Power of State Government to make certain declarations

Power of State Government to make certain declarations.— The State Government may, if it is satisfied, after such inquiry as it may think fit and after consideration of the report of the liquidator, that it is necessary so to do for the purpose of the management of a sick textile undertaking, declare by notification in the Official Gazette, that—

1. (a) the operation of all or any of the contracts, assurances of property, agreements, settlements, awards, standing orders or other instruments in force (to which such sick textile undertaking or the company owning such undertaking is a party or which may be applicable to such sick textile undertaking or company) immediately before the appointed day shall be suspended or shall be enforceable by or against the State Government or the company, as the case may be;
2. (b) all or any of the rights, privileges, obligations and liabilities accruing or arising thereunder before the appointed day shall remain suspended or shall be enforceable with such modifications and in such manner as may be specified in such notification: Provided that no such declaration shall be made without giving an opportunity of being heard to the parties to the contract, assurance of property, agreement, settlement, award or other instrument in force.