Chapter VII MISCELLANEOUS

Assumption of liability.—(1) Where any liability of the sick textile undertaking arising out of any claim specified in Category I, Category II or Category III or Category IV in the Second Schedule is not discharged fully by the Commissioner out of the amount paid to him under this Act, the Commissioner shall intimate in writing to the State Government the extent of the liability which remains undischarged and that liability shall be assumed by the State Government.

1. (2) The liability assumed by the State Government under sub-section
2. (1) shall be discharged by payment of the amount of the liability in negotiable bonds redeemable after the expiry of ten years and carrying simple interest at the rate of seven and a half per cent per annum with effect from the appointed day.

Act to over-ride all other enactments.—The provisions of this Act shall be discharged by payment of the amount of the liability in negotiable bonds redeemable after the expiry of ten years and carrying simple interest at the rate of seven and a half per cent per annum with effect from the appointed day.

Contracts to cease to have effect unless ratified by State Textile Corporation.—(1) Any contract entered into by the owner or occupier of the sick textile undertaking for any service, sale or supply and in force immediately before the appointed day shall, on and from the expiry of one hundred and eighty days from the date of commencement of this Act, cease to have effect unless such contract is, before the expiry of that period, ratified in writing, by the State Textile Corporation and in ratifying such contract the State Textile Corporation may, with the previous approval of the State Government, make such alterations or modifications therein as it may think fit: Provided that State Textile Corporation shall not omit to ratify a contract and shall not make any alteration or modification in a contract 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 sick textile undertaking.

1. (2) The State Textile Corporation shall not omit to ratify a contract and shall not make any alteration or modification therein except after giving to the parties to the contract a reasonable opportunity of being heard and except after recording in writing its reason for refusal to ratify the contract or for making any alteration or modifications therein.

Penalties.—Any person who,—

1. (a) having in his possession, custody or control of any property forming part of the sick textile undertaking or wrongfully withholds such property from the State Government or the State Textile Corporation or any person authorised by that Government or Corporation, as the case may be, in this behalf; or
2. (b) wrongfully obtains possession of or retains any property forming part of the sick textile undertaking or willfully withholds or fails to furnish to the State Government, the State Textile Corporation or any person specified by that Government or Corporation, as the case may be, any document relating to such sick textile undertaking which may be in his possession, custody or control or fails to deliver to the State Textile Corporation or any person specified by that Corporation any assets, books of account, registers or other documents in his custody relating to the sick textile undertaking; or
3. (c) wrongfully removes or destroys any property forming part of the sick textile undertaking or prefers any claim under the 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.

Offences by companies.—(1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct 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.

1. (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 any 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 purposes of this section,—
   • (a) "company" means a company as defined in section 3 of the Companies Act, 1956 (Central Act 1 of 1956) and includes in it a firm or a Co-operative Society or other association of individuals; and
   • (b) "director" in relation to a firm, means a partner in the firm.

Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall lie against the State Government or any officer of that Government or the authorised person or the State Textile Corporation or any Subsidiary Textile Corporation or any officer or other person authorised by either of such Corporation for anything which is in good faith done or intended to be done under this Act.

Delegation of powers.—(1) The State Government may, by notification in the Gazette, direct that all or any of the powers exercisable by them under this Act other than the power under section 34 may also be exercised by any person or persons as may be specified in the notification.'

1. (2) Whenever any delegation of power is made under sub-section (1), the person to whom such power has been delegated shall act under the direction, control and. supervision of the State Government.

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

Declaration as to the policy of the Slate Declaration as to the policy of the Slate.—It is hereby declared that this Act is for giving effect to the policy of the State towards securing the principles specified in clause

1. (b) of Article 39 of the Constitution.

Power to make rules.—(1) The Government may, by notification in the Gazette, make rules to carry out the provisions of this Act.

1. (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, namely:—
   • (a) the time within which and the manner in which an intimation referred to in sub-section
2. (4) of section 4 shall be given;
   • (b) the manner in which money in any provident or other fund referred to in section 14 shall be dealt with;
   • (c) any other matter which is required to be, or may be prescribed.
3. (3) Every rule made under this Act shall be laid, as soon as may be after it is made, before the Legislative Assembly, while it is in session, for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, the Legislative Assembly makes any amendment in the rule or decides that- the rule should not be made, the rule shall thereafter have effect only in such amended form or be of no effect, as the case may be; so however, that any such amendment or annulment shall be without prejudice to the validity of anything previously done under that rule.

Repeal and Saving.—(1) The Kerala Spinners, Alappuzha (Acquisition and Transfer of Undertaking) Ordinance, 2010 (9 of 2010) 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.