Vidhi Codex

Bare Act

The Kerala Sick Textile Undertakings (Acquisition and Transfer of Undertakings) Act, 1985

Corporate198537 sections7 chapters

This Act provides for the state acquisition and takeover of specific financially distressed textile mills in Kerala, transferring their ownership and management rights to the Kerala State Textile Corporation. It applies to the owners, creditors, and employees of the affected textile undertakings, as well as state administrative authorities. By nationalizing these troubled manufacturing units, the legislation aims to rehabilitate and reorganize them to ensure continuous industrial production, protect employment, and maintain a steady supply of affordable cotton goods to the public. Additionally, it establishes a structured legal framework and appoints commissioners to process claims, settle prior financial liabilities, and disburse compensation to former owners.

Start reading →Read full ActSections

Chapter 1 PRELIMINARY →

  1. 1Short title and commencement
  2. 2Definitions

Chapter II ACQUISITION OF THE RIGHTS OF THE OWNERS OF SICK TEXTILE UNDERTAKINGS →

  1. 3Acquisition of the rights of owners in respect of sick textile undertakings.
  2. 4General effect of vesting.
  3. 5Owner to be liable for certain prior liabilities
  4. 6State Textile Corporation to form subsidiary corporations
  5. 7Shares to be issued by the State Textile Corporation for the value of the assets transferred to it by State Government

Chapter III PAYMENT OF AMOUNT →

  1. 8Payment of amount to owners of sick textile undertakings
  2. 9Payment of further amount

Chapter IV MANAGEMENT, ETC., OF SICK TEXTILE UNDERTAKINGS →

  1. 10Management, etc., of sick textile undertakings
  2. 11Duty of persons in charge of management of sick textile undertakings to deliver all assets, etc
  3. 12Accounts

Chapter V PROVISIONS RELATING TO EMPLOYEES OF SICK TEXTILE UNDERTAKING →

  1. 13Transfer of services of employees
  2. 14Provident and other funds
  3. 15Transfer of employees to subsidiary Textile Corporation

Chapter VI COMMISSIONERS OF PAYMENTS →

  1. 16Appointment of Commissioners of Payments
  2. 17Payment by State Government to the Commissioner
  3. 18Claims to be made to the Commissioner
  4. 19Priority of claims
  5. 20Examination of claims
  6. 21Admission or rejection of claims
  7. 22Disbursement of money by the Commissioner to claimants.
  8. 23Disbursement of amounts to the owners of sick textile undertaking.
  9. 24Undisbursed or unclaimed amounts to be deposited to the general revenue account.

Chapter VII MISCELLANEOUS →

  1. 25Assumption of liability.
  2. 26Act to over-ride all other enactments.
  3. 27Contracts to cease to have effect unless ratified by State Textile Corporation.
  4. 28Penalties.
  5. 29Offence by companies.
  6. 30Protection of action taken in a good faith.
  7. 31Delegation of powers.
  8. 32Power to remove difficulties.
  9. 33Declaration as to the policy of the State.
  10. 34Power to make rules
  11. 35Repeal and Saving

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