section 5
Company to be liable for certain prior liabilities
The Bobbili and Seethanagaram (Acquisition and Transfer of Sugar Undertakings) Act, 1986General198625 sections
Statutory text
- (1) Every liability of the Company, other than the liabilities specified in sub-section (2), in respect of any period prior to the appointed day, and in relation to the sugar undertakings shall be the liability of the Company and shall be enforceable against it, and not against the Corporation notwithstanding that moneys were borrowed by the Company on the security of the sugar undertakings.
- (2) Any liability arising in respect of materials supplied to the sugar undertakings after the management of the sugar undertakings had been taken over by the Corporation shall, on and from the appointed day, be the liability of the Corporation and shall be discharged by that Corporation, as and when repayment for such supplies becomes due and payable.
- (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 the sugar undertakings, in respect of any period prior to the appointed day, shall be enforceable against the Corporation ;
- (b) no award, decree or order of any court tribunal or other authority in relation to the sugar undertakings, 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 Corporation;
- (c) no liability incurred by the Company before the appointed day for the contravention of any provision of law for the time being in force, shall be enforceable against the Corporation.
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