LexThe Kerala Sick Textile Undertakings(Acquisition and Transfer of Undertakings) Act, 1985(27 of 1985)
Kerala · state statute
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Government of Kerala
1986
KERALA GAZETTE
EXTRAORDINARY
PUBLISHED BY AUTHORITY
4th
March 1986
Vol.XXXI ] Trivandrum, Tuesday,
_________________________ [No.190
13 th Phalguna 1907
GOVERNMENT OF KERALA
Law (Legislation-C) Department
NOTIFICATION
No. 4309/Leg.C3/85/Law. Dated,T rivandrum, 4thMarch,1986
13th Phalguna, 1907.
In pursuance of clause (3) of article 348 of the Constitution of India, the
Governor is pleased to authorize the publication in the Gazette of the
following translation in the English language of the Kerala Sick T extiles
Undertakings (Acquisition and T ransfer of Undertakings) Act, 1985 (27
of 1985).
By Order of the Governor,
P .P MATHAI,
Secretary (Legislation)
__________________________________________________________________
PRINTED AND PUBLISHED BY THE B.O.P . AT THE GOVERNMENT
PRESS TRIVANDRUM 1986
33/763/86/MC
1
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ACT 27 OF 1985
THE KERALA SICK TEXTILE UNDERTAKING
(ACQUISITON AND TRANSFER OF UNDERTAKINGS )
ACT, 1985
[Received the assent of the President on the 14 th day of October,
1985 and published as Act 27 of 1985 in Kerala Gazette
Extraordinary No.830 dated the 15th October, 1985.]
An Act to provide for the acquisition and transfer of the
undertakings of the prabhuram Mills, Chengannur, the Kottaym
T extiles, Kurumulloor, Kottayam and the Malabar Spinning and
Weaving Mills, Kallai, Calicut and the right, title and interest of
the owners in respect if those undertakings with a view to
reorganising and rehabilitating such undertakings and for matters
connected therewith or incidental thereto.
Preamble – WHEREAS, the Prabhuram Mills chengannur, the
Kottaym T extiles, Kurumulloor, Kottayam and the Malabar
Spinning and Weaving Mills, Kallai, Calicut are engaged in the
production of textiles made wholly or in part of cotton, including
cotton yarn, hosiery and rope ;
AND WHEREAS the management of the undertakings of the said
textile mills were taken over by the Central Government for a
limited period under section 18AA of the Industries (Development
and Regulation) Act, 1951 (Central Act 65 of 1951), and the
Kerala State T extile Corporation was appointed under the said
section as the authorised person for the management of the
undertakings ;
AND WHEREAS an amount of approximately two hundred lakhs
rupees have been spent on the said undertakings by the State
Government to make them viable ;
AND WHEREAS the said undertakings were declared as relief
undertakings under section 3 of the Kerala Relief undertakings
(Special Provisions )Act, 1961 (6 of 1962);
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AND WHEREAS it is necessary to acquire the undertakings aforesaid
with a view to reorganizing and rehabilitating those undertakings as to
subserve the interests of the general public by the augmentation of
the production and distribution, at fair prices of the aforesaid goods;
BE it enacted in the Thirty-Sixth Year of the Republic of India as
follows:-
CHAPTER 1
PRELIMINARY
1. Short title and commencement .- (1) This Act may be called the
Kerala Sick T extile Undertakings (Acquisition and Transfer of
Undertakings) Act,1985.
(2) It shall be deemed to have come into force on the
5thday of October,1984.
2. Definitions .- (1) In this Act, unless the context otherwise
requires,-
(a) “appointed day” means the 1st day of September, 1983;
(b) “authorised person” means the person or body of persons
appointed under section 18AA of the Industries (Development and
Regulation) Act, 1951 (Central Act 65 of 1951), to take over the
management of the sick textile undertakings;
(c) “bank” means-
(i) the State Bank of India constituted under the State
Bank of India Act,1955 (Central Act 23 of 1955);
(ii) a subsidiary bank as defined in the State Bank of
India (Subsidiary Banks) Act, 1959 (Central Act 38 of 1959);
(iii) a corresponding new bank constituted under section
3 of the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1970 (Central Act 5 of 1970), or under section 3 of the Banking
Companies (Acquisition and T ransfer of Undertakings) Act, 1980
(Central Act 40 of 1980);
(iv) any other bank, being a scheduled bank as defined
in clause (e) of section 2 of the Reserve Bank of India Act, 1934
(Central Act 2 of 1934);
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(d) “Commissioner” means a Commissioner of Payments
appointed under section 16;
(e) “owner”, when used in relation to a sick textile undertaking,
means the person or firm who or which was, immediately before the
take-over of the management of the undertakings under section 18AA
of the Industries (Development and Regulation) Act,1951 (Central Act
65 of 1951), the immediate proprietor or lessee or occupier of the sick
textile undertaking or any part thereof;
(f) “prescribed” means prescribed by rules made under this Act;
(g) “sick textile undertaking” means a textile undertaking
specified in the First Schedule, the management of which has, before
the appointed day, been taken over by the Central Government under
the Industries (Development and Regulation) Act,1951 (Central Act 65
of 1951);
(h) “specified date” means such date as the Government may,
for the purpose of any provision of this act, by notification in the
Gazette, specify; and different dates may be specified for different
provisions of this Act;
(i) “State T extile Corporation” means the Kerala State T extile
Corporation Limited formed and registered under the Companies Act,
1956 (Central Act 1 of 1956);
(j) “textile company” means a company specified in column (3)
of the First Schedule as owning the undertaking specified in the
corresponding entry in column (2) of that Schedule;.
(k) “Subsidiary textile corporation” means a company formed by
the State T extile Corporation as its subsidiary;.
(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 Act.
(3) Words and expressions used but not defined either in this
Act either in this Act or in the Industries (Development and Regulation)
Act, 1951 (Central Act 65 of 1951), but defined in the Companies Act,
1956 (Central Act 1 of 1956), shall have the meanings respectively
assigned to them in the Companies Act, 1956 (Central Act 1 of 1956).
CHAPTER II
ACQUISITION OF THE RIGHTS OF THE OWNERS OF SICK TEXTILE
UNDERTAKINGS
3. Acquisition of the rights of owners in respect of sick
textile undertakings.- (1) On the appointed day, every sick textile
Undertaking and the right, title and interest of the owner in
relation to every such sick textile undertakings shall, by virtue of
this Act, stand transferred to, and shall vest absolutely in, the
State Government.
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(2) Every sick textile undertaking which stands vested in the
State Government, by virtue of sub-section (1) shall, immediately
after it has so vested, stands transferred to and vest in, the State
T extile Corporation.
4. General effect of vesting.- (1) Every sick textile
undertaking referred to in section 3 shall be deemed to include all
assets, rights, lease-holds, powers, authorities and privileges and
all property, movable and immovable, including land, 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 appointed day in the
possession, power or control of the authorised person 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.
(2) All properties as aforesaid which have vested in the
State 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 court restricting the use of such property in any manner shall
be deemed to have been withdrawn.
(3) Where any license or other instrument in relation to a
sick textile undertaking had been granted at any time before the
appointed day to an owner by the Central Government or a State
Government or any other authority, the State T extile Corporation
shall, on and from the appointed day, be deemed to be
substituted in such licence or other instrument in place of the
owner referred to there in as if such license or other instrument
had been granted to it and shall hold such licence or the sick
textile undertaking specified in such other instrument for the
reminder of the period for which the owner would have held such
licence or the sick textile undertaking under such other
instrument.
(4) Every mortgagee of any property which has vested
under this Act in the State 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
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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 mortgagee of any property referred to in sub-section (2) or
any other person 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 interest, payment 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 enforceable
against any property which has vested in the State Government.
(6) If, on the appointed day, 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 sick textile
undertaking, instituted or preferred by or against the textile
company or the authorised person, is pending, the same shall
not abate, be discontinued or be, in any way, prejudicially
affected by reason of the transfer of the sick textile
understanding or of anything contained in this Act but the suit,
appeal or other proceeding may be continued, prosecuted and
enforced by the State T extile Corporation.
5. Owner to the liable for certain prior liabilities.- (1) Every
liability, other than the liability specified in sub-section (2), of the
owner of a sick textile undertaking, in respect of any period prior
to the appointed day shall be the liability of such owner and shall
be enforceable against him and not against to the State
Government or the State T extile Corporation
(2) any liability arising in respect of-
(a) Loans advanced by the Central Government or the
State Government to a sick textile undertaking (together with
interest due thereon) after the management of such undertaking
had been taken over by the Central Government under section
18AA of the Industries (Development and Regulation) Act, 1951
(Central Act 65 of 1951);
(b) amounts advanced to a sick textile undertaking
(after the management of such undertaking had been taken over
by the Central Government under the said section 18AA ) by the
State T extile Corporation together with interest due thereon;
(c) wages, salaries and other dues of employees of the
sick textile undertaking, in respect of any period after the
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management of such undertaking had been taken over by the
Central Government under the said section 18AA, shall on and
from the appointed day, be the liability of the State Government
and shall be discharged, for and on behalf of that Government, by
the State T extile 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-
(a) save as otherwise expressly provided in this section
or in any other section of the Act, no liability, other than the
liability specified in sub-action. (2), in relation to a sick textile
undertaking in respect of any period prior to the appointed day,
shall be enforceable against the State Government or the State
T extile Corporation.
(b) no award, decree or order of any court, tribunal or
other authority in relation to any sick textile undertakings passed
after the appointed day 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
State Government or the State T extile Corporation.
(c) no liability of any sick textile undertaking or any owner thereof
for the contravention, before the management of such
undertaking had been taken over by the Central Government
under Section 18 AA of the Industries (Development and
Regulation) Act, 1951 (Central Act 65 of 1951), of any provision
of a law for the time being in force, shall be enforceable against
the State Government or the State T extile Corporation.
6. State T extile Corporation to form subsidiary corporations .–
(1) The State T extile Corporation may, if it considers it necessary
to do so, form subsidiary corporations under the Companies Act,
1956 (Central Act 1 of 1956), and register them under that Act.
(2) The State T extile Corporation may, by order in writing,
transfer any sick textile undertaking or part thereof to a
subsidiary textile corporation and any such transfer shall be
subject to such terms and conditions as may be specified in the
said order.
(3) The subsidiary T extile Corporation 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 the State T extile Corporation as if such licence or other
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instrument had been granted to the Subsidiary T extile
Corporation, and shall hold such licence of other instrument for
the remainder of the period for which the State T extile
Corporation would have held such licence or other instrument.
(4) On the transfer to a Subsidiary T extile Corporation of any
sick textile undertaking or any part thereof, the liabilities required
to be discharged by the State T extile Corporation under sub-
section (2) of section 5 shall, in so far as they relate to the sick
textile undertaking or part thereof so transferred to the
Subsidiary T extile Corporation, be discharged, on and from the
date of such transfer by the Subsidiary T extile Corporation as and
when any such liability is required to be discharged.
(5) Save as otherwise expressly provided in this Act,
references in this Act to the State T extile Corporation shall in
respect of any sick textile undertaking or any part thereof which
is transferred to a Subsidiary T extile Corporation, be construed as
references to the Subsidiary textile corporation.
7. Shares to be issued by the State T extile Corporation for the
value of the assets transferred to it by State Government .– (1)
An amount equal to the value of the assets of a sick textile
undertaking transferred to, and vested in, the State T extile
Corporation under sub-section (2) of section 3, shall be deemed
to be the contribution made by the State Government to the
equity capital of the State T extile Corporation; and for the
contribution so made, the State T extile Corporation shall issue (if
necessary after amending its memorandum and articles of
association) to the State Government paid-up shares, in its equity
capital, having a face value equal to the amount specified against
the sick textile undertaking in the corresponding entry in column
(4) of the First Schedule.
(2) Where any liability is assumed by the State Government
under sub section (1) of section 25, they may call upon the State
T extile Corporation to issue (if necessary after amending the
memorandum and articles of association of the Corporation) to
the State Government additional paid-up shares. In its equity
capital, having a face value equal to the amount of the liability
assumed by the State Government under the said sub-section.
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CHAPTER III
PAYMENT OF AMOUNT
8. Payment of amount to owners of sick textile undertakings.-
(1) The owner of every sick textile undertaking shall be given by
the State 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 sick textile undertaking, and the right,
title and interest of the owner in relation to such sick textile
undertaking an amount equal to the amount specified against it
in the corresponding entry in column (4) of the First Schedule.
(2) In addition to the amount referred to in sub-section
(1) there shall be given by the State Government, in cash, to the
owner of every sick textile undertaking, simple interest at the
rate of four percent per annum on the amount specified against
such owner in the corresponding entry in column (4) of the First
Schedule for the period commencing on the appointed day, and
ending on the date on which payment of such amount is made by
the State Government of the Commissioner.
9. Payment of further amount .– (1) Every T extile company
shall be given by the State Government for the deprivation of
management of its undertaking an amount of one thousand
rupees per annum for the period commencing on the date on
which the management of the undertaking of that company was
taken over in pursuance of the order made by the Central
Government under the provisions of the Industries (Development
and Regulation) Act, 1951 (Central Act 65 of 1951), and ending
on the appointed day.
(2) The amount calculated in accordance with the
provisions of the sub-section (1) shall carry simple interest at the
rate of four percent per annum for the period commencing on the
appointed day and ending on the date on which the payment of
such amount is made by the State Government to the
Commissioner.
(3) The amounts determined in relation to any textile
company in accordance with the provisions of sub-sections (1)
and (2) shall be given by the State Government to the textile
company in addition to the amount specified in the First Schedule
against that company.
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CHAPTER IV
MANAGEMENT, ETC., OF SICK TEXTILE UNDERTAKINGS
10. Management, etc., of sick textile undertakings .– The
State T extile 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
management of the affairs and business of a sick textile
undertaking, the right, title and interest 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 sick textile
undertaking is authorised to exercise and do.
11. Duty of persons in charge of management of sick textile
undertakings to deliver all assets, etc . – On the vesting of the
management of a sick textile undertaking in the State T extile
Corporation, all persons in charge of the management of such
sick textile undertaking immediately before such vesting shall be
bound to deliver to the State T extile Corporation all assets, books
of accounts, registers or other documents in their custody
relating to the sick textile undertaking .
12. Accounts.- The State T extile Corporation shall maintain
the accounts of sick textiles undertakings in accordance with the
provisions of the Companies Act, 1956 (Central Act I of 1956).
CHAPTER V
PROVISIONS RELATING TO EMPLOYEES OF SICK TEXTILE
UNDERTAKING
13. 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 the appointed day, employed in a sick
textile undertaking shall become on and from the appointed day ,
an employee of, the State T extile Corporation with the same
rights and privileges as to pension, gratuity and other matters
would have been admissible to him if the rights in relation to such
sick textile undertaking had not been transferred to, and vested
in , the State T extile Corporation and shall continue to do so
unless and until his employment in the State T extile Corporation
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is duly terminated or until his remuneration, terms and conditions
of employment are duly altered by the State T extile 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 the appointed day, employed
in a sick textile undertaking shall, in so far as such person is
employed, in connection with the sick textile undertaking which
has vested in the State T extile Corporation, become, on and from
the appointed day, an employee of the State T extile Corporation
and shall hold his office or service therein by the same tenure, at
the same remuneration and upon the same terms and conditions
and with the same rights and privileges as to pension and
gratuity and other matters as he would have held the same under
the sick textile undertaking if it had not vested in the State
T extile Corporation and shall continue to do so unless and until
his employment in the State T extile Corporation is duly
terminated or until his remuneration, terms and conditions of
employment are duly altered by the State T extile 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 transfer of the services of any
officer or other person employed in a sick textile undertaking to
the State T extile Corporation shall not entitle such officer or other
employee to any compensation under this Act or any other law
for the time being in force and no such claim shall be entertained
by any court, tribunal or other authority.
(4) Where, under the terms of any contract of service or
otherwise, any person whose services become terminated or
whose services become transferred to the State T extile
Corporation by reason 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 payment/ not being payment by way of
gratuity or pension for any period prior to the take over of the
management of a sick textile undertaking under section 18AA of
the Industries (Development and Regulation) Act, 1951 (Central
Act 65 of 1951), such person may, except to the extent such
liability has been taken over by the State Government under
section 5, enforce his claim against the owner of the sick textile
undertaking but not against the State Government or the State
T extile Corporation.
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14. Provident and other funds .– (1) Where the owner of a sick
textile undertaking has established a provident fund,
superannuation, welfare or other fund for the benefit of the
persons employed in such sick textile undertaking, the moneys
relatable to the employees, whose services have become
transferred by or under this Act to the State T extile Corporation
shall, out of the moneys standing, on the appointed day, to the
credit of such provident fund, superannuation, welfare or other
fund, stand transferred to, and shall vest in, the State T extile
Corporation.
(2) The moneys which stand transferred under sub-section
(1) to the State T extile Corporation shall be dealt with by the
Corporation in such manner as may be prescribed.
15. Transfer of employees to subsidiary T extile Corporation .–
Where any sick textile undertaking or any part thereof is
transferred under this Act, to a Subsidiary T extile Corporation,
every person referred to in sub-section (1) and sub-section (2) of
section 13, shall, on and from the date of such transfer, become
an employee of the Subsidiary T extile Corporation, and the
provisions of sections 13 and 14 shall apply to such employee as
they apply to an employee of the State T extile Corporation as if
references in the said sections to the State T extile Corporation
were references to the Subsidiary T extile Corporation.
CHAPTER VI
COMMISSIONERS OF PAYMENTS
16. Appointment of Commissioners of Payments.- (1) For the
purpose of disbursing the amounts payable to the owner of each
sick textile undertaking, the State Government shall, by
notification in the Gazette.-
(a) appoint such persons as they may think fit to be
commissioners of Payments ; and
(b) specify the sick textile undertaking or sick textile
undertakings in respect of which each Commissioner of Payments
shall exercise the powers conferred, and perform the duties
imposed, on him by under this Act.
(2) The State Government may appoint such other persons
as they may think fit to assist the Commissioner and thereupon
the Commissioner may authorise one or more of such persons
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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.
(3) Any person authorised by the Commissioner to exercise
any 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 way of authorisation.
(4) The salaries and allowances of the Commissioners shall
be defrayed out of the Consolidated Fund of the State of Kerala.
17. Payment by State Government to the Commissioner .-(1)
The State Government shall, within thirty days from the specified
date, pay in cash to the Commissioner, for payment to the owner
of a sick textile undertaking, an amount equal to the amount
specified against the sick textile undertaking in the First Schedule
and shall also pay to the Commissioner such sums as may be due
to the owner of a sick textile undertaking under sub-section (2) of
section 8 and section 9.
(2) A separate account shall be opened by the State
Government in favour of 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 Commissioner.
(3) Separate records shall be maintained by the
Commissioner in respect of each sick textile undertaking in
relation to which payments have been made to him under this
Act.
(4) Interest accruing on the amounts standing to the credit
of the account referred to in sub section (2) shall enure to the
benefit of the owners of the sick textile undertakings.
18. Claims to be made to the Commissioner . – Every person
having a claim against the owner of a sick textile undertaking
shall prefer such claim before the Commissioner within ninety
days from the specified date:
Provided that if the Commissioner is satisfied that the
claimant was prevented by sufficient cause from preferring the
claim within the said period of ninety days may entertain the
claim within a further period of thirty days but not thereafter.
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1(18A. Certain rights of the State T extile Corporation.- (1)
The State T extile Corporation shall be entitled to receive,
upto the specified date, to the exclusion of all other
persons, any money due to the sick textile undertaking
realised after the appointed day, notwithstanding that the
realisation pertains to a period prior to the appointed day.
(2) The State T extile Corporation may make a claim
to the Commissioner with regard to every payment made by
the sick textile undertaking after the first day of September,
1983 but before the fifth day of October, 1984, in relation to
any period prior to the appointed day and every such claim
shall have priority in accordance with the priorities under
this Act.
(3) Save as otherwise provided in this Act, the
liabilities in relation to a sick textile undertaking in respect
of any period prior to the appointed day, which have not
been discharged by the authorised person, shall be the
liabilities of the owner of that sick textile undertaking).
19. Priority of claims .- The claims arising out of the
matters specified in the Second Schedule shall have priorities in
accordance with the following principles, namely :--
(a) Category I will have precedence over all other
categories and Category II will have a precedence over category
III and so on;
(b) 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 ;
(c) 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,
interse of such loans ; and
(d) The question of payment of a liability with regard to
a matter specified in lower category shall arise only if a surplus is
left after meeting all the liabilities specified in the immediately
higher category.
1. Inserted by Act 10 of 1990
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20. Examination of claims .- (1) On receipt of the claims
under section 18, 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 not be required to examine the liabilities in respect of
such lower category.
21. Admission or rejection of claims.- (1) 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 specified by the Commissioner shall be
excluded from the disbursements made by the Commissioner.
(4) The Commissioner shall, after such investigation as
may, in his opinion, be necessary and after giving the owner of
the sick textile undertaking an opportunity of refuting the claim
and after giving the claimants a reasonable opportunity of being
heard, in writing, admit or reject the claim in whole or in part.
(5) The Commissioner shall have the power to regulate his own
procedure in all matters arising out of the discharge of 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:-
(a) Summoning and enforcing the attendance of any
person and examining him on oath;
(b) discovery and production of any document or other
material object producible as evidence ;
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(c) reception of evidence on affidavits ;
(d) issue of commissions for the examination of witnesses
(6) Any investigation before the commissioner shall be
deemed to be a Judicial proceeding within the meaning of section
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
purpose of section 195 and Chapter XXVI of the Code of Criminal
Procedure 1973 (Central Act 2 of 1974).
(7) A claimant who is dissatisfied with the decision of the
commissioner may prefer an appeal against the decision to the
principal civil court of original Jurisdiction within the local limits of
whose Jurisdiction the sick textile undertaking is situated.
22.Disbursement 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 paid to the person or persons to whom such
sums are due and on such credit or payment the liability of the
owner in respect of such claim shall stand discharged.
23. Disbursement of amounts to the owners of sick textile
undertaking.- (1) If out of the moneys paid to him in relation to a
sick textile undertaking, there is a balance left after meeting the
liabilities as specified in the Second Schedule, the Commissioner
shall disburse such balance to the owner of such sick textile
undertaking.
(2) Before making any payment to the owner of any sick
textile 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 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.
(3) For the removal of doubts, it is hereby declared that the
entries in column (3) of the First Schedule shall not be deemed to
be conclusive as to the right, title and interest of any person in
relation to any sick textile undertaking specified in the
corresponding entries in column (2) of the said Schedule, and
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evidence shall be admissible to establish the right, title and
interest of any person in relation to such sick textile undertaking.
(4) Where any machinery, equipment or other property in a
sick textile undertaking has vested in the State T extile
Corporation but such machinery, equipment or other property
does not belong to the owner of such sick textile undertaking, the
amount specified in column (4) of the First Schedule against such
sick textile undertaking shall, on a reference made to it by the
Commissioner, be appointed by the court between the owner of
such sick textile 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 appointed
day.
Explanation :- In this section, “court”, in relation to a sick
textile undertaking, means the principal civil court of original
jurisdiction within the local limits of whose jurisdiction the sick
textile undertaking is situated.
24. Undisbursed or unclaimed amounts to be deposited to
the general revenue account.- Any money paid to the
Commissioner which remains undisbursed or unclaimed for a
period of three years from the last day on which the
disbursement was made shall be transferred by the
Commissioner to the general revenue account of the State
Government, but a claim to any money so transferred may be
preferred to the State Government by the person entitled to such
payment and shall be dealt with as if such transfer and had not
been made, the order, if any, for payment of the claim being
treated as an order for the refund of revenue.
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CHAPTER VII
MISCELLANEOUS
25. Assumption of liability.- 1(1) (Where any liability of a sick
textile undertaking arising out of any claim specified in section
18A or Category I or Category II or Category III or Category IV in
the Second Schedule is not discharged fully by the Commissioner
out of the amount paid to him under this Act, the Commissioner
shall intimate in writing to the State Government the extent of
the liability which remains undischarged, and that liability shall
be assumed by the State Government).
(2) The liability assumed by the State 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 interest at the rate of seven and a
half per cent per annum with effect from the appointed day.
26. Act to over-ride all other enactments.- 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 decree or order of any court, tribunal or
authority.
27. Contracts to cease to have effect unless ratified by State
T extile Corporation.- (1) Every contract entered into by the owner
or occupier of any sick textile undertaking for any service, sale or
supply and in force immediately before the appointed day shall,
on and from the expiry of one hundred and eighty days from the
date of commencement of this Act, cease to have effect unless
such contract is, before the expiry of that period, ratified, in
writing, by the State T extile Corporation, and in ratifying such
contract the State T extile Corporation may, with the previous
approval of the State Government, make such alterations or
modifications therein as it may think fit:
1. substituted by Act 10 of 1990
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Provided that State textile Corporation shall not omit to
ratify 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 sick textile undertaking.
(2) The State T extile Corporation shall not omit to ratify 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 reasons for refusal to ratify the contract or for
making any alteration or modification therein.
28. Penalties .- Any person who,- (a) having in his
possession, custody or control any property forming part of a sick
textile undertaking, wrongfully withholds such property from the
State Government or the State T extile Corporation, or any person
authorised by that Government or Corporation, as the case may
be, in this behalf; or
(b) wrongfully obtains possession of, or retains, any
property forming part of the sick textile undertaking or willfully
withholds or fails to furnish to the State Government, the State
T extile Corporation, or any person specified by that Government
or corporation, as the case may be any document relating to such
sick textile undertaking which may be in his possession, custody,
or control or fails to deliver to the State T extile Corporation or any
person specified by that Corporation any assets, books of
account, registers or other documents in his custody relating to
the sick textile undertaking; or
(c) wrongfully removes or destroys any property forming
part of any sick textile undertaking or prefers any claim under
this Act which he knows or has reasonable cause to believe to be
false or grossly inaccurate, shall be punishable with imprisonment
for a term which may extend to two years, or with fine which may
extend to ten thousands rupees, or with both.
29. Offence by companies .- (1) Where an offence under this
Act has been committed by a company every person who at the
time the offence was committed 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 be deemed to be
guilty of the offence and shall be liable to be proceeded against
and punished accordingly:
Provided that nothing contained in this sub-section shall
render any such person liable to any punishment, if he proves
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that the offence was committed without his knowledge or that he
had exercised all due diligence to prevent the commission of such
offence.
(2) Notwithstanding anything contained in sub-section (1),
where any offence under 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, secretary or
other officer shall be deemed to be guilty of that offence and
shall be liable to proceeded against and punished accordingly.
Explanation:- For the purposes of this section: -
(a) “company” means any body corporate and includes a firm
or other association of individual and
(b) “director” in relation to a firm, means a partner in the firm.
30. Protection of action taken in a good faith.- No suit,
Prosecution or other legal proceeding shall lie against the State
Government or any officer of that Government or the authorised
person or the State T extile Corporation or any Subsidiary T extile
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.
31. Delegation of powers .– (1) The State Government may,
by notification in the Gazette, direct that all or any of the powers
exercisable by them under this Act other than the power under
section 34 may also be exercised by any person or persons as
may 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 State
Government.
32. Power to remove difficulties .– If any difficulty arises in
giving effect to the provisions of this Act, the State Government
may, by order not inconsistent with the provisions 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.
33. 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
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towards securing the principles specified in clause (b) of Article
39 of the Constitution.
Explanation.- In this section “State” has the same meaning
as in Article 12 of the Constitution.
34. Power to make rules .- (1) 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;
(b) the manner in which moneys in any provident or other
fund referred to in section 14 shall be dealt with;
(c) any other matter which is required to be, or may be,
prescribed.
(3) Every rule made under this Act shall be laid, as soon as
may be after it is made, before the Legislative Assembly , while it
is in session,Excerpt shown. Open the full act in Lexace.