The Shivraj Fine Art Litho Works (Acquisition and Transfer of Undertaking) Act, 1984

1 6
GOVERNMENT OF MAHARASHTRA
LAW AND JUDICIARY DEPARTMENT
MAHARASHTRA ACT No. XXXVI
OF 1984
THE SHIVRAJ FINE ART LITHO WORKS
(ACQUISITION AND TRANSFER OF
UNDERTAKING) ACT, 1984.
(As modified upto the 30th August 2012 )
*
PRINTED IN INDIA BY THE MANAGER, GOVERNMENT CENTRAL PRESS, MUMBAI
AND PUBLISHED BY THE DIRECTOR, GOVERNMENT PRINTING, STATIONERY AND
PUBLICATIONS, MAHARASHTRA STATE, MUMBAI 400 004.
2012
[Price— Rs. 13.00]

1 8
THE SHIVRAJ FINE ART LITHO WORKS (ACQUISITION AND
TRANSFER OF UNDERTAKING) ACT, 1984.
CONTENTS
PREAMBLE.
SECTIONS.
1. Short title and commencement.
2. Definitions.
CHAPTER II
ACQUISITION AND TRANSFER OF THE UNDERTAKING
3. Acquisition and transfer of undertaking and its vesting in State
Government and its transfer and vesting in Corporation.
 4. General effect of vesting.
 5. Proprietors to be liable for prior liabilities.
 6. Power of State Government to direct vesting of undertaking
in new Government company.
6A. Taking over management of undertaking by State
Government.
CHAPTER III
PAYMENT OF AMOUNTS
 7. Payment of amount.
 8. Payment of further amount.
CHAPTER IV
MANAGEMENT, ETC. OF THE UNDERTAKING
9. Management, etc. of undertaking.
10. Duty of persons incharge of management of undertaking to
deliver all assets, etc.
11. Duty of persons to account for assets, etc., in their possession.
CHAPTER V
PROVISIONS RELATING TO THE EMPLOYEES OF THE PROPRIETORS
 12. Continuance of employees.
13. Provident fund and other funds.
CHAPTER VI
COMMISSIONER OF PAYMENTS
 14. Appointment of Commissioner of Payments.
 15. Payment by State Government to Commissioner.
16. Certain powers of State Government or Corporation or new
Government company.
17. Claims to be made to Commissioner.
 18. Priority of claims.
19. Examination of claims.
20. Admission or rejection of claims.
21. Disbursement of money by Commissioner to claimants.
22. Disbursement of amounts to proprietors.
23. Undisbursed or unclaimed amount to be deposited with general
revenue account.
1984: Mah. XXXVI] (i)
H 791—1
1 9
Shivraj Fine Art Litho Works (Acquisition
and Transfer of Undertaking) Act, 1984.
SECTIONS
CHAPTER VII
MISCELLANEOUS
24. Act to have overriding effect.
25. Contracts to cease to have effect unless ratified by State
Government or Corporation or new Government company.
26. Protection of action taken in good faith.
27. Delegation of powers.
28. Penalties.
29. Offences by companies.
30. Power to make rules.
31. Power to remove difficulties.
32. Repeal of Mah. Ord. V of 1984 and saving.
SCHEDULE
[1984 : Mah. XXXVI
(ii)
1
H 791—2
[THE SHIVRAJ FINE ART LITHO WORKS (ACQUISITION AND TRANSFER OF
UNDERTAKING) ACT, 1984.]
[This Act received the assent of the President on 21st December 1984;
the assent was first published in the “ Maharashtra Government
Gazette ” , Part IV, Extra-ordinary, on the 21st December1984.]
Amended by Mah. 33 of 1994 (7-5-1994) †
An Act to provide for the acquisition and transfer of the undertaking of
the Shivraj Fine Art Litho Works, Nagpur, with a view to securing the
proper management of such undertaking so as to subserve the interests
of the general public and the employees of the undertaking by ensuring
the continued manufacture, production and distribution of printed
lithographic material which are essential to the needs of the economy
of the State and country and for matters connected therewith or
incidental thereto.
WHEREAS a printing press styled as Shivraj Fine Art Litho Works,
Nagpur, was run by the members of a family as partners of a partnership
firm registered in the State of Maharashtra under the Indian Partnership
Act, 1932 ;
AND WHEREAS due to the disputes between the members cf the
family regarding dissolution of the partnership firm, which had been a
partnership at will, there ensued litigation amongst the partners and a
civil suit, being Chil Suit No. 9 of 1974 was filed in the Court of the Civil
Judge, Senior Division, Nagpur, wherein receivers were appointed from
time to time to manage the Shivraj Fine Art Litho Works and that suit
is pending in that Court ;
AND WHEREAS the Shivraj Fine Art Litho Works had been engaged
in the manufacture, production and distribution of printed engraved
lithographic material, being articles mentioned in the First Schedule
to the Industries (Development and Regulation) Act, 1951 ;
AND WHEREAS the undertaking, namely, Shivraj Fine Art Litho
Works, was closed down from the 17th May 1979, throwing about 460
employees out of employment ;
AND WHEREAS by Government of India, Ministry of Industry
(Department of Industrial Development) Order, No. SO 634(E)/18AA/
IDRA/80, dated the 23rd August 1980, the management of the
undertaking was taken over by the Central Government under the
provisions of the Industries (Development and Regulation) Act, 1951,
and the Development Corporation of Vidarbha Limited, Nagpur, was
appointed as the authorised person to manage the undertaking ;
AND WHEREAS in Writ Petition No. 2741 of 1980 filed by some of
the partners challenging the order of the Government of India taking
over the management of the undertaking as aforesaid, the High Court
of Bombay, Nagpur Bench, quashed the said order by its judgement
rendered on the 28th April 1982 ;
MAHARASHTRA ACT No. XXXVI OF 1984. 1
1 For Statement of Objects and Reasons, see Maharashtra Government Gazette, Part V,
Extraordinary, dated 13th November 1984, pages 374-375.
† This indicates the date of commencement of the Act.
IX of
1932.
LXV
of
1951.
LXV
of
1951.
2
AND WHEREAS the Development Corporation of Vidarbha Limited,
Nagpur, filed an appeal in the Supreme Court against the judgemeni of
the High Court and the Supreme Court had by its order, dated the 26th
May 1982, stayed the operation of the judgement of the High Court ;
AND WHEREAS the period for such management of the undertaking
had been extended from time to time and was to expire on the
22nd August 1984 ;
AND WHEREAS for the purpose of securing the optimum utilization
of the available facilities for the manufacture, production and distribution
of printed engraved lithographic material by the undertaking, its
continuous proper management and investment of a large amount was
necessary ;
AND WHEREAS it was expedient to acquire the said undertaking to
ensure that the interests of the general public and the employees of the
said undertaking were served by the continuance by the undertaking of
the manufacture, production and distribution of the aforesaid articles
which are essential to the needs of the economy of the State and the
country and to provide for matters connected therewith or incidental
thereto ;
AND WHEREAS such acquisition was for giving effect to the policy
of State towards securing the principle specified in clause ( b) of Article
39 of the Constitution of India ;
AND WHEREAS both Houses of the State Legislature were not in
session ;
AND WHEREAS the Governor of Maharashtra was satisfied that
circumstances existed which rendered it necessary for him to take
immediate action to make a law for the purposes aforesaid ; and,
therefore, promulgated the Shivraj Fine Art Litho Works (Acquisition
and Transfer of Undertaking) Ordinance, 1984 on the 11th August 1984 ;
AND WHEREAS it is expedient to replace the said Ordinance by an
Act of the State Legislature ; It is hereby enacted in the Thirty-fifth Year
of the Republic of India as follows :—
1. (1) This Act may be called the Shivraj Fine Art Litho Works
(Acquisition and Transfer of Undertaking) Act, 1984.
(2) It shall be deemed to have come into force on the 11th day of August
1984.
2.   In this Act unless the context otherwise requires,—
(a) “ appointed day ”  means the day on which this Act comes into
force ;
(b) “Commissioner ” means the Commissioner of Payments
appointed under section 14 ;
(c) “ Corporation ” means the Development Corporation of Vidarbha
Limited, Nagpur, a Government Company registered under the
Companies Act, 1956 ;
Mah
Ord. V
of
1984.
Short title
and
commence-
ment.
Definitions.
I of
1956.
3
(d) “ new Government company ” means a Government company
(including a subsidiary Government company) formed and registered
under the Companies Act, 1956 in which the undertaking is directed
to vest under sub-section ( 1) of section 6 ;
(e) “ prescribed ” means prescribed by rules made under this Act ;
(f) “ proprietors ” means the partnership firm, namely, the Shivraj
Fine Art Litho Works, Nagpur, registered under the Indian
Partnership Act, 1932, with head office at Subhash Road, Nagpur, as
it existed immediately before its dissolution on the 9th January 1974
and includes the receiver or receivers appointed in Civil Suit No. 9
of 1974 in the Court of the Civil Judge, Senior Division, Nagpur ;
(g) “ Schedule ” means the Schedule appended to this Act ;
(h) “ specified date ” , in relation to any provision of this Act, means
such date as the State Government may, by notification in the
Official Gazette, specify for the purposes of that provision, and different
dates may be specified for different provisions of this Act ;
(i) “ undertaking ” means the industrial undertaking known as
“Shivraj Fine Art Litho Works, Nagpur ”, belonging to the proprietors.
CHAPTER II
ACQUISITION AND TRANSFER OF THE UNDERTAKING
3. (1) On the appointed day, the undertaking and the right, title and
interest of the proprietors in relation to their undertaking, shall, by
virtue of this Act, stand transferred to, and vest absolutely in, the State
Government.
(2) 1[Subject to the other provisions of this Act, the undertaking]
which stands vested in the State Government by virtue of sub-section
(1) shall, immediately after it has so vested, stand transferred to, and
vested in, the Corporation.
4. (1) The undertaking shall be deemed to include all assets, rights,
lease-holds, 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, book debts and all other rights and interests
in, or arising out of, such property as were immediately before the
appointed day in the ownership, possession, power or control of the
proprietors whether within or outside India, and all books of account,
registers and all other documents of whatever nature relating thereto.
1 These words were substituted for the words “ The undertaking ”  by Mah. 33 of 1994, s.2.
Acquisition
and transfer
of
undertaking
and its
vesting in
State
Government
and its
transfer and
vesting in
Corporation.
General
effect of
vesting.
I of
1956.
IX of
1932.
H 791—2a
4
(2) All properties as aforesaid which have vested in the State
Government under section 3 shall, by force of such vesting, be freed and
discharged from any trust, obligation, mortgage, charge, lien and all
other encumbrances affecting them, and any attachment, injunction,
decree or order of any court, tribunal or other authority restricting the
use of such properties in any manner or appointing any receiver in
respect of the whole or any part of such properties shall be deemed to
have been withdrawn.
(3) 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 be prescribed, an intimation to
the Commissioner of such mortgage, charge, lien or other interest.
(4) For the removal of doubts, it is hereby declared that the mortgagee
of any property referred to in sub-section ( 3) 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 section 7 and also out of the amounts referred
to in section 8, but no such mortgage, charge, lien or other interest
shall be enforceable against any such property which has vested in the
State Government and the Corporation.
(5) Any licence or other instrument granted to the proprietors in
relation to the undertaking which has vested in the State Government
under section 3, at any time before the appointed day and in force
immediately before that day, shall continue to be in force on and after such
day in accordance with its tenor in relation to, and for the purposes of, such
undertaking and, on and from the date of vesting of such undertaking
under section 3 in the Corporation, or under section 6 in a new Government
company, the Corporation, or new Government company, as the case may
be, shall be deemed to be substituted in such licence or other instrument
as if such licence or other instrument had been granted tothe Corporation,
or new Government company, and that the Corporation, or new
Government company, shall hold it for the remainder of the period for
which the proprietors would have h eld it under the t erms thereof.
(6) If, on the appointed day, any suit, appeal or other proceeding of
whatever nature in relation to any property which has vested in the
Corporation under section 3, instituted or preferred by or against the
proprietors is pending, the same shall not abate, be discontinued or be,
in any way, prejudicially affected by reason of the transfer of the
undertaking or of anything contained in this Act but the suit, appeal or
other proceeding may be continued, prosecuted or enforced by or against
the Corporation, or new Government company, as the case may be.
Explanation.—For the purposes of this section the expression “ any
suit, appeal or other proceeding of whatever nature ” shall not include
Civil Suit No. 9 of 1974 pending in the Court of the Civil Judge, Senior
Division, Nagpur.
5. ( 1) Every liability other than the liability specified in sub-section
(2), of the proprietors in respect of any period prior to the appointed day,
shall be the liability of the proprietors and shall be enforceable against
them and not against the State Government or against the Corporation
or where the undertaking is directed under section 6 to vest in a new
Government company, against that new Government company.
(2) Any liability in respect of materials supplied to the undertaking
or of loans advanced to it or of any other nature, arising out of the
transactions entered into by the Corporation after the management of
the undertaking had been taken over by the Central Government shall,
on and from the appointed day, be the liability of the Corporation, and
shall, if it has remained undischarged on the appointed day, be discharged
by the Corporation.
Proprietors
to be liable
for prior
liabilities.
5
(3) For the removal of doubts, it is hereby declared that—
(a) save as otherwise expressly provided in this section or in any
other provision of this Act, no liability, other than the liability
specified in sub-section ( 2), of the proprietors in respect of any period
prior to the appointed day, shall be enforceable against the State
Government or the Corporation, or, where the undertaking is directed
under section 6 to vest in any other new Government company,
against such new Government company ;
(b) no award, decree or order of any Court, tribunal or other
authority in relation to the undertaking passed on or after the
appointed day, in respect of any matter, claim or dispute, not being
a matter, claim or dispute in relation to any matter referred to in
sub-section ( 2), which arose before that day, shall be enforceable
against the State Government or the Corporation or, where the
undertaking is directed under section 6 to vest in any other new
Government company, against such new Government company ;
 (c) no liability incurred by the proprietors before the appointed
day, for the contravention of any provision of any law for the time
being in force, shall be enforceable against the State Government or
the Corporation, or, where the undertaking is directed under section
6 to vest in any other new Government company, against such new
Government company ;
 (d) notwithstanding anything contained in sub-section (1) of section
12 or any other provisions of this Act or any other law for the time
being in force or any contract, agreement, settlement, award, or
decree or order of any court, tribunal or other authority, no liability
towards claims of whatever nature of any employee against the
proprietors in respect of his employment in the undertaking for the
period prior to the date of taking over the undertaking by the Central
Government for management under the provisions of the Industries
(Development and Regulation) Act, 1951, shall be enforceable against
the State Government or the Corporation.
6. (1) Notwithstanding anything contained in sections 3 and 4, where
the undertaking vests, under sub-section ( 2) of section 3, in the
Corporation, the State Government may, subject to such terms and
conditions as it may think fit to impose, direct, by notification in the
Official Gazette, that the undertaking and the right, title and interest
of the proprietors in relation to the undertaking which had vested in the
State Government and which on its transfer vests in the Corporation
under section 3, shall, instead of continuing to vest in the Corporation,
vest in a new Government company with effect from the date specified
in the notification.
(2) Where the right, title and interest of the proprietors in relation
to their undertaking vest, under sub-section ( 1), in a new Government
company, such Government company shall, on and from the date of
such vesting, be deemed to have become the owner in relation to such
undertaking, and all the rights and liabilities of the State Government
and the Corporation in relation to the undertaking, shall on and from
the date of such vesting, be deemed to have become the rights and
liabilities of such Government company.
1[6A.   ( 1) Nothing in sub-section ( 2) of section 3 or section 4 or in any
other provision of this Act shall be deemed to prevent the State
Government from taking over the management of the undertaking, the
right, title and interest in which vests absolutely in the State Government
by virtue of the provisions of sub-section ( 1) of section 3, or from
transferring the management again to any Corporation or new
Government company.
1  Section 6-A was inserted by Mah. 33 of 1994, s. 3.
LXV
of
1951. Power of
State
Government
to direct
vesting of
undertaking
in new
Government
company.
Taking over
management
of
undertaking
by State
Government.
6
(2) On and with effect from such date as the State Government may,
by notification in the Official Gazette, direct, the State Government
shall take over from the Corporation, the management of the
undertaking for management by itself as the owner thereof.
(3) In particular and without prejudice to the generality of the
provisions of sub-section ( 2) and notwithstanding anything contained in
sections 4, 9, 10, 11, 12 and 13, upon taking over the management of
the undertaking by the State Government, the following consequences
shall ensue in relation to the undertaking, that is to say,—
(a) (i) the properties and the management shall be deemed to have
been vested in the State Government ;
(ii) the State Government shall be deemed to have been substituted
in any licence or other instrument in relation to the undertaking ;
(iii) the suit, appeal or other proceeding may be continued,
prosecuted or enforced by or against the State Government ;
(b) for the purpose of management of the undertaking, the State
Government shall be entitled to exercise to the exclusion of all
persons, all such powers and do all such things in relation to the
undertaking as the owner thereof ;
(c) the Corporation in charge of the management of the undertaking
shall be bound to deliver to the State Government all assets, books
of accounts, registers and other documents in its custody relating to
the undertaking ;
(d) any person who has in his possession or under his control any
assets, books, documents or other papers relating to the undertaking,
shall be liable to account for the said assets, books, documents and
other papers to the State Government, and shall deliver them to the
State Government or to such person or persons as the State
Government may specify in this behalf ; and the State Government
may take, or cause to be taken, all necessary steps for securing
possession of the undertaking ;
(e) all the employees of the Corporation in relation to the
undertaking shall form a separate unit for the purposes of its accounts
and establishment, with the same rights and privileges as to salary,
gratuity and other conditions of service as would have been admissible
to them had the management of the Undertaking not been taken
over by the State Government and shall continue to be so unless and
until their employment is duly terminated or until their remuneration
and other conditions of service are duly altered by the State
Government and no officer or employee shall be entitled 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 ;
(f) the monies, if any, standing to the credit of provident fund,
superannuation fund, welfare fund or other fund in relation to the
employees of the undertaking shall be transferred to, and vested in,
the State Government and shall be dealt with in such manner as may
be prescribed.]
CHAPTER III
PAYMENT OF AMOUNTS
7. For the transfer to, and vesting in, the State Government, under
section 3, of the undertaking and the right, title and interest of the
proprietors in relation to their undertaking, there shall be paid by the
State Government to the proprietors, in cash, and in the manner
specified in Chapter VI, an amount of rupees fourteen lakhs and twelve
thousand.
Payment of
amount.
7
8. (1) For the deprivation of the proprietors of the management of
their under taking (which has remained closed with effect from the 17th
May 1979 to the 22nd August 1980) during the period commencing on
the 23rd August 1980 being the date on which the undertaking was
taken over in pursuance of the Orders made by the Central Government
under the provisions of the Industries (Development and Regulation)
Act, 1951 and ending on the appointed day, there shall be paid by the
State Government to the proprietors in cash and in the manner specified
in Chapter VI, an amount of rupees five thousand per annum.
(2) The amounts specified in section 7 shall carry simple interest at
the rate of four per cent per annum 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 to the Commissioner.
(3) The amount specified in sub-section (1) and the amount determined
in accordance with the provisions of sub-section (2) shall be given by the
State Government to the proprietors in addition to the amount specified
in section 7.
(4) For the removal of doubts, it is hereby declared that the liabilities
of the proprietors in relation to their undertaking which has vested in the
State Government under section 3 shall be discharged from the amounts
specified in section 7, and also from the amount specified in sub-section
(1) and the amount determined under sub-section ( 2), in accordance with
the rights and interests of the creditors of the proprietors.
CHAPTER IV
MANAGEMENT, ETC. OF THE UNDERTAKING
9. The general superintendence, direction, control and management
of the affairs and business of the undertaking, the right, title and
interest in relation to which have vested in the State Government
under sub-section ( 1) of section 3, shall—
(a) by virtue of the provisions of sub-section (2) of section 3, vest  in the
Corporation ; or
(b) where a direction has been issued by the State Government under sub-
section (1) of section 6, vest in the new Government company,
and thereupon the Corporation or such Government company, as the
case may be, shall be entitled to exercise, to the exclusion of all other
persons, all such powers and do all such things as the proprietors were
authorised to exercise and do in relation to their undertaking.
10. (1) On the vesting of the management of the undertaking in the
Corporation, or a new Government company, all persons in charge of
the management of the undertaking immediately before such vesting,
shall be bound to deliver to the Corporation, or a new Government
company, as the case may be, all assets, books of accounts, registers and
other documents in their custody relating to the undertaking.
(2) The State Government may issue such directions as it may deem
desirable in the circumstances of the case to the Corporation or a new
Government company and the Corporation or such Government company
may also, if it is considered necessary so to do, apply to the State
Government at any time for instructions as to the manner in which the
management of the undertaking shall be conducted or in relation to any
other matter arising in the course of such management.
11. ( 1) Any person who has, on the appointed day, in his possession
or under his control, any assets, books, documents or other papers
relating to the  undertaking, which have vested in the State Government
or in the Corporation, or in a new Government company under this Act,
shall be liable to account for the said assets, books documents and other
Payment of
further
amount.
Management
etc. of
undertaking.
Duty of
persons in
charge of
management
of
undertaking
to deliver all
assets, etc.
Duty of
person to
account for
assets, etc.,
in their
possession.
LXV of
1951.
8
papers to the State Government, or the Corporation,  or a new Government
company, as the case may be, and shall deliver them to the State Government,
or the Corporation or such Government company or to such person or persons
as the State Government or the Corporation or such Government company may
specify in this behalf.
(2) The State Government or the Corporation or the Government company
aforesaid may take, or cause to be taken, all necessary steps for securing
possession of the undertaking which has vested in the State Government or the
Corporation or such Government company under this Act.
(3) The proprietors shall, within such period as the State Government may
allow in this behalf, furnish to that Government a complete inventory of all its
properties and assets, as on the appointed day, pertaining to the undertaking
which has vested in the State Government under sub-section (1) of section 3 and
in the Corporation, by virtue of the provisions of sub-section (2) of that section,
and, for this purpose the State Government or the Corporation shall afford to
the proprietors all reasonable facilities.
CHAPTER V
PROVISIONS RELATING TO THE EMPLOYEES OF THE PROPRIETORS
12. (1) Every person who has been, immediately before the appointed day,
employed in the undertaking shall become,—
(a) on and from the appointed day, an employee of the Corporation ; and
(b) where the undertaking is directed under sub-section ( 1) of section 6,
to vest in a new Government company, an employee of such Government
company on and from the date of such vesting,
and shall hold office or service under the Corporation or such Government
company, as the case may be, with the same rights and privileges as to
pension, gratuity and other matters as would have been admissible to
him if there had been no such vesting and shall continue to do so unless
and until his employment under the Corporation, or as the case may be,
under such Government company, is duly terminated or until his
remuneration and other conditions of service are duly altered by the
Corporation or such Government company, as the case may be.
(2) Notwithstanding anything contained in the Industrial Disputes Act,
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 the undertaking, to the Corporation
or such Government company, shall not entitle such officer or other employee
to any compensation under this Act or under any other law for the time being
in force and no such claim shall be entertained by any Court, tribunal or other
authority.
13. (1) Where the proprietors have established a provident fund,
superannuation fund, welfare fund or any other fund for the benefit of the
persons employed in the undertaking, the monies relatable to the officers or
other employees, whose services have become transferred, by or under this Act,
to the Corporation or a new Government company, as the case may be, shall,
out of the monies standing on the appointed day, to the credit of such provident
fund, superannuation fund, welfare fund or other fund, stand transferred to, and
vested in, the Corporation or such Government company, as the case may be.
(2) The monies which stand transferred under sub-section ( 1) to the
Corporation or such Government company, as the case may be, shall be dealt
with by the Corporation or such Government company in such manner as may
be prescribed.
XIV of
1947.
Provident
fund and
other funds.
Continuance
of employees.
9
CHAPTER VI
COMMISSIONER OF PAYMENTS
14. (1) The State Government shall for the purpose of disbursing the amounts
payable under sections 7 and 8 to the proprietors, by notification in theOfficial
Gazette, appoint a Commisioner of Payments.
(2) The State Government may appoint such other persons as it may think
fit to assist the Commissioner and thereupon the 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.
(3) Any person authorised by the Commissioner to exercise any of the powers
exercisable by the Commissioner 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 Commissioner and other persons
appointed under this section shall be defrayed out of the Consolidated Fund of
the State.
15. (1) The State Government shall, within thirty days from the specified
date, pay in cash to the Commissioner, for payment to the proprietors,—
(a) an amount equal to the amount specified in section 7 ; and
(b) an amount equal to the amount payable to the proprietors under
section 8.
(2) A deposit account shall be opened by the State Government in favour of
the Commissioner in the Public Account of the State, and every amount paid
under this Act to the Commissioner shall be deposited by him to the credit of
the said deposit account and the said deposit account shall be operated by
the Commissioner.
(3) Records shall be maintained by the Commissioner in respect of the
undertaking in relation to which payment has been made to him under this Act.
(4) The interest accruing on the amount standing to the credit of the deposit
account referred to in sub-section (2) shall ensure to the benefit of the proprietors.
16. (1) The State Government or the Corporation, or where a direction has
been issued by the State Government under sub-section (1) of section 6, a new
Government company, as the case may be, shall be entitled to receive up to the
specified date, to the exclusion of all other persons, any money due to the
proprietors, in relation to their undertaking which has vested in the State
Government, or the Corporation or in such Government company, and realised
after the appointed day, notwithstanding that the realisation pertains to a
period prior to the appointed day.
(2) The State Government or the Corporation, or such Government company,
as the case may be, may make a claim to the Commissioner with regard to every
payment made by it after the appointed day, for discharging any liability of the
proprietors, not being any liability specified in sub-section ( 2) of section 5, in
relation to any period prior to the appointed day ; and every such claim shall
have priority, in accordance with the priorities attaching, under this Act, to the
matter in relation to which such liability has been discharged by the State
Government, or the Corporation, or such Government company.
(3) Save as otherwise provided in this Act, the liabilities of the proprietors
in respect of any transaction prior to the appointed day, which have not been
discharged on or before the specified date, shall be the liabilities of
the proprietors.
Appointment
of Commissi-
oner of
Payments.
Payment by
State
Government
to
Commissioner.
Certain
powers of
State
Government
or
Corporation
or new
Government
company.
(G.C.P.) H 791—3 (2542-9-2012)
1 0
17. Every person having a claim against the proprietors with regard to any of
the matters specified in the Schedule pertaining to the undertaking, shall prefer
such claim before the Commissioner within thirty 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 thirty days, he may entertain the claim within a further period of thirty days
but not thereafter.
18. The claims arising out of the matters specified in the Schedule 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;
(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 a surplus is left after meeting
all the liabilities specified in the immediately higher category.
19. (1) On receipt of the claims made under section 17, the Commissioner
shall arrange the claims in the order of priorities specified in the Schedule 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 the liabilities
specified in any lower category, he shall not be required to examine the claims
in respect of such lower category.
20. (1) After examining the claims with reference to the priorities set out in
the Schedule, the Commissioner shall fix a date on or before which every
claimant shall file the proof of his claim.
(2) Not less than fourteen day’s notice of the date fixed shall be given by
advertisement in one issue of such daily newspaper in the English language, one
issue of such daily newspaper in the Marathi language and in one issue of such
daily newspaper in such other 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 period specified in the
advertisement.
(3) Every claimant who fails to file the proof of his claim within the period
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 proprietors an opportunity of refuting the
claims and after giving the claimant a reasonable opportunity of being heard,
admit or reject, by order in writing, 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 may hold his sittings 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) the summoning and enforcing the attendance of any witness and
examining him on oath ;
(b) the discovery and production of any document or other material object
producible as evidence ;
Claims to be
made to
Commissioner.
Priority of
claims.
Examination
of claims.
Admission or
rejection of
claims.
V of
1908.
1 1
(c) the reception of evidence on affidavits ;
(d) the issuing of any commission for the examination of witnesses.
 (6) 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, 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 Criminal Procedure,
1973.
(7) A claimant, who is dissatisfied with the decision of the Commissioner,
may prefer an appeal against such decision to the principal civil court of original
jurisdiction within the local limits of whose jurisdiction the registered office of
the proprietors is situated :
Provided that, where a person who is a Judge of a High Court is appointed
to be the Commissioner, such appeal shall lie to the High Court of Bombay and
such appeal shall be heard and disposed of by not less than two Judges of that
High Court.
21. 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 of the proprietors in respect
of such claim shall stand discharged.
22. (1) If, out of the monies paid to him in relation to the undertaking, there
is a balance left   after meeting the liabilities as specified in the Schedule, the
Commissioner shall disburse such balance to the proprietors.
(2) Where the possession of any machinery, equipment or other property has
vested in the State Government, or Corporation, or a new Government company,
under this Act, but such machinery, equipment or other property does not belong
to the proprietors, it shall be lawful for the State Government or the Corporation
or such Government company to continue to possess such machinery or equipment
or other property on the same terms and conditions under which they were
possessed by the proprietors immediately before the appointed day.
23. Any money paid to the Commissioner which remains undisbursed or
unclaimed on the date immediately preceding the date on which the office of the
Commissioner is finally wound up, shall be transferred by the Commissioner,
before his office is finally wound up, 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 had not been made, and the order, if any, for payment
of the claim, being treated as an order for the refund of revenue.
CHAPTER VII
MISCELLANEOUS
24. 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 other authority.
XLV
of
1860.
II of
1974.
Disburse-
ment of
money by
Commissioner
to claimants.
Disburse-
ment of
amounts to
proprietors.
Act to have
overriding
effect.
Undisbursed
or unclaimed
amount to be
desposited
with general
revenue
account.
H 791—3a
1 2
25. Every contract entered into by the proprietors in relation to their
undertaking, which has vested in the State Government under section 3, 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 appointed day,
cease to have effect unless such contract is, before the expiry of that period,
ratified, in writing by the State Government, or the Corporation, or a new
Government Company, in which such undertaking has been vested under this
Act, and in ratifying such contract, the State Government, or the Corporation,
or such Government company may make such alteration or modification therein
as it may think fit :
Provided that, the State Government, or the Corporation, or such Government
company shall not omit to ratify a contract and shall not make any alteration
or modification in a contract,—
(a) 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 State
Government, or the Corporation or such Government company; and
(b) except after giving 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.
26. (1) No suit, prosecution or other legal proceeding shall lie against the
State Government , or the Corporation, or a new Government company or any
officer or other employee of that Government, or the Corporation or such
Government company, or other person authorised by the State Government, or
the Corporation, or such Government company for anything which is in good
faith done or intended to be done under this Act.
(2) No suit or other legal proceeding shall lie against the State Government
or the Corporation, or such Government Company, or any officer or other employee
of that Government, or the Corporation, or such Government Company or other
person authorised by the State Government, or the Corporation, or such
Government Company for any damage caused or likely to be caused by anything
which is in good faith done or intended to be done under this Act.
27. (1) The State Government may, by notification in the Official Gazette,
direct that all or any of the powers exercisable by it under this Act, other than
the powers conferred by this section, section 30 and section 31, may also be
exercised by such 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 State Government.
28. Any person who,—
(a) having in his possession, custody or control any property forming part
of the undertaking, wrongfully withholds such property from the State
Government, or the Corporation or a new Government company; or
(b) wrongfully obtains possession of, or retains, any property forming part
of the undertaking; or
(c) wilfully withholds or fails to furnish to the State Government, or the
Corporation, or new Government company, as the case may be, or any person
or body of persons specified by that Government, or the Corporation or such
Government company, any document relating to the undertaking, which may
be in his possession, custody or control; or
Contracts to
cease to have
effect unless
ratified by
State
Government
or
Corporation
or new
Government
Company.
Protection of
action taken
in good faith.
Delegation of
powers.
Penalities.
1 3
(d) fails to deliver to the State Government, or the Corporation, or new
Government company, as the case may be, or to any person or body of persons
specified by that Government, or the Corporation, or such Government company,
any assets, books of account, registers or other documents in his possession,
custody or control relating to the undertaking; or
(e) wrongfully removes or destroys any property forming part of the
undertaking; or
(f) wrongfully prefers any claim under this Act which he knows or has
reasonable cuase to believe to be false or grossly inaccurate,
shall, on conviction, be punished with imprisonment for a term which may
extend to two years, or with fine which may extend to ten thousand rupees, or
with both.
29. (1) Where an offence under this Act has been committed by a company,
every person, who, at the time when 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 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 be proceeded against
and punished accordingly.
Explanation.—For the purposes of this section,—
 (a) “ company ” means any body corporate, and includes a fi

Excerpt shown. Open the full act in Lexace.

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