation of ccmpensation under sub-section (1), the Commissioner shall
have all the powers of a Collector under the Land Acquisition Act;
frhe owners of the land shall be entitled' to interest at the
rate of 12% per annum on, the amount so fixed by the Coihmissioner or
in appeal, asl the case may be, from the date of commencement of this
Act till the date of paymentof the amount to.hiin:
a.
CHAPTER IV
MANAGEMENT, ETC., OF THE UNDERTAKING
11. MaiL gement. etc., of the undertaking and the land vested in
Government.—The State Industrial Development Corporation or any
person which that Corporation may, by order in writing, specify, shall be
entitled to exercise the powers of general superintendence, direction,
control and 6anagemeit of the affairs and business of the undertaking,
the right, title and intert of an owner in relation to which have vested in
that Corporation under. sub-section (2) of section 3, and do all such things
as the owner of the undertaking is authorised to exercise and do.
33/63712018lS-.
10
Duty, of persons in charge of management qf the undertaking
to deliver all assets, etc.—On the vesting of the management of the
undertaking in the State Industrial Development Corporation, all persons in
charge of the management of undertaking immediately before such vesting
shall be bound to deliver to the State Industrial Development Corporation
all assets, books of account, registers or other documents in their custody
relating to the said undertaking.
Accounts.—The State Industrial Development Corporation shall
maintain the accounts of the said undertaking in accordance with the
provisions of the Companies Act, 1956 (Central Act I of 1956).
CHAPTER V
PROVISIONS RELATING TO EMPLOYEES OF THE
UNDERTAKING
Employment of certain employees to continue.—( 1) Every person
who is a workman within the meaning of the Industrial Disputes Act, 1947
(Central Act 14 of 1947), and has been immediately before 1St February,
2009, employed in the undertaking shall become, on and from the date of
commencement of this Act, an employee of the State Industrial
Development Corporation with the same rights and privileges as to
pension, gratuity and other matters as would have been admissible to him
if the rights in relation to the undertaking had not been transferred to, and
vested in, the Government and shall continue to do so unless and until his
employment in the State Industrial Development Corporation is duly
terminated or until his remuneration, terms and conditions of employment
are duly altered by the State Industrial Development Corporation.
(2) Every person who is not a workman within the meaning of
the Industrial Disputes Act, 1947 (Central Act 14 of 1947), and who has
been, immediately before 1st February, 2009, employed in the undertaking
shall, in so far as such person is employed in connection with the
undertaking which has vested in the Government become, on and from
the date of commencement of this Act, an employee, of the State Industrial
Development Corporation and shall hold his office or service therein by -.
the same tenure, at. the same remuneration and upon the same terms and
iF
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conditions and vith the same rights and privileges as to pension and
gratuity and other natters 'as he would have held the same under the
undertaking if it had not vestedin the State 1ndutrial Development
Corporation and4hall continue to do so unless and until his employment in
the State Industrial Development Corporation is duly terminated or until his
remuneration, ter6s and conditions of employment are duly altered by the'
State 1ndustriaiIevelopment Corporation.
' (3) Notwithstanding anything contained in the Industrial Disputes
Act. 1947' (Central Act 14 of 1947), or in any other law for the time being
"
in force, the, trmnsfer of the services of any officer or other 'person
employed in tle undertaking 'to the State Industrial Development
Corporation shll not entitle such officer or other emloyee to any
compensation under this Act or any other law for the time being in force,
and no such claimhall be entertained by any court, tribunal or other
authority.
(4) Where, under the terms of any contract of service or
otherwise, no berson whose services become terminated or 'whose,
services become transferred to the State Industrial Development
Corporation' byreason of the provisions of this Act is entitled to any
arrears of salary or wages or any payment for any leave not availed of
or other paymem1lt, not being payment by way 'of gratuity or pension, for
any period prir to the 1st day of February, 2009, such person 'may.
except to the extent such liability has been taken over by the' Government
Ell
üñder section 5J enforce his claim against the owner of the undertaking
but not against the Government or the State Industrial Development
C'nrpratio'n.
15. Provident and other funds.—(l) Where the owner of the
undertaking has established a provident fund, superannuation. welfare or
other fund for tlie benefit of the persons employed in such undertaking, the.
money relatable to the employees, whose services have become
transferred by lor under this Act to thi State Industrial Development
Corporation shall, out of the money standing, on the appointed day, tO 'the
credit of such p-ovident fund, superannuation, welfare or other fund, stand
transferred to) and shall vest in, the State Industrial Development
Corporation. I '
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(2) The money which stand transferred under sub-section (1) to
the State Industrial Development Corporation shall be dealt with by that
Corporation in such manner as may be prescribed.
Transier of enpIoyee,s to Subsidiary Corporatioiz.—W/iere the
undertaking or any part thereof is transferred under this Act to a
subsidiary corporation or other agency of the Government every person
referred to in sub-section (1and sub-section (2) of section 14, shall on r
and from the date of such transfer, become an employee of the subsidiary
corporation or other agency of the Government and the provisions of
sections 14 and 15 shall apply to such employee as they apply to an
employee of the State Industrial Development Corporation as if references
in the said sections to the State Industrial Development Corporation were
references to the subsidiary corporation or other agency of the
Government.
CnAITIR VI
COMMISSIONER OF PAYMENTS
Appointment .of Commissioner of Payments.—(l) For the
purpose of disbursing the amounts payable to the owner of the undertaking
and the owners of the properties sold, the Government shall, by
notification in the Gazette, appoint a person as they may think fit to be the
Commissioner of payments.
The Government may appoint such other persons as they
may think fit to assist the Commissioner and thereupon th Commissioner
may authorise one or more of such persons also to exercise all or any of
the powers exercisable by him under this Act and different persons may
be authorised to exercise different powers.
Any person authorised by. the Commissioner to exercise any
of the powers may exercise those powers in the same manner and with
the same effect as if they have been conferred on that person directly by
this Act and not by .vay of authorisation.
The salaries and allowances of the Commissioner shall be as
may be prescribed and it shall be defrayed out of the Consolidated Fund
of the State of Kerala.
1-
I. 13
I Payment by the Govern,nent to the Coin,nissioner—( 1) The
Govei'mënt shall, within thirty days from the commencement, of this Act,
pay if,. cash, to the -Commissioner, for payment to the owner of-the
undetaking, an amount equal to the amount specified against the
undertaking in the First Schedule and shall also pay tothe Cdmmissioner
such sums as may be due to the owner' of the unde.r,taking and. the
ownrS' of the properties sold • under sub-section (2) of section 8, section 9
ahd 'ection.lO.
(2) A 'separate account shall 'be opened by the Government ,in
favo rof the Commissioner'and every amount paid under this. Act to the
'Commissioner shall be deposited by him in that account and thereafter
such account shall be'operated by the Conunissioner.
'(
'(3) Separate. recrds shall be maintained by the Commissioner in
resject of the undertaidng and the payment made to hini under this Act.
(4) !nterest accniin on the amounts standing to the credit of the
accunt referred to in sub-section '(2) shall ensure to the benefit of the
owiers of the undertaking and payment of interest to the owners of the
rooerties sold.
= .19. 'C1ains: to' be made to the Comnzissioner—Every person havIng
a 'claim against the owner of the undertakingor the properties sold 'shall
prfer such claim before the Commissioner within, thirty days from the
'date of appointment of the. Commissioner. or such extended.period, as the
Gvernnent may, by notification in the Gazette, specify:
P
Provided thatif the CommissiOner is satisfied that the claimant was
evented'by sufficient cause from preferring the claim within the said
riod he may 'entertain the claim within a further period of thirtS' days
bitt not thereafter.
20. Priority of claims.—( 1) The claims arising out of the matters
ified in 'the Second Schedule shall have priorities in accordance with
following principles, namely:— , ' ..• ,
(a) Category I will have precedence over all other
gOries and Category Ii will have precedence over Category III and
on;
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The claims specified in each of the categories, except
Category V, 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;
The liabilities specified in Category V shall be 'discharged
subject to the priorities specified in this section in'accordance with the
terms of the secured loans and the priority, inter Se, of such loans; and
The question of payment of a liability with regard to a
matter specified in a lower category shall arise only if a surplus is left
after meeting all the liabilities specified in the immediately higher category. ;
(2) The provisions of this section shall not in any way affect
payment of compensation to the owners of properties sold.
21. Examination of c/aiins.—(1) On receipt of the claims under
section 19, the Commissioner shall arrange the claims in the order of
priority specified in the Second Schedule and examine the same in
accordance with the said order.
(2) If, on examination of the claims, the Commissioner is of the
opinion that the amount paid to him under this Act is not sufficient to meet
the liabilities specified in any lower category, he shall ndt be required to
examine the liabilities in respect of such lower category.
22. Admission or rejection of the claims.--(l) After examining the
claim with reference to the priority set out in the Second Schedule, the
Commissioner shall fix a certain date on or before which every claimant
shall file the proof of his claim or be excluded from the benefit of the
disbursement made by the Commissioner.
(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 and one issue of a daily newspaper' in the regional language, as
the Commissioner may consider suitable, 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 specifid by the Commissioner shall be excluded from the
disbursement made by the Commissioner.
15
The Commissioner shall, after such investigation as may, in
hi opinion, be necessaty and after giving the owner of the undertaking an
opportunity of refitting the claim and after giving the claimant a reasonable
opportunity of being heard, in writing, admit or reject the claim in whole or
in part.
The Commissioner shall have the power to regulate his own
procedure in all matters arising out of the discharge or his functions,
including the place or places at which, he will hold his sittings and shall,'
for the purpose of making any investigation under this Act, have the same
powers as are vested in a civil cOurt under the Code of Civil Procedure,
1908 (Central Act 5 of 1908), while trying a suit, in respect of the
following matters, namely:—
j (a) summoning and enforcing the attendance of anj person
and examining him on oath;
discovery and production of any document or other
iateria1 object producible as evidence;
reception of evidence on affidavits;
issue of commissions for the examination of witnesses.
Any investigation before the Commissioner shall be deemed to
be a judicial proceeding within the meaning of sections 193 and 228 of the
Indian Penal Code (Central Act 45 of 1860); and the Commissioner shall
be deemed to be a civil court .for the purposes of section 195 and
Chapter XXVI of the Code of Criniinal Procedure,. 1973 (Central Act
2 of 1974).
Any person aggrieved by, or who is dissatisfied with the
decision of the Commissioner may,.within thirty days from the date of
receipt of the order leading to such decision, prefer an appeal against the
decision to the principal civil court of original jurisdiction within the local
limits of whose jurisdiction the undertaking is situated.
23. Dishursenicqit of money by the Commissioner to claimants.—
After admitting a claim under this Act, the amount due in respect of such
claim shall be credited by the Commissioner to the relevant fund or be
16
paid to the person or persons to whoni such sums are due and on such
credit or payment the liability of the owner in respect of such claim shall
stand discharged.
24. Disbursement (t !niOuflts to the owne ,: of the undertaking.—
(1) If out of the amount paid to him in relation to the undertaking, there is
a balance left after meeting the liabilities as specified in the Second r
Schedule, the Commissioner shall disburse such balarice to the owner of
such undertaking.
Before making any payment to the owner of the undertaking
under sub-section (1), the Commissioner shall satisfy himself as to the
right of such person to receive the whole or any part of such amount, and
in the event of there being a doubt or dispute as to the right of the
person to receive the whole or any part .of the amount referred to in
section 8, the Commissioner shall refer the matter to the court and make
the disbursement in accordance with the decision of the court.
For the removal of doubts, it is hereby declared that the
entries in column (2) of the First Schedule shall not be deemed to be
conclusive as to the right, title and interest of any person in relation to the
undertaking specified in the corresponding entries in column (1) of the said
Schedule; and evidence shall be admissible to establish the right, title and
interest of any person in relation to such undertaking.
Where any machinery, equipment or other property in the.
undertaking has vested in the State industrial Development Corporation but
such machinery, equipment or other property does not belong to the owner
of such undertaking, the amount specified in column (3) of the First
Schedule against such undertaking shall, on a reference made to it by the
Commissioner, be apportioned by the court between the owner of such.
undertaking and the owner of such machinery, equipment or other property
having due regard to the value of such machinery, equipment or other
property on the date of commencement of this Act.
Evplanatioii:—ln this section, "court", in relation to the undertaking,
means the principal civil court of original jurisdiction within the local limits
of whose jurisdiction, the undertaking is situated.
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25. Uidisbursed or u'i;claimed amounts to .be , deposited to the
generl revenue accbunt.—Any amount paid to the Commissioner which
remaihs undisbursed or unclaimed for a. period of three years from the ,
last on which the d1sbursemënt was made, shall be transferred by the
Commissioner to the general revenue account of the overnment,, but a
clai!$ to any money so transferred may be preferred to the Government
by the person entitled to such payment and shall be dealt with' as if such
tranhfer had not been'made, 'the order, 'if any, for payment of the' claim
., beidg treated as an order for the refund' of, revenue. . .
I . ' CHAPTER VII
MISCELLANEOUS
Assumption of Iiabiiity.—(1) Where any liability of the
tertaking arising out of any claim specified inategory 'I, Category, II or
:egoiy. 11'! or Category IV in:'the Second 'Schedule is' not discharged
y by the Commissioner out of the amount paid to, him, under this Act,
Commissioner shall mtimate in wntmg to the Government the extent of
liability which remains widischarged, and that liability shall' be ,assumed
the Government.
'(2) The liability, assumed by the Government under sub-section (1)
shall be discharged by payment of the amount of the liability in negotiable
bonds redeemable after the expiry of ten years and carrying simple
mterpst at the rate of seven and a half per cent per annum with effect
from the dàte of, commencement of this Act. '
Act to over-ride a/I' other enaiment..—The provisions of this
Act shall have effect notwithstanding 'anything inconsistent therewith
contained in any other law for the time being in 'force, or in any
instrument having effect by virtue of any 'law other.than this Act,or 'in'.
any ecree or order of any court, tribunal orauthority. •
contracts' to cçase to have effect unless ratified by the State
Indusfrthl Development Corporation.—(i) Bvry contract entered into
by the owner or occupier of the undertaking for any service, sale or
supply and in force ünmodiàtely before the date of cOmmencement ,of this
331637120181S-3.
Act, shall, on and from the expiry of one hundred and eighty days from
the said date cease to have effect unless such contract is, before the
expiry of that period, ratified, in writing, by the State Industrial
Development Corporation, and in ratifying such contract the State
Industrial Development Corporation, may, with the previous approval of
the Government, make such alterations or modifications therein as it may
think fit:
Provided that the State Industrial Development Corporation shall not
omit to ratiI' a contract, and shall not make any alteration or modification
in a contract unless it is satisfied that such contract is unduly onerous or
has been entered into in bad faith or is detrimental to the interests of the
undertaking.
(2) The State Industrial Development Corporation shall not omit to
rati1' a contract, and shall not make any alteration or modification therein
except after giving to the parties to the contract a reasonable opportunity
of being heard and except after recording in writing its reason for refusal
to ratify the contract or for making any alteration or modification therein.
29. Peiiallies.—Any person who,—
having in his possession, custody or control any property
forming part of the undertaking or wrongfully withholds any property from
the Government or-the State Industrial Development Corporation, or any
person authorised by the Government or the said Corporation, as the case
may be, in this behalf; or
wrongfully obtains possession of, or retains any property
forming part of the undertaking or willfully withholds or fails to furnish to
the Government, the Kerala State Industrial Development Corporation, or
any person specified by the Government or the said Corporation, as the
case may be, any document relating to such undertaking which may be in
his possession, custody or control or fails to deliver to the State Industrial
Development Corporation or any person specified by that Corporation any
assets, books of account, registers or other documents in his custody
relating to the undertaking; or
1-
19
(c) wrongfully renioves or destroys any property forming part of
the undertaking Or prefers any claim under the Act which he knows or
has reasonable cuse to believe to be false or grossly inaccurate;
shall be punishabe with imprisonment for a term which may extend to two
years or with fm -which may extend to ten thousand rupees or with both.
30. Qffènce t, by companies.—(l) Where an offence under this Act
has been committed by a company, every person who at the time the
offence was cormmitted was in charge of, and was responsible to, the
- company for the conduct of the business of the company as well as the
Company, shall Ibe deemed to be guilty of the offence and shall be liable
to be proceedec against and punished accordingly:
Provided It nothing contained in -this sub-section shall render any
such person 141e to any punishment, if he proves that the offence was
committed without his knowledge or that he had exercised all due
diligence to prvent the commission of such offence. -
(2) Ntwithstanding anything contained in sub-section (1), where
any offence uiider this Act has been committed by a company and it is
proved that the offence has been committed with the consent or
connivance of, or is attributable to any neglect on the part of, any director,
manager, secretary or other officer of the-. company, such director,
manager, secetary or other officer shall be deemed to be guity of that
' offence and shall be liable to be proceeded against and 'punished
accordingly. .
- Exp/anation:—For the purposes of this section,— -
"company" means any body corporale and inclu4es a
- firm or other association of persons or a Co-operative Sociefy; and
"director" in relation to a,firrn, means a partner in
the finn.
31. Pr4teciion of action taken in -good faith.—No suit, prosecution
or other legl proceeding-shall lie against the Government or any officer of
the Government or the State Industrial Development Corporation or
20
any Subsidiary Corporation or any officer or other person authorised by
either of such Corporation for anything which is in good faith done or
intended to be done under this Act.
Delegation of powers.—( 1) The Government may, by notification
in the Gazette, direct that all or any of the powers exercisable by them
under this Act, other than the powers under section 33 and section 35, $
may also be exercised by any person or persons as may be specified in
the notification.
(2) Whenever any delegation of power is made under
sub-section (1), the person to whom such power has been delegated shall
act under the direction, control and supervision of the Government.
Power to remove dfflculties.—If any difficulty arises in giving
effect to the provisions of this Act, the Government may, by order, not
inconsistent with the provisions of this Act, remove such difficulty:
Provided that no such order shall be made after the expiry of a period
of two years from the date Of commencement of this Act.
Declaration as to the policy of the State.—It is hereby
declared that this Act is for giving effect to the policy of the State
towards securing the principles specified in clause (b) of article 39 of the
Constitution of India.
Explanation:—In this section "State" has the same meaning as in
article 12 of the Constitution of India.
Power to make rules.—(l) The Government may, by notification
in the Gazette, make rules to carry out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the
foregoing power, such rules may provide for all or any of the following
matters, namely:—
(a) the time within which and the manner in which an
intimation referred to in sub-section (4) of section 4 shall be given;
.1. -.
21
(b) the manner in which money in any provident fund or
other fund ref?rred to in section 15 shall be dealt with,
() any other matter which is required to be, or may be,
..presribêd.
(3) Every rule made under this Act shall be laid as soon as may
be after it iS nade, before the Legislative Assembly, while it is in session,'
for a total pehod of fourteen days which may be compnsed in one session
or in two sucessive sessions, and if, before the expiry of the - session in
- which it is so laid or the session immediately following, the Legislative
Assembly i4akes any modification in the ruleor decides that the. rule
should not-be in'ade,.the rule shall thereafter have effect only in such
modified foim or be' of no effect, as the case may be; so however, that
. . any such ffiodification or annulment shall be %without prejudice to the
validity, of dnything 'previously done under that rule. ••
THE Fusi SCHEDULE • .
[See,sections 2(f),'2(g), 4(5) and 8] '.
Nqme' k the • Name of the '' Amount
• under4iking . S Owner (in Rupees)
. (2) • • .. -
Th 'Hdndloom Wéàving 'The' Commonwealth 500 lakhs
-• •,. -. 'Factory! of the Common- Trust (India)" (Excluding
wealth/Trust India Limited, • Limited • • . - liabilities)
Mananchira, •. • ' • • '
Kozhikode..
.22.
THE SE'OND SCHEDULE
- (See sections 20, 21, 22 and 26)
ORDER OF PRIORITIES FOR THE DISCHARGE OF LIABILITIES S
IN RESPECT OF THE UNDERTAKING
PART I
Category 1 .
Arrears in relation to provident fund, salaries and wages, and other
amounts, due to an employee for the pre-take over management period.
PART Il—OTHER LIABILITIES
(A) POST-TAKEOVER MANAGEMENT PERIOD
Category 11 :
Loans advanced by a Bank.
Loans advanced by an Institution other than a Bank.
Any other loan.
Any credit availed of for purposes of trade or manufacturing
operations.
Category III
Revenue, taxes, cesses, rates or any other dues to the Central
Government or a State Government.
Any other dues. .
(B) PRE-TAKEOVER MANAGEMENT. PERIOD
Category IV .
Principal amounts of the secured loans advanced by any Nationalised
Bank or Public Financial Institution.
23
Caiego;y V
.:Secured loans other than those SpecIfied under Categiy Iv.
Catégoiy Vi
RevenueI'State
taxes, cesses, rates or any other dues to the Central
Government, Government, a local authority or a State Electricity
Board.
Category VII -
(a) Aliy credit availed of for purpose of trade or manufacturing
ojkrations.
(b) Any other . dues.
Catego,y iIJI •
Interest Imounts on the secured loans advanced by any Nationâlised
Bank or Public Financial Institution
.• THE TnIRD SCHEDULE S
[See sections 2(h)]
Descriptioiio
m X en f properties.. Name of the E Fair.
sold and used Owner . Value
(1) (2) (3) (4)
Kozhikocle Taluk The Conirnonwealth
Nagararn Village Trust (India) Ltd., 1.5547 24,70,000/
I Résurve-T S •KOzhikodè. Hectare Are.
77-l48 .•
7-7-131 • •
7-7-12 • •
78-134 •• . .
7-8-15 S.
7-8-1,S7 • S
7-8-169 :: • 5
0
0
0 • 0