Owner to be liable for certain prior liabilities

Owner to be liable for certain prior liabilities.—

1. (1) Every liability, other than the liability specified in sub-section (2), of the owner of a textile company in respect of any period prior to the appointed day, shall be the liability of such owner and shall be enforceable against him and not against the State Government or the Textile Corporation.
2. (2) Any liability arising in respect of—
   • (a) loans advanced by the Central Government, or a State Government, or both, to the textile company (together with interest due thereon),
   • (b) wages, salaries and other dues of employees of the textile company,
   • (c) credit availed of by the textile company for purposes of trade or manufacturing operations,
   • (d) any other dues of employees of the textile company or any other dues, shall, on and from the appointed day, be the liability of the State Government and shall be discharged by the State Government or the Textile Corporation as, and when, repayment of such loans becomes due or as, and when, such wages, salaries, or other dues become due and payable: Provided that the liability in relation to the Provident Fund, Pension Fund, Gratuity or any other fund meant for the welfare of the employees shall be discharged by the State Government or the Textile Corporation only to the extent of the amount which the State Government or the Textile Corporation had considered as the liability of the owner of the textile company and which the State Government or the Textile Corporation has taken over.