The India Belting And Cotton Mills Limited ( Acquisition And Transfer Of Undertakings ) Act, 1992

GOVERNMENT OF WEST BENGAL 
LAW DEPARTMENT 
Legislative 
West Bengal Act XXXI of 1992 
THE INDIA BELTING AND COTTON MILLS 
LIMITED (ACQUISITION AND TRANSFER 
OF UNDERTAKINGS) ACT, 1992. 
[Passed by the West Bengal Legislature.] 
[Assent of the President of India was first published in the 
Calcutta Gazette, Extraordinary, of the 11th October, 1993.] 
[11th October, 1993.] 
An Act to provide for the acquisition and transfer, in the public interest, of 
the undertakings of the India Belting and Cotton Mills Limited, and 
for matters connected therewith or incidental thereto. 
WHEREAS the India Belting and Cotton Mills Limited had been engaged 
in the manufacture of hair belting, cotton conveyors and hose pipes; 
AND WHEREAS the management of the undertakings of the India Belting 
and Cotton Mills Limited had been conducted in a manner highly detrimental 
to the public interest; 
AND WHEREAS the management of the undertakings of the India Belting 
and Cotton Mills Limited was taken over by the Central Government under 
65 oft951. 	 section 18AA of the Industries (Development and Regulation) Act, 1951, 
on and from the 6th day of September, 1974; 
AND WHEREAS the period of take-over of the management of the 
Company expired on the 5th day of September, 1991; 
AND WHEREAS for the purpose of reconstructing and rehabilitating the 
undertakings of the India Belting and Cotton Mills Limited so as to 
subserve the interest of the general public by diversion of the basic 
production to such new articles of production as shall ensure the commercial 
viability of the Company, it is necessary to acquire the undertakings of the 
Company; 
It is hereby enacted in the Forty-third Year of the Republic of India, by 
the Legislature of West Bengal, as follows:— 
CHAPTER I 
Preliminary 
1. (1) This Act may be called the India Belting and Cotton Mills Short tide 
Limited (Acquisition and Transfer of Undertakings) Act, 1992. 	 and 
commence- 
(2) It shall be deemed to have come into force on the 16th day of ment. 
November, 1992. 
225 
The India Belting and Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1992. 
[West Ben. Act 
(Chapter L.—Preliminary.—Section 2.—Chapter IL—Acquisition 
and Transfer of the undertakings of the Company.—Sections 3, 4.) 
Definitions. 
Transfer to, 
and vesting 
in, State 
Government 
of the under-
takings of the 
Company. 
General 
effect of 
vesting. 
2. In this Act, unless the context otherwise requires,— 
(a) "appointed day" means the date on which this Act comes 
into force; 
(b) "Commissioner" means the Commissioner of Payments 
appointed under section 15; 
(c) "Company" means the India Belting and Cotton Mills 
Limited, being a company as defined in the Companies Act, 1 of 1956. 
1956, and having its registered office at 15, Satish Chandra 
Ghosh Lane, Serampore, Hooghly; 
(d) "date of taking over of management of the undertakings of 
the Company" means the 6th day of September, 1974; 
(e) "existing Government company" means a Government 
company which is carrying on business on the appointed 
day; 
(0 "new Government company" means a Government company 
formed and registered on or after the appointed day; 
(g) "notification" means a notification published in the Official 
Gazette; 
(h) "prescribed" means prescribed by rules made under this Act; 
(i) "specified date" means such date as the State Government 
may, for the purpose of any of the provisions of this Act, by 
notification, specify, and different dates may be specified for 
different provisions of this Act; 
(j) words and expressions used herein and not defined, but 
defined in the Companies Act, 1956, have the meanings 
respectively assigned to them in that Act. 
CHAPTER II • 
Acquisition and Transfer of the undertakings 
of the Company 
3. On the appointed day, the undertakings of the Company, and the 
right, title and interest of the Company in relation to its undertakings, stiall, 
by virtue of this Act, stand transferred to, and vest in, the State Government. 
4. (1) The undertakings of the Company shall be deemed to include 
all assets, rights, leaseholds, powers, authorities and privileges, and all 
property, movable and immovable, including lands, buildings, offices, 
factories, workshops, stores, instruments, plants, machinery and equipment, 
installations, laboratories, office furniture, stationery and equipment, 
vehicles, patents, trade marks, cash balances, cash in hand, reserve funds, 
instruments, book debts and all other rights and interests in, or arising out 
of, such property as were immediately before the appointed day in the 
226 
The India Belting and Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1992. 
XXXI of 1992.1 
(Chapter IL—Acquisition and Transfer of the undertakings 
of the Company—Section 4.) 
ownership, possession, power or control of the Company, whether within 
or outside India, and all books of account, registers and all other documents 
of whatever nature relating thereto. 
(2) All properties and assets 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 or other authority restricting the use of such 
properties or assets in any manner or appointing any receiver in respect of 
the whole or any part of such properties or assets 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 interests, payment 
of the mortgage money or other dues, in whole or in part, out of the amount 
of compensation determined under section 8, and also out of the amount 
determined under section 9, but, no such mortgage, charge, lien or other 
interests shall be enforceable against any property which has vested in the 
State Government. 
(5) Any licence or other instrument granted to the Company in 
relation to any undertaking which has vested in the State Government 
under section 3 at any time before the appointed day and in force immediately 
before the appointed day shall continue to be in force on and after such day 
in accordance with its tenor in relation to and for the purpose of such 
undertaking, and, on and from the date of vesting of such undertaking, 
under section 6, in an existing Government company, or under seciton 7, 
in a new Government company, the existing or the 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 to such existing or new Government company and such existing 
or new Government company shall hold it for the remainder of the period 
for which the Company would have held it under the terms thereof. 
(6) If, on the appointed day, any suit, appeal or other proceeding of 
whatever nature, in relation to any property or asset which has vested in the 
State Government under section 3, instituted or preferred by or against the 
Company, is pending, the same shall not abate, be discontinued or be, in 
any way, prejudicially affected by reason of the transfer of the undertakings 
of the Company or of anything contained in this Act, but the suit, appeal 
227 
The India Belting and Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1992. 
[West Ben. Act 
(Chapter IL—Acquisition and Transfer of the undertakings 
of the Company—Section 5.) 
or other proceeding may be continued, prosecuted or enforced by or 
against the State Government or, where the undertakings of the Company 
are directed to vest, under section 6, in an existing Government company, 
or under section 7, in a new Government company, by or against such 
Government company. 
Central 
Government 
or State 
Government 
or existing 
or new 
Government 
company not 
to be liable 
for certain 
prior 
liabilities. 
5. (1) Every liability, other than the liability specified in sub-section 
(2), of the Company in respect of any period prior to the appointed day shall 
be the liability of the Company and shall be enforceable against it and not 
against the Central Government or the State Government or, where the 
undertakings of the Company are directed to vest, under section 6, in an 
existing Government company, or under section 7, in a new Government 
company, against such Government company. 
(2) Any liability arising in respect of,— 
(a) loans advanced by the Central Government or the State 
Government, or both, to the Company (together with interest 
due thereon), on or after the date of taking over of management 
of the undertakings of the Company, 
(b) loans advanced by a bank to the Company (together with 
interest due thereon) on or after the date of taking over of 
management of the undertakings of the Company, 
(c) loans advanced by the Industrial Reconstruction Bank of 
India Limited to the Company (together with interest due 
thereon) on or after the date of taking over of management 
of the undertakings of the Company, 
(d) wages, salaries and other dues of employees of the Company 
and dues on account of any deductions made from wages and 
salaries and other dues of such employees relating to any 
period commencing on and from the date of taking over of 
management of the undertakings of the Company, or 
(e) any debt incurred by the Company during any period 
commencing on and from the date of taking over of manage- 
ment of the undertakings of the Company, not being a debt 
falling under clause (a), clause (b), clause (c) or clause (d), 
shall, on and from the appointed day, be the liability of the State Government 
or the Government company as aforesaid and shall be discharged by the 
State Government or the existing Government company or the new 
Government company as aforesaid as and when repayment of such loans 
becomes due or such wages, salaries and other dues or debt become due 
and payable. 
228 
The India Belting and Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1992. 
XXXI of 1992.] 
(Chapter IL—Acquisition and Transfer of the undertakings 
of the Company.—Section 6.) 
(3) For the removal of doubts, it is hereby declared that,— 
(a) save as otherwise expressly provided in this Act, no liability 
of the Company in relation to its undertakings in respect of 
any period prior to the appointed day shall be enforceable 
against the Central Government or the State Government or, 
where the undertakings of the Company are directed to vest, 
under section 6, in an existing Government company, or 
under section 7, in a new Government company, against 
such Government company; 
(b) no award, decree or order of any court, tribunal or other 
authority in relation to the undertakings of the Company 
passed on or after the appointed day, in respect of any matter, 
claim or dispute, which arose before the appointed day shall 
be enforceable against the Central Government or the State 
Government or, where the undertakings of the Company are 
directed to vest, under section 6, in an existing Government 
company, or under section 7, in a new Government company, 
against such Government company; 
(c) no liability incurred by the Company before the appointed 
day for the contravention of any provision of any law for the 
time being in force shall be enforceable against the Central - 
Government or the State Government or, where the 
undertakings of the Company are directed to vest, under 
section 6, in an existing Government company, or under 
section 7, in a new Government company, against such 
Government company. 
6. (1) Notwithstanding anything contained in sections 3 and 4, and 
subject to the provisions of section 7, the State Government may, if it is 
satisfied that an existing Government company is willing to comply, or has 
complied, with such terms and conditions as that Government may think 
fit to impose, direct by notification, that the undertakings of the Company, 
and the right, title and interest of the Company in relation to its undertakings 
which have vested in the State Government under section 3, shall, instead 
of continuing to vest in the State Government, vest in that existing 
Government company either on the date of publication of the notification 
or on such earlier or later date (not being a date earlier than the appointed 
day) as may be specified in the notification. 
(2) Where the right, title and interest of the Company in relation to its 
undertakings vestundersub-section (1)in an existing Government company, 
that Government company shall, on and from the date of such vesting, be 
deemed to have become the owner in relation to such undertakings and the 
rights and liabilities of the State Government in relation to such undertakings 
shall, on and from the date of such vesting, be deemed to have become the 
rights and liabilities, respectively, of that existing Government company. 
Power of 
State 
Government 
to direct 
vesting of 
the 
undertakings 
of the 
Company in 
an existing 
Government 
company. 
229 
The India Belting and Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1992. 
[West Ben. Act 
(Chapter IL—Acquisition and Transfer of the undertakings 
of the Company—Section 7.—Chapter HL—Payment of amounts.—
Sections 8, 9.) 
Power of 
State 
Government 
to direct 
vesting of 
the 
undertakings 
of the 
Company in 
a new 
Government 
company. 
Payment of 
amount. 
Payment of 
further 
amount. 
7. (1) Notwithstanding anything contained in sections 3, 4 and 6, the 
State Government may, if it is satisfied that a new Government company 
is willing to comply, or has complied, with such terms and conditions as 
that Government may think fit to impose, direct, by notification, that the 
undertakings of the Company, and the right, title and interest of the 
Company in relation to its undertakings which have vested in the State 
Government under section 3, shall, instead of continuing to vest in the 
State Government, vest in that new GOvernment company either on the 
date of publication of the notification or on such earlier or later date (not 
being a date earlier than the date of registration of the new Government 
company) as may be specified in the notification. 
(2) Where the right, title and interest of the Company in relation to its 
undertakings vest under sub-section (1) in a new Government company, 
that new Government company shall, on and from the date of such vesting, 
be deemed to have become the owner in relation to such undertakings and 
the rights and liabilities of the State Government in relation to such 
undertakings shall, on and from the date of such vesting, be deemed to have 
become the rights and liabilities, respectively, of that new Government 
company. 
CHAPTER III 
Payment of amounts 
8. For the transfer to, and vesting in, the State Government, under 
section 3, of the undertakings of the Company and the right, title and 
interest of the Company in relation to its undertakings, there shall be given 
by the State Government to the Company in the manner specified in 
Chapter VI an amount of rupees twelve lakhs and five thousand. 
9. (1) For the deprivation of the Company of the management of its 
undertakings, there shall be given to the Company by the State Government 
an amount of rupees one thousand one hundred and seventy-two. 
(2) The amount specified in section 8 and the amount specified.in sub-
section (1) of this section 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 amounts 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 Company in addition to the amount specified in 
section 8. 
(4) The amounts payable under section 8 and sub-sections (1) and (2) 
of this section shall be payable in four equal annual instalments. 
(5) For the removal of doubts, it is hereby declared that the liabilities 
of the Company in relation to its undertakings which have vested in the 
State Government under section 3 shall be discharged from the amount 
specified in section 8, and also from the amount specified in sub-
section (1) and the amount determined under sub-section (2) of this 
section, in accordance with the rights and interests of the creditors of the 
Company. 
230 
The India Belting and Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1992. 
XXXI of 19921 
(Chapter IV.—Management, etc. of the undertakings of the 
Company.—Sections 10, 11.) 
CHAPTER IV 
Management, etc. of the undertakings of the Company 
10. (1) The general superintendence, direction, control and 
management of the affairs and business of the undertakings of the 
Company, the right, title and interest in relation to which have vested 
in the State Government under section 3, shall,— 
(a) where a direction has been given by the State Government 
under sub-section (1) of section 6, vest, on and from the 
date specified in such direction, in the existing Government 
company specified therein; or 
(b) where a direction has been given by the State Government 
under sub-section (1) of section 7, vest, on and from the 
date specified in such direction, in the new Government 
company specified therein; or 
where no direction has been given under clause (a) or 
clause (b), vest in one or more Custodians appointed by 
the State Government under sub-section (2), 
and thereupon the existing, or new, Government company so specified 
or the Custodian or Custodians so appointed, 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 Company is authorised to exercise 
and do in relation to its undertakings. 
(2) The State Government may appoint one or more individuals 
or a Government company as the Custodian or Custodians of the 
undertakings of the Company in relation to which no direction has 
been given by it under sub-section (I) of section 6 or sub-section (1) 
of section 7. 
(3) The Custodian or Custodians so appointed shall receive from the 
funds of the undertakings of the Company such remuneration as the State 
Government may fix and hold office during the pleasure of the State 
Government. 
11. (1) On the vesting of the management of the undertakings of 
the Company in an existing, or new, Government company or on the 
appointment of a Custodian or Custodians, all persons in charge of 
the management of the undertakings of the Company immediately 
before such vesting or appointment shall be bound to deliver to such 
Government company, or Custodian or Custodians, as the case may be, 
all assets, books of account, registers and other documents in their 
custody relating to the undertakings of such company. 
(c) 
Manage-
ment, etc. of 
the 
undertakings 
of the 
Company. 
Duty of 
persons in 
charge of 
management 
of the 
undertakings 
of the 
Company to 
deliver all 
assets etc. 
231 
The India Belting and Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1992. 
[West Ben. Act 
Accounts 
and audit. 
(Chapter IV—Management, etc. of the undertakings of the 
Company.—Section 12.) 
(2) The State Government may issue such directions as it may 
deem desirable in the circumstances of the case to the existing, or new, 
Government company or the Custodian or Custodians as to the powers 
and duties of such Government company or Custodian or Custodians, 
and such Government company or Custodian or Custodians 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 undertakings of the Company shall be conducted or in relation to 
any other matter arising in the course of such management. 
(3) Any person, who on the appointed day has in his possession or 
under his control any books, documents or other papers relating to the 
undertakings of the Company which have vested in the State Government 
or in any existing, or new, Government company and which belong to 
the Company, or would have so belonged if the undertakings of the 
Company had not vested in the State Government or the existing, or new, 
Government company, shall be liable to account for the said books, 
documents or other papers to the State Government or the existing, or 
new, Government company, as the case may be, and shall deliver them 
up to the State Government or the existing, or new, Government company 
or to such person or body of persons as the State Government or such 
Government company may specify in this behalf. 
(4) The State Government or the existing, or new, Government 
company may take, or cause to be taken, all necessary steps for securing 
possession of all undertakings which have vested in the State Government 
or the existing, or new, Government company under this Act. 
(5) The Company 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 undertakings which have vested in the State Government under 
section 3, and, for this purpose, the State Government or the existing, 
or new, Government company shall afford to the Company all reasonable 
facilities. 
12. The Custodian or Custodians of the undertakings of the 
Company shall maintain an account of the undertakings of the Company 
in such form and under such conditions as may be prescribed and the 
provisions of the Companies Act, 1956, shall apply to the audit of the I of r956. 
accounts so maintained as they apply to the audit of the accounts of a 
company. 
232 
The India Belting and Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1992. 
XXXI of 1992.] 
(Chapter V.—Provisions relating to the employees of the 
Company.—Sections 13, 14.) 
CHAPTER V 
Provisions relating to the employees of the Company 
13. (1) Every person who has been, immediately before the 
appointed day, employed in any of the undertakings of the Company 
shall become,— 
(a) on and from the appointed day, an employee of the State 
Government, and 
(b) where the undertakings of the Company are directed to 
vest, under sub-section (1) of section 6, in an existing 
Government company, or under sub-section (1) of 
section 7, 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 State Government or the 
existing, or new, 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 
or transfer and shall continue to do so unless and until his employment 
under the State Government or the existing, or new, Government company, 
as the case may be, is duly terminated or until his remuneration and other 
conditions of service are duly altered by the State Government or the 
existing, or new, Government company, as the case may be. 
14 of 1947. 
	
	 (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 undertakings 
of the Company to the State Government or the existing, or new, 
Government company, as the case may be, 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. 
14. (1) Where the Company has established a provident fund or 
superannuation, welfare or other fund for the benefit of the persons 
employed in the undertakings of the Company, the moneys relatable to 
the employees, whose services have become transferred by or under this 
Act to the State Government or the existing, or new, Government company, 
as the case may be, shall, out of the moneys standing, on the appointed 
day, to the credit of such provident fund or superannuation, welfare or 
other fund, stand transferred to, and vest in, the State Government or 
the existing, or new, Government company, as the case may be. 
Employment 
of certain 
employees 
to continue. 
Provident 
fund and 
other funds. 
233 
The India Belting and Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1992. 
[West Ben. Act 
(Chapter VL—Commissioner of Payments.—Sections 15, 16.) 
(2) The moneys which stand transferred under sub-section (1) to the 
State Government or the existing, or new, Government company, 
as the case may be, shall be dealt with by that Government or the 
existing, or new, Government company in such manner as may be 
prescribed. 
CHAPTER VI 
Commissioner of Payments 
Appoint-
ment of 
Commis-
sioner of 
Payments. 
Payment by 
State 
Government 
to 
Commis-
sioner. 
15. (1) The State Government shall, for the purpose of disbursing 
the amounts payable under sections 8 and 9, by notification, appoint a 
Commissioner 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. 
16. (1) Subject to the provisions of sub-section (4) of section 9 and 
sub-section (4) of this section, the State Government shall, within thirty 
days from the specified date, pay, in cash, to the Commissioner for 
payment to the Company,-- 
(a) the first instalment of the amount specified in section 8, 
and 
(b) the first instalment of the amounts payable to the Company 
under section 9: 
Provided that twelve months shall not intervene between 
the date of payment of one instalment and the date of 
payment of the next instalment. 
(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. 
234 
The India Belting and Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1992. 
XXXI of 1992.] 
(Chapter VI.—Commissioner of Payments.—Sections 17, 18.) 
(3) Interest accruing on the amounts standing to the credit of the 
deposit account referred to in sub-section (2) shall ensure to the said 
account. 
(4) Notwithstanding anything contained elsewhere in this Act,— 
(a) any amount payable to any bank or financial institution 
towards repayment of the principal amount of any secured 
loans advanced by such bank or financial institution to the 
Company before the date of taking over of management of 
the undertakings of the Company, shall be paid directly by 
the State Government to such bank or financial institution 
in accordance with such agreement, in writing, as the State 
Government and the bank or the financial institution may 
enter into with each other, and 
(b) the amount payable by the State Government directly to 
any bank or financial institution under clause (a) shall be 
deducted from the amounts payable to the Company under 
sections 8 and 9. 
17. (1) The State Government or the existing, or new, Government 
company, as the case may be, entitled to receive up to the specified date, 
to the exclusion of all other persons, any money due to the Company, 
in relation to its undertakings which have vested in the State Government 
or the existing, or new, Government company, as the case may be, 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 existing, or new, Government 
company, as the case may be, may make a claim to the Commissioner 
with reggrd to every payment made by it after the appointed day for 
discharging any liability of the Company, 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 
existing, or new, Government company, as the case may be. 
(3) Save as otherwise provided in this Act, the liabilities of the 
Company 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 Company. 
18. Every person having a claim against the Company 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 and not thereafter. 
Certain 
powers of 
State 
Government 
or existing, 
or new, 
Government 
company. 
Claims to be 
made to the 
Commis-
sioner. 
235 
The India Belting and Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1992. 
[West Ben. Act 
(Chapter VL—Commissioner of Payments.—Sections 19-21.) 
Priority of 
claims. 
Examination 
of claims. 
Admission 
or rejection 
of claims. 
19. The claims arising out of the matters specified in the Schedule 
shall have priorities in accordance with the following principles:— 
(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 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; 
(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. 
20. (1) On receipt of the claims made under section 18, 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 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 any claim in respect of such lower category. 
21. (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 days' notice of the date so fixed shall be 
given by advertisement in such issue of any daily newspaper in the 
English language and in such issue of daily newspaper in such 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 Company an opportunity of 
refuting the claim and after giving the claimant a reasonable opportunity 
of being heard, by order in writing, admit or reject the claim in whole 
or in part. 
236 
The India Belting and Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1992. 
XXXI of 1992.] 
(Chapter VL—Commissioner of Payments.—Sections 22, 23.) 
(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 
	
5 of 1908. 	 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:— 
(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; 
(c) the reception of evidence on affidavit; 
(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 
	
45 of 1860. 	 the Indian Penal Code and the Commissioner shall be deemed to be a 
	
2 of 1974. 	 civil court for the purpose 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 the decision to the principal 
civil court of original jurisdiction within the local limits of whose 
jurisdiction the registered office of the Company is situated: 
Provided that where a. person who is a Judge of a High Court is 
appointed to be the Commissioner, the appeal shall lie to the High Court 
at Calcutta and such appeal shall be heard and disposed of by not less 
than two Judges of the High Court. 
22. 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 
Company in respect of such claim shall stand discharged. 
23. (1) If, out of the moneys paid to him in relation to the undertakings 
of the Company, there is a balance left after meeting the liabilities in 
accordance with the priorities specified in the Schedule, the Commissioner 
shall disburse such balance to the Company. 
(2) Where any machinery, equipment or other property has vested 
under this Act in the State Government or the existing, or new, Government 
company, as the case may be, but such machinery, equipment or other 
property does not belong to the Company; it shall be lawful for the State 
Government or the existing, or new, Government company, as the case 
may be, to continue to possess such machinery, equipment or other 
property on the same terms and conditions under which they were 
possessed by the Company immediately before the appointed day. 
Disburse-
ment of 
money by 
Commis-
stoner to 
claimants. 
Disburse-
ment of 
amounts to 
the 
Company 
and 
possession 
of certain 
machinery, 
equipment, 
etc. 
237 
The India Belting and Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1992. 
[West Ben. Act 
(Chapter V1.—Commissioner of Payments.—Section 24.— 
Chapter VII. Miscellaneous.—Sections 25-27.) 
Undisbursed 
or unclaimed 
amount to be 
deposited to 
the general 
revenue 
account.- 
24. 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 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 persons entitled to such paymentand shall be dealt 
with as if such transfer had not been made, and the order, if any, for 
the payment of the claim shall be treated as an order for the refund of 
the revenue. 
CHAPTER VII 
Miscellaneous 
Act to have 
overriding 
effect. 
Assumption 
of liability. 
Contracts to 
cease to 
have effect 
unless 
ratified by 
the State 
Government 
or existing, 
or new, 
Government 
company. 
25. 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. 
26. (1) Where any liability of the Company arising out of any item 
specified in Category I of the Schedule is not discharged fully by the 
Commissioner out of the amounts 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 State Government may, by order, direct the Company to take 
over the liability assumed by the State Government under sub-section 
(1), and, on receipt of such direction, it shall be the duty of the Company 
to discharge such liability. 
27. Every contract entered into by the Company in relation to its 
undertakings 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 publication of this Act in the Official 
Gazette, cease to have effect unless such contract is, before the expiry 
of the said period, ratified in writing by the State Government, or, as 
the case may be, the existing, or new, Government company, and in 
ratifying such contract, the State Government or, as the case may be, 
the existing, or new, Government company may make such alterations 
or .modifications therein as it may think fit: 
238 
The India Belting and Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1992. 
XXXI of 1992.] 
(Chapter VIL—Miscellaneous.—Section 28.) 
Provided that the State Government or, as the case may be, the 
existing, or new, Government company.shall not omit to ratify a contract 
and shall not make any alteration or modification therein,— 
(a) unless it is satisfied that such contract is unduly onerous 
or has been entered into in bad faith or is detrimental to 
the interest of the State Government or, as the case may 
be, 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 its refusal to ratify the contract or 
for making any alteration or modification therein. 
28. Any person, who— 	 Penalties. 
(a) having in his possession, custody or control any property 
forming part of the undertakings of the Company wrongfully 
withholds such property from the State Government or the 
existing, on new, Government company, as the case may 
be, or any person or body of persons authorised by that 
Government or existing, or new, Government company; or 
(b) wrongfully obtains possession of, or retains, any property 
forming part of any undertaking of the Company or wilfully 
withholds or fails to furnish to the State Government or, 
as the case may be, the existing, or new, Government 
company or any person or body of persons authorised by 
that Government or Government company, any document 
relating to such undertaking which may be in his possession, 
custody or control or fails to deliver to the State Government 
or, as the case may be, the existing, or new, Government 
company or any person or body of persons authorised by 
that Government or existing, or new, Government company, 
any assets, books of account, registers or other documents 
in his possession, custody or control relating to the 
undertakings of the Company; or 
(c) wrongfully removes or destroys any property forming part 
of the undertakings of the Company or prefers any claim 
under this Act which he knows or has reason 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. 
239 
The India Belting and Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1992. 
[West Ben. Act 
(Chapter VIL—Miscellaneous.—Sections 29-32.) 
Offences by 
companies. 
Protection of 
action taken 
in good 
faith. 
Delegation 
of powers. 
Power to 
make rules. 
29. (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 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 firm 
or other association of individuals; and 
(b) "director", in relation to a firm, means a partner in the firm. 
30. No suit, prosecution or other legal proceeding shall lie against 
the State Government or any officer of that Government or the Custodian 
of the undertakings of the Company or the existing, or new, Government 
company or any officer or other person authorised by that Government 
or existing, or new, Government company for anything which is in good 
faith done or intended to be done under this Act. 
31. (1) The State Government may, by notification, direct that all 
or any of the powers exercisable by it under this Act, other than the 
power conferred by this section or section 32 or section 33, 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. 
32. (1) The State Government may, by notification, make rules for 
carrying out the provisions of this Act. 
240 
Power to 
remove 
difficulties. 
West Ben. 
Ord. III of 
1992. 
Repeal and 
saving. 3. (1) The India Belting and Cotton Mills Limited (Acquisition 
and Transfer of Undertakings) Ordinance, 1991, is hereby repealed. 
(2) Notwithstanding such repeal, anything done or any action taken 
under the Ordinance so repealed shall be deemed to have been done or 
taken under the corresponding provisions of this Act. 
The India Belting and Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1992. 
XXXI of 1992.] 
(Chapter VII—Miscellaneous.—Sections 33, 34.) 
(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 (3) of section 4 shall 
be given; 
(b) the form and the manner in which, and the conditions under 
which, the Custodian or Custodians shall maintain accounts 
as required by section 12; 
(c) the manner in which moneys in any provident fund or other 
fund referred to in section 14 shall be dealt with; 
(d) any o

Excerpt shown. Open the full act in Lexace.

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