Chapter VI PROVISIONS RELATING TO THE EMPLOYEES OF THE MILLS

(1) Every person who has been immediately before the appointed day, employed in the mills shall become on and from the date of vesting specified under section 8, an employee of the Company and shall hold office or service under the Company 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 and shall continue to do so unless and until his employment under the Company is duly terminated or until his remuneration and other conditions of service are duly altered by the Company.

(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 mills to the Company shall not entitle such officer or other employee to any compensation under the Act or under any other laws for the time being in force and no such claim shall be entertained by any court, tribunal or other authority.

(1) Where the mills has established a provident fund, superannuation fund, welfare fund or any other fund for the benefit of the persons employed in the mills the money relatable to the officers or other employees, whose services have become transferred, by or under this Act to the Company shall, out of the money standing on the date of vesting specified under section 8 to the credit of such provident fund, superannuation fund, welfare fund or other fund, stand transferred to and vest in the Company.

(2) The money which stand transferred under sub-section (1) to the Company shall be dealt with by the Company in such manner as may be prescribed.

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.

Every contract entered into by the lessor, lessee or the present management in relation to the mills which has vested in the Government under section 4, for any service, sale or supply and in force immediately before the appointed day, shall on and from the expiry of thirty days from the appointed day, cease to have effect unless such contract is, before the expiry of that period, ratified in writing by the Company and in ratifying such contract, the Company may make such alteration or modification therein as it may think fit:

Provided that the Company shall not omit to ratify a contract and shall not make any alteration or modification in a contract,-

(a) unless it is satisfied that such contract is unduly onerous or has been entered into in bad faith or is detrimental to the interests of the Company;

(b) except after giving to the parties to the contract a reasonable opportunity of being heard and except after recording in writing its reasons for refusal to ratify the contract or for making any alteration or modification therein.

(1) No suit, prosecution or other legal proceedings shall lie against the Government or any officer or other employee of the Government or the Company or other person authorised by the Government or the Company for anything which is in good faith done or intended to be done under this Act.

(2) No suit or other legal proceeding shall lie against Government or any officer or other employee of the Government or the Company or other person authorised by the Government or the Company for any damage caused or likely to be caused by anything which is in good faith done or intended to be done.

Any person who,-

(a) having in his possession, custody or control, any property forming part of the mills, wrongfully withholds such property from the Government or the Company; or

(b) wrongfully obtains possession, or retains any property forming part of the mills; or

(c) wilfully withholds or fails to furnish to the Government or the Company or to any person or body of persons specified by the Government or the Company, as the case may be, any document or inventory relating to the mills which may be in his possession, custody or control; or

(d) fails to deliver to the Government or the Company or any person or the body of persons specified by the Government or the Company, as the case may be, any document or inventory relating to the lessee, lessor or the present management, which may be in his possession, custody or control relating to the mills; or

(e) wrongfully removes or destroys any property forming part of the mills; or

(f) prefers any claim under this Act which he knows or has reasonable cause 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.

(1) Where any offence under this Act has been committed by a company, every person who, at the time the offence was committed was incharge 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 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 purpose of this section,-

(a) "Company" means any body corporate and includes a firm or other association of individuals;

(b) "director" in relation to a firm, means a partner in the firm.

(1) The Government may , by notification, make rules for carrying out the provisions of this Act.

(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

If any difficulty arises in giving effect to the provisions of this Act, the Government may, by order, not inconsistent with the provisions of this Act, remove the difficulties:

Provided that no such order shall be made after the expiry of a period of two years from the appointed day.

(1) The Karnataka Co-operative Textile Mills (Acquisition and Transfer) Ordinance, 1986 (Karnataka Ordinance 11 of 1986) is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under this Act.