The Plyboard Industries (Acquisition of Shares and of the Industrial Undertaking) Act, 1987

Short title, extent and commencement.--(1) This Act may be called the Plyboard Industries (Acquisition of Shares and of the Industrial Undertaking) Act, 1987.

1. (2) It extends to whole of the State of Jammu and Kashmir.
2. (3) It shall be deemed to have come into force on 26th day of December, 1985.

Definitions.-- In this Act, unless the context otherwise requires,--

1. (a) "appointed day" means the date of commencement of this Act.
2. (b) "Government" means the Government
3. (c) "Industrial Undertaking" means M/S Plyboard Industries Limited, Pampore, Kashmir;
4. (d) "Notification" means notification published in the Government Gazette;
5. (e) "Prescribed" means prescribed.

Transfer and vesting in the Government of shares of the industrial undertaking.--(1) On the appointed day, all shares in the capital of the industrial undertaking shall by virtue of this Act stand transferred to and vested in the Government.

1. (2) All the shares which have vested in the Government under sub-section
2. (1) shall by force of such vesting be freed and discharged of all trusts, liabilities, obligations, mortgages, charges, liens and other encumbrances affecting them.
3. (3) Any dividend payable by Messrs Plyboard Industries Limited, Pampore in respect of any period beginning from appointed day, shall be payable to the Government.

Management of the industrial undertaking the ownership, possession, power of control of the said industrial undertaking and all books of accounts, registers records and all other documents of whatever nature relating thereto and shall also be deemed to include all borrowings, liabilities (including the liability for the payment of any pension and other pensionary benefits to the person employed in the said industrial undertaking) and obligations of whatever kind subsisting on the appointed date: Provided that remittances within or outside the State of any money for the payment of pension or other pensionary benefits shall be subject to the rules and regulations for the time being in force in relation to such remittances.

1. (2) The profits earned by the industrial undertaking from the appointed day shall be payable to the Government.
2. (3) Unless otherwise expressly provided by this Act all deeds, bonds, agreements, powers of attorney, grants of legal representation and other instruments of whatever nature in relation to the said industrial undertaking subsisting or being effective immediately before the appointed day, shall be of full force and effect against or in favour of the Government and may be enforced or acted upon as fully and effectively as if in the place of the said industrial undertaking the Government had been a party thereto or as if they had been issued in favour of the Government.
3. (4) If on the appointed day, any suit, appeal or other proceeding of whatever nature in relation to the said industrial undertaking, which have been transferred to and vested in the Government under section 5 is pending by or against the said industrial undertaking, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason of the transfer of the said industrial undertaking or of anything contained and enforced by or against the Government.

Special provisions as to certain rights and interests held by the industrial undertaking before the appointed day.--(1) Every right or interest in respect of any property in the State (including a right and any lease or under any right of tenancy or any right under any arrangement to secure any premises for any purpose which the said industrial undertaking held immediately before the appointed day) shall, notwithstanding anything contained in any other law or in any agreement or instrument relating to such rights or interest, vest in and be held by the Government on and after the appointed day on the terms and conditions on which the said industrial undertaking would have held it, if no notification/negotiations had taken place for the acquisition by the Government of the undertaking by or of the said industrial undertaking in the State if this Act had not been enacted.

1. (2) If at any time before the expiry of the period of any lease or tenancy, the industrial undertaking surrendered or otherwise relinquished any right or interest in respect of any premises or property, otherwise than under any lease or under any arrangement to secure any premises or property for the purpose of this Act notwithstanding anything contained in any other law or in any agreement or instrument, such surrender or relinquishment, the Government shall on and after the appointed day be entitled to such right or interest if it had not been surrendered or relinquished such right or interest and that the Government shall satisfy the same: Provided that nothing in this sub-section shall apply to any right or interest surrendered or otherwise relinquished by the said industrial undertaking before the appointed day which was in consideration for any monetary consideration.
2. (3) On the expiry of the term of any lease or tenancy or arrangement referred to in sub-section
3. (1) or (2), such lease or tenancy or arrangement shall, if so desired by the Government, be continued, so far as may be, on the same terms and conditions on which the lease or tenancy or arrangement was originally entered into.

Removal of doubts

1. (1) For the removal of doubts, it is hereby declared that the provisions of sections 5, 6 and 7 shall apply to the extent to which any property is held in the State by the said industrial undertaking. The power, authority and powers acquired and to be exercised by the Government, shall extend to contracts, agreements and other instruments of whatever nature subsisting or issued to the industrial undertaking and to the transfer of the industrial undertaking in the State and to proceedings relating to those matters pending in any Court or Tribunal in or outside the State.
2. (2) If any question arises as to whether any property was immediately before the appointed day owned or possessed by the industrial undertaking in the State or whether any rights, liabilities or obligations were acquired or incurred or whether any contract or other instrument was made or executed by the said undertaking for the purposes of its business or whether any provisions of this Act relate to those purposes, the question shall be referred to the Government which shall, after giving a reasonable opportunity of being heard to the person concerned, decide in such manner as it may think fit.

Payment of amounts to the industrial undertaking.--(1) For the transfer to and vesting in the Government under sections 3 and 5 of the shares, right, title and interest of the industrial undertaking, there shall be paid by the Government an aggregate amount of Rupees two lakhs to the industrial undertaking in the proportion agreed to by them.

1. (2) The amount specified in sub-section
2. (1) shall carry interest free of Income-tax at the rate of 10% per annum from the appointed day, till the date of payment in the manner as may be prescribed.
3. (3) The amounts payable under sub-sections
4. (1) and
5. (2) shall be payable in instalments in the prescribed manner.
6. (4) In addition to the amounts mentioned in sub-sections
7. (1) and
8. (2) the Government shall pay to the industrial undertaking such amount in Indian currency as may be required by the said industrial undertaking to pay towards all taxes in India on the amounts payable under the said sub-sections and all other taxes in India the liability for the payment of which arises directly on the transfer to and vesting in the Government of the shares and of the undertakings of the industrial undertakings.

Transfer of service of existing employees of the industrial undertaking.--(1) Every whole-time officer or other employee of the industrial undertaking who was immediately before the appointed day,