Vidhi Codex

Kerala Spinners, Alappuzha (Acquisition and Transfer of Undertakings) Act, 2010

The Kerala Spinners, Alappuzha (Acquisition and Transfer of Undertakings) Act, 2010

Corporate201034 sections7 chapters

This Act facilitates the government takeover of the "Kerala Spinners, Alappuzha," a textile unit previously declared sick by the Board for Industrial and Financial Reconstruction (BIFR). By acquiring this undertaking, the Kerala State Government aims to protect the interests of the textile industry and its workforce. The Act transfers ownership and assets to the Kerala State Textile Corporation, ensures the continuity of employment for workers, and establishes a Commissioner of Payments to settle legitimate claims against the former owners. It provides a legal framework for managing the transition, settling debts, and ensuring the unit's continued operation under state control.

Start reading →Read full ActSections

Chapter I PRELIMINARY →

  1. 1Short title and commencement
  2. 2Definitions

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

  1. 3Acquisition of rights of owners in respect of sick textile undertaking
  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 the sick textile undertaking
  2. 9Payment of further amount

Chapter IV MANAGEMENT ETC., OF THE SICK TEXTILE UNDERTAKING →

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

Chapter V PROVISIONS RELATING TO EMPLOYEES OF SICK TEXTILE UNDERTAKING →

  1. 13Employment of certain employees to continue
  2. 14Provident fund and other funds
  3. 15Transfer of employees to Subsidiary Textile Corporation

Chapter VI COMMISSIONER OF PAYMENTS →

  1. 16Appointment of Commissioner of Payments
  2. 17Payment by State Government to the Commissioner
  3. 19Interest accruing on the amounts standing to the credit of the account referred to in sub-section (2) shall ensure to the benefit of the owners of the sick textile undertaking.
  4. 20Examination of claims
  5. 21Admission or rejection of the claims
  6. 22Disbursement of money by the Commissioner to claimants
  7. 23Disbursement of amount to the owner of sick textile undertaking
  8. 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. 29Offences by companies
  6. 30Protection of action taken in good faith
  7. 31Delegation of powers
  8. 32Power to remove difficulties
  9. 33Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this Act.
  10. 34Power to make rules
  11. 35Repeal and Saving

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