The BHASKAR TEXTILE MILLS (ACQUISITION AND TRANSFER) ACT, 1986

*THE BHASKAR TEXTILE MILLS (ACQUISITION
AND TRANSFER) ACT, 1986
Orissa Act 4 of 1986
[Received the assent of the President on the 7th March 1986, first published in an
Extraordinary issue of the Orissa Gazette, dated the 12th March 1986]
AN ACT TO PROVIDE FOR THE ACQUISITION AND TRANSFER OF THE
BHASKAR TEXTILE MILLS LIMITED, JHARSUGUDA AND THE RIGHT, TITLE,
INTEREST OF THE OWNERS IN RESPECT OF THE SAID MILLS WITH A
VIEW TO REOPENING AND REHABILITATING THE SAME SO AS
TO SUB SERVE THE INTEREST OF THE GENERAL PUBLIC BY
AUGMENTATION OF THE PRODUCTION AND DISTRIBUTION,
AT FAIR PRICE, OF DIFFERENT VARIETIES OF YARN AS
WELL AS TO PROTECT THE WORKMAN AGAINST
UNEMPLOYMENT, AND FOR MATTERS CONNECTED
THEREWITH OR INCIDENTAL THERETO
Be it enacted by the legislature of the State of Orissa in the Thirty-Seventh
Year of the Republic of India, as follows:"
CHAPTER I
PRELIMINARY
1.  1) This Act may be called the Bhaskar Textile Mills (Acquisition and
Transfer) Act, 1986.
(2) It shall be deemed to have come ,into force with effect from the 13th
day of August, 1985.
2. (1) In this Act, unless the context otherwise requires,"
(i) "appointed day" means the date on which this Act came into force;
(ii) "Banks" means:-
(a) a banking company within the meaning of the Banking
Regulation Act, 1949 or a corresponding hew bank constituted
under section 3 of the Banking Companies (Acquisition and
* Published vide Orissa Act 4 of 1986
The Odisha   Gazette
EXTRAORDINARY
PUBLISHED BY AUTHORITY
No. Date : 12th March 1986
Short title and
commencement.
Definitions.
10 of 1949
2
Transfer of undertakings) Act, 1970.
(b) any other bank being a scheduled bank as defined in clause
(e) of section 2 of the Reserve Bank of India Act, 1934.
(iii) "Commission" means the Commission of Assessment appointed
under sub-section (I) of section 13;
(iv) "Commissioner" means the Commissioner of Payments appointed
under sub-section (1) of section 15;
(v) "Corporation" means the Orisja State Textile Corporation Limited,
Cuttack formed and registered under the Companies Act, 1956;
(vi) "owner" means Bhaskar Textile Mills Limited, Jharsuguda in the
district of Sambalpur having its registered office at 2, Biplabi Trailokya
Maharaj Sarani, Calcutta and includes any agent or manager of
such owner, the lessee or occupier of toe said Mills or part thereof
and the receiver or liquidator, if any, appointed by any court of the
country;
(vii) "prescribed" means prescribed by rules made under this Act;
(viii) "specified date" means such date as the Slate Government may,
for the purpose" of this Act, by notification, specify and dif ferent
dates may be specified for different provisions of this Act;
(ix) "textile"' includes yarn made either wholly or partly of cotton, wool,
jute, synthetic and artificial (man-made) fibres;
(x) "textile company" means Bhaskar Textile Mills Limited, Jharsuguda
in the district of Sajnbalput having/its registered office at2, Biplabi
Trailokya Maharaj Sarani, Calcutta;
(xi) "textile, undertaking" means the Bhaskar Textile Mills located at
Jharsuguda in the district of Sanibalpur.
(2) Words and expressions used but not defined in this Act and defined in
the Industries (Development and Regulation) Act, 1951 shall have the meaning
respectively assigned to them in the Act.
(3) Words and expressions used but, not defined in this Actor in the
Industries (Development and Regulation) Act, 1951 but defined in the Companies
Act, 1956 shall have the meaning respectively-assigned to them in the Companies
Act, 1956.
CHAPTER II
ACQUISITION OF RIGHTS OF THE OWNER OF THE TEXTILE
UNDERTAKING
3.  (1) On the appointed day, the textile undertaking and the right, title and
interest of the owner in relation to the said textile undertaking shall stand transferred
to and shall vest absolutely in the State Government.
(2) The textile undertaking which stands vested in the State Government
Acquisition of lights of
the owner in respect of
the Textile Undertaking
5 of 1970
2 of 1934
1 of 1956
65 of 1956
1 of 1956
65 of 1956
3
by virtue of sub-section (I) shall immediately after it has so vested, stand
transferred to and vested in the Corporation.
4. (1) The 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 lands, buildings, workshops, stores,
instruments, machinery and equipment, cash balance, cash in hand, reserve
funds, investments and all other rights and interest in, or, arising out of, such
property, as were immediately before the appointed day in the ownership,
possession, power or control of the owner of the textile undertaking, whether
within or outside India, and all books of account, registers and all other documents
of whatever nature relating thereto.
(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, dischar
ged from any trust, obligation, mortgage, hypothecation, 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 licence or other instrument in relation to the textile undertaking
had been granted at any time before the appointed day to the owner by the
Central Government or a State Government or any other authority, the Corporation
shall, on and from such date, be deemed to be substituted in such licence or
other; instrument in place of the owner referred to therein as if such licence or
other instrument had been granted to the Corporation and shall hold such licence
or such other instru ment for the remainder of the period for which the owner
would, have held such licence or such other instrument:
(4) Every holder of mortgage or hypothecation of any property which has
vested under this Act in the State Government and every person holding any
charge, lieu 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 payments of such mortgage, hypothecation, charge, lien or
other interest.
(5) For removal of doubt it is hereby declared that the holder of mort gage
or hypothecation -property referred to in sub-section (2) or , any other person
holding any charge. Hen or other interest in, or in relation to any such property,
shall be entitled to claim in accordance with his rights and interests, payment of
the mortgaged or hypothecated money or other dues, in whole or in part, out of
the amount determined in relation to such property under section 7, but no such
mortagage hypothecation, charge, lien, or other interest shall be enforceable
against any property which has vested in the State Government.
5.  (i) Every liability of the owner of the textile undertaking in respect of any
period prior to the appointed day shall be the liability of such owner and shall be
enforceable against it and not against the State Government or the Corporation.
(2) For the removal of doubts, it is hereby declared that"
Effect of vesting.
Owner's
Liabilities.
4
(a) save as otherwise expressly provided in this section or in any other
section of this Act, no liability in relation to the textile undertaking in respect of
any period prior to the appointed day , shall be enforceable against the S tate
Government of the Corporation;
(b) no liability of the owner incurred before the appointed day , for the
contravention of any provision of law for the time being in force, shall be enforceable
against the' State Government or the Corporation.
6. An amount equal to the value of the assets of the textile undertaking
transferred to and vested in the Corporation under sub-section (2) of section 3
shall be deemed to be the contribution made by the State Government to the
Corporation to Corporation.
CHAPTER III
PAYMENT OF AMOUNT
7.  (1) For the transfer to, and vesting in, the State Government under sub-
section (1) 0f section 3 of the textile undertaking and the right, title and interest
of the owner in relation to such textile undertaking, there shall be given by the
State Government to the owner in cash the amount determined as specified in
Chapter V, in the manner specified in Chapter VI.
(2) Where any liability of the owner specified in the Schedule is discharged
by the State Government according to the order of the priorities mentioned in the
Schedule, the amount to be paid to the owner under sub-section (1) shall stand
reduced to that extent.
8. The Corporation shall be entitled to exercise the powers of general
superintendence, direction, control and management of the affairs and business
of the textile undertaking.
9.  On the vesting of the management of the textile undertaking in the
Corporation, persons in charge of the management of such textile undertaking
immediately assets, before such vesting, shall be bound to deliver to the
Corporation all assets, books of account, registers and other documents in their
custody relating to the textile under taking.
10.The Corporation shall maintain the accounts of the textile undertaking
in accordance with the provisions of the Companies Act, 1956,
CHAPTER IV
PROVISION RELATING TO EMPLOYEES OF THE TEXTILE
MILLS
11.  (1) Every person who is a workman within the meaning of the Industrial
Disputes Act, 1947 and has been immediately before the second day of October,
1982, employed in the textile undertakings, shall become on and from the
appointed day an employee of the Corporation, and shall hold office or as the
case may be service, in the Corporation with the same rights and privileges as to
State Government
contribution to
Corporation.
Payment of amount
to the owner
 Management of
the Textile
Undertaking
Duty to deliver
all assets
 Accounts
Employees to
continue
1 of 1956
14 of 1947
5
pension, gratuity and other matters as would have been admissible to him had
the fight in relation to the said textile undertaking not been transferred to, and
vested in, the Corporation and shall continue to do so unless and until his
employment in the Corporation is duly terminated or until his remuneration, terms
and conditions of employment are duly altered by the Corporation.
(2) Every person who is not a workman within the meaning of the Industrial
Disputes Act, 1947 and who has been, immediately before the second day of
October, 1982 employed in the said mills of the textile undertaking shall become,
on and from the appointed day, an employee of the Corporation with the same
right and privileges as to pension, gratuity and other matters as would have been
admissible to him had the right in relation to such textile undertaking not been
transferred to, and vested in, the Corporation and shall continue to do so unless
and until his employment in the Corporation is duly terminated or until his
remuneration, terms and conditions of employment &re duly altered by the
Corporation.
(3) Notwithstanding any tiling cont ained 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 textile undertaking to the 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.
12. (1) Where the owner of the textile undertaking has established a
Provident superannuation, welfare or other' fund for the benefit of the persons
employed in such textile undertaking, the moneys relatable to-the employees
whose services have been transferred by or under this Act to the 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 Corporation.
(2) The moneys which stand transferred under sub-section (1) to the Corpora
tion shall be dealt with by the Corporation in such manner as may be prescribed.
CHAPTER V
COMMISSION OF ASSESSMENT
13.  (1) For the purpose of determining the amount payable, to the owner
of the textile undert aking, the S tate Government within one month from the
appointed day shall, by notification in the Official Gazette, appoint any person or
persons having the qualification to become a Company Secretary or a Chartered
Accountant, to be the Commission of Assessment who shall exercise the powers
conferred, and perform the duties imposed on him by or under this Act.
(2) The State Government may appoint such other persons as it may think
fit to assist the Commission and thereupon the Commission may authorise one
or more 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.
Provident and
other Funds
Appointment of
Commission of
Assessment
14 of 1947
14 of 1947
6
(3) Any person authorised by the Commission to exercise any powers
may exercise those powers in the same manner and with the same effect as if
such powers have been conferred on that person by this Act.
(4) The salaries and allowances of the Commission and other persons
appointed under this section shall be defrayed out of the Consolidated Fund of
the State.
14. (1) The Commission shall, within two months from the date of notification
Commission, mentioned in sub-section (1) of section 13 assess on the basis of
book value of the assets which are in physical existence on the appointed day,
the amount payable to the. owner and submit his recommendation to Government
specifying the amount payable to the owner.
(2) The Commission shall have powers to call for all books of account,
registers and other documents relevant for the purpose of assessment of value of
assets from persons who are supposed to be in possession of the same on the
appointed day.
(3) In case, books of account, registers and other documents are not
available to the Commission within the time limit prescribed by him in this behalf,
it shall be open to him to collect relevant information, as far as possible, from
other sources for the purpose of assessment of value of assets.
(4) The Commission shall have the right to make physical verification of
assets on the spot and for this purpose, he shall have the power to enter into the
premises of the textile undertaking.
Explanation:- For the purpose of this section physical existence of assets
shall mean the physical existence of assets available within the premises of the
textile undertaking.
(5) The Commission shall have the power to regulate his own procedure in
all matters arising out of he 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 while trying a suit under the Code of Civil Procedure, 1908 in respect of the
following matters, namely:"
(a) the summoning and enforcing the attendance of any person from
any part of India and examining him on oath;
(b) requiting the discovery and production of any document or other
material object, produce able as evidence;
(c) receiving evidence on affidavits;
(d) the issuing of any commission for the examination of witnesses or
documents; and
(e) requisitioning any public record or copy thereof from any court or
office.
Duties and
powers of the
Commission
5 of 1947
7
CHAPTER VI
COMMISSIONER OF PAYMENTS
15.  (1) For the purpose of disbursing the amounts payable to the owner of
the textile undertaking in accordance with section 7, the State Government shall,
by payments notification in the Official Gazette, appoint a Commissioner of
Payments who shaft exercise the powers conferred and perform the duties imposed
on him by or under this Act.
(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 dif ferent persons may be authorised to exercise
different powers.
(3) Any person authorised by the Commissioner to exorcise any powers
may exercise these 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) Salaries and allowances of the Commissioner and other persons
appointed under this section shall be defrayed out of the Consolidated Fund of
the State.
16.  (1) The State Government shall, within thirty days from the date of
publication of the notification appointing the Commissioner, pay in cash to the
Commissioner, for payment to the owner of the textile undertaking an amount
equivalent to the amount determined by the Commission.
(2) A deposit account shall be opened by the State Government, in favour
of the Commissioner, in the Public Account of the State, and the amount paid to
the Commissioner under sub-section (1) shall be deposited by him to the credit
of the said deposit account in the Public Account of the State and thereafter the
said deposit account shall be operated by the Commissioner.
(3) Records shall be maintained by the Commissioner in relation to which
payments have been made to him under this Act.
(4) Interest accruing on the amount standing to the credit of the deposit
account referred to in sub-section (2) shall accrue to the benefit of the owner of
the textile undertaking.
17.  1[Every person having a claim against the owner of the textile undertaking
shall prefer such claim before the Commissioner within thirty days from the date
of publication of a notice issued by the Commissioner inviting such claims:]
Provided that if the Commissioner is satisfied that the claimant was
Appointment of
Commissioner of
Payments
Payment by the
State Government
to the
Commissioner.
Claim to be made
to the
Commissioner
1. Substituted by the Bhaskar Textile Mills (Acquisition and Transfer) Amendment and
Validation Act, 1990 (Orissa Act 18 of 1990) S. 2, came into force, w.e.f. the 12th March
1983
8
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 and so on;
(b) the claims specified in each category except category III shall rank
equally and be paid in full,, but if the amount is insufficient to meet
such claims in Kill, they shall abate in equal proportions and be
paid accordingly;
(c) the liabilities specified in category III shall be discharged subject to
the priorities specified in this section, in accordance with the terms
of the secured loan and the priority inter se, of such loans; and
(d) the question of payment of liability with regard to a matter specified
in a succeeding category shall arise if a surplus is left after meeting
all the liabilities specified in the immediately preceding category.
19. (1) On receipt of the claims under section 17, the Commissioner shall
arrange of claims in the order of priority specified in the 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 p aid to turn under this Act is not suf ficient to meet the liabilities
specified in any succeeding category, he shall not be required to examine the
liabilities, in respect of such succeeding category.
20.  (1) After examining the claims with reference to priority set out in the
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
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 the daily newspaper in the English language
and one issue of the 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 the 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 investigations, as may in his opinion
be necessary and after giving the owner of the textile undertaking an opportunity
of refuting the claim and after giving the claimant a reasonable opportunity of
Priority of claims
Examination of
claims.
Admission or
rejection of claims
9
being heard, in writing, admit or reject the claim in whole or in part.
(5) The Commissioner shall have the same powers as are conferred on
the Commission in sub-section (5) of section 14 in the matter of regulating his
own procedure and making any investigation for discharge of the functions conferred
on him.
(6) An investigation before the Commissioner shall be deemed to be the
judicial proceedings 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 that decision to the principal civil court of original
jurisdiction within the local limits of whose jurisdiction the textile undertaking is
situated:
Provided that where a person who is a judge of the , High Court is appointed
to be the Commissioner, such appeal shall lie to the High Court for the State and
it shall be heard and disposed of by not less than two other judges of the High
Court.
21.  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.
22.  (1) If out of the money paid to him in relation to the textile undertaking
there is a balance left after meeting the liabilities as specified in the Schedule,
the Commissioner shall disburse such balance to the owner of the textile under
taking.
(2) Before making any payment to the owner of the 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 the whole or
any part of the amount referred to in section 9, the Commissioner shall refer the
matter to the Court, and make the disbursement in accordance with the decision
of the Court.
(3) Where any machinery, equipment or other property, in the textile under
taking has vested in the Corporation, but such machinery, equipment or other
property does not belong to the owner of such textile undertaking, the amount
determined under sub-section (1) of section 14 shall, on a reference made to the
Court by the Commissioner, be apportioned by the Court between the owners of
such machinery, equipment of 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 the textile undertaking,
means the principal civil court of original jurisdiction within the local limits of
whose jurisdiction the textile undertaking is situated.
Disbursement of
money by the
Commissioner to
claimants
Disbursement of
amount to the
owner of the
Textile
Undertaking
46 of 1960
2 of 1973
10
23. - 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 money and
shall be dealt with as if such transfer had not been made, 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 authority.
25. (1) Every contract entered into by the owner or occupier of the 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
such date, cease to have effect unless such contract is, before the expiry of that
period, ratified, in writing by the Corporation and in ratifying such contract the
Corporation may, with the previous approval of the State Government, make such
alteration of modification therein as it may think fit:
Provided that the Corporation shall not omit to ratify a contract, and shall
not make any alteration or modification in a contract, unless it is satisfied that
such contract is undully onorous or has been entered into in bad faith or is
deterimental to the interest of the textile undertaking.
(2) The 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.
26. Any person who,-
(a) having in his possession, custody or control any property forming
part of the textile undertaking, wrongfully withholds such property
from the S tate Government or the Corporation or any person
authorised by the Government or the Corporation, as the case may
be, in this behalf, or
(b) wrongfully obtains possession of, or retains, any property forming
part of the textile undertaking or wilfully withholds or fails to furnish
to State Government the Corporation or any person specified by the
Governm ent or the Corporation, as the case may be, any document
relating to such textile undertaking which may be in his possession,
Undisbursed or unclaimed
amount to be deposited to
the General Revenue
account
Act to over ride all
other enactments
Contract to cease
to have effect
unless ratified by
the Corporation
Penalties
11
custody or control or fails to deliver to the Corporation or any person
specified by that Corporation any assets, books of account, registers
or other documents in Ms custody relating to the textile undertaking,
or
(c) wrongfully removes or destroys any property forming part of the
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
thousand rupees, or with both.
27.  (1) Whereas 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 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 the Companies Act, 1956 has been committed by the textile 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 said textile company, such director, manager, secretary or
other officer, as the case may be, shall be deemed to be guilty of that offence
and shall be liable to be proceeded against and punished accordingly.
28.  No suit, prosecution or other legal proceeding shall lie against the
State Government, or any officer of the State Government, or the Corporation or
any officer or other person authorised by the Corporation for any thing which is in
good faith done or intended to be done under this Act.
29. No proceeding for the winding up of the textile company, the right, title
and interest in relation to the textile undertaking which have vested in the
Corporation under this Act or, for the appointment of a receiver in respect of the
business of such undertaking, shall lie or be proceeded within any civil court
except with the consent of the State Government.
30. Delegation of powers.:- (1) The S tate Government may , by
notification, direct that all or any of the powers exercisable by it under this Act,
other than the power under section 31 may also be exercised by any person or
persons as may be specified by them by notification.
(2) whenever any delegation of power is made under sub-section (1), the
person to whom such power has been deligated shall act under the direction,
control and supervision1 of the State Government.
Offences by
companies
Protection of action
taken in good faith
Textile
Underrating not
to be wound up
by the Court
Delegation of
powers
2 of 1956
12
31.  (1) The State Government may after, previous publication by notification
make rules to carry out any of the purposes 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 4 section shall be given;
(b) the manner in which moneys in any provident fund or other fund
deferred to in section 14 shall be dealt with;
(c) any other matter which is, required to be, or may be prescribed.
32. If any difficulty arises in giving effect to the provisions of this Act, the
State Government may, by order not inconsistent with the provisions of this Act,
remove the difficulty:
Provided that no such order shall be made after the expiry of a period of
two years from the appointed day.
33.  It is hereby declared that this Act, is for giving effect to the policy of
the State towards securing the principles specified in clause (A) of article 39 of
the State Constitution.
Explanation- In this section "State" has the same meaning as in Article 12
of the Constitution.
34. (1) The Bhaskar Textile Mills (Acquisition and Transfer) Ordinance,
1985 is hereby repealed.
(2) Notwithstanding such repeal any thing done, any action taken or
notification order, instruction or direction issued under the ordinance so repealed,
shall be deemed to have been done, taken or issued under the corresponding
provisions of this Act.
THE SCHEDULE
(See sections 18, 19 and 20)
Order of priorities for the discharge of liabilities in respect of the textile
unuei taking.
CATEGORY I
All dues including arrear salaries, wages, leave and other dues and gratuity
of persons employed in the textile undertaking relating to the period prior to the
appointed day.
CATEGORY II
Loans inclusive of interest advanced by the Central and the S tate
Government and any bank prior to the appointed day.
CATEGORY III
Power to
 make rules
Power to
remove
difficulties.:
Declaration as
to the policy of
the State
 Repeal and
savings
Orissa
Ordinance 5 of
1985
13
Dues of secured creditors including banks and institutions pertaining to
the period prior to the appointed day.
CATEGORY IV
(i) Statutory dues of Government pertaining to the period prior to the
appointed day.
(ii) Sundry creditors of the period prior to the appointed day.
(iii) Other liabilities.

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