Chapter V / .

(1) Every person who is a workman within the meaning of the Industrial Disputes Act, 1947 (Central Act 14 of 1947), and has been immediately before 1st February, 2009, employed in the undertaking shall become, on and from the date of commencement of this Act, an employee of the State Industrial Development Corporation with the same rights and privileges as to pension, gratuity and other matters as would have been admissible to him if the rights in relation to the undertaking had not been transferred to, and vested in, the Government and shall continue to do so unless and until his employment in the State Industrial Development Corporation is duly terminated or until his remuneration, terms and conditions of employment are duly altered by the State Industrial Development Corporation. (2) Every person who is not a workman within the meaning of the Industrial Disputes Act, 1947 (Central Act 14 of 1947), and who has been, immediately before 1st February, 2009, employed in the undertaking shall, in so far as such person is employed in connection with the undertaking which has vested in the Government become, on and from the date of commencement of this Act, an employee, of the State Industrial Development Corporation and shall hold his office or service therein by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privileges as to pension and gratuity and other matters as he would have held the same under the undertaking if it had not vested in the State Industrial Development Corporation and shall continue to do so unless and until his employment in the State Industrial Development Corporation is duly terminated or until his remuneration, terms and conditions of employment are duly altered by the State Industrial Development Corporation. (3) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (Central Act 14 of 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 undertaking to the State Industrial Development Corporation shall not entitle such officer or other employee to any compensation under this Act or any other law for the time being in force, and no such claim shall be entertained by any court, tribunal or other authority. (4) Where, under the terms of any contract of service or otherwise, no person whose services become terminated or whose services become transferred to the State Industrial Development Corporation by reason of the provisions of this Act is entitled to any arrears of salary or wages or any payment for any leave not availed of or other payment, not being payment by way of gratuity or pension, for any period prior to the 1st day of February, 2009, such person may, except to the extent such liability has been taken over by the Government under section 5, enforce his claim against the owner of the undertaking but not against the Government or the State Industrial Development Corporation.

Where the N undertaking or any part thereof is transferred under this Act to a ” subsidiary corporation or other agency of the Government every person > referred to in sub-section (1) and sub-section (2) of section 14. shall on r and from the date of such transfer, become an employee of the subsidiary . corporation or other agency of the Government and the provisions of = sections 14 and 15 shall apply to such employee as they apply to an AY employee of the State Industrial Development Corporation as if references in the said sections to the State Industrial Development Corporation were - references ‘to the subsidiary corporation or other agency of the Government. :

. . Cnarrer VI COMMISSIONER OF PAYMENTS ’

1. (1) For the ’ purpose of disbursing the amounts payable to the owner of the undertaking and the owners of the properties sold, the Government shall, by : notification in the Gazette, appoint a person as they may think fit to be the Commissioner of payments. N © (2) The Government may appoint such other persons as they . : may think fit to assist the Commissioner and thereupon the Commissioner may authorise one or more of such persons also to exercise all or any of the powers exercisable by him under this Act and different persons may oo be authorised to exercise different powers. ©
2. (3) Any person authorised by the Commissioner to exercise any of the powers may exercise those powers in the same manner and with the same effect as if they have been conferred on that person directly by * this Act and not by way of authorisation.
3. (4) The salaries and allowances of the Commissioner shall be as may be prescribed and it shall be defrayed out of the Consolidated Fund of the State of Kerala.

Govemment shall, within thirty days from the commencement of this Act, . pay in cash to the Commissioner, for payment to the owner of the undettaking, an amount equal to the amount spécified against the undertaking in the First Schedule and shall also pay to'the Commissioner . such{sums as may be due to thé owner of the undertaking and the owners of the properties sold under sub-section (2) of section 8, section 9 ©" and dection 10. .

• • ton 1 (2) "A separate account shall be opened by the Government in Re favor of the Commissioner and every amount paid under this. Act to the . ‘Conimissioner shall be deposited By him in that account and thereafter “ sucl account shall be operated by the Commissioner: Co | (3) Separate. records shall be maintained by the. Commissioner in } respect of the undertaking and the payment made to him under this Act. ’ | (4) -Intérest accruing on the amounts standing to the credit of the . account referred to in sub-section (2) shall ensure to the benefit of the ’ owders of the undertaking and payment of interest to the owners of the properties sold. : . “| 19. “Claims to be made to the Commissioner.—Every person having a claim against the owner of the undertaking or the properties sold shall . o p! fer such claim before the Commissioner within. thirty days from the
• • -date of appointment of the. Commissioner. or such extended period, as the Cn. G vernment may, by notification in the Gazette, specify: R .{+ Provided that if the Commissioner is satisfied that the claimant was N Rn prevented by sufficient cause from preferring the claim within the said
• • behiod he may ‘entertain the claim within a further period of thirty days , bit not thereafter. a. : | 20. Priority of claims.—(1) The claims arising out of the matters specified in the Second Schedule shall have priorities in accordance with ” the following principles, namely: — oo . : ’ (a) Category 1 will have precedence over all other tegories and Category II will have precedence over Category III and 3 on; : o Lo ‘ ‘ | . . B ) ' 14 . :

1. (b) The claims specified in each of the categories, except Category V, shall rank equally and be paid in full, but if the amount is insufficient to meet such claims in full, they shall abate in equal proportions and be paid accordingly; - ’ (¢) The liabilities specified in Category V shall be discharged subject to the priorities specified in this section, in accordance with the terms of the secured loans and the priority, inter se, of such loans; and ’
2. (d) The question of payment of a liability with regard to a : matter specified in a lower category shall arise only if a surplus is left . after meeting all the liabilities specified in the immediately higher category. * *

1. (2) The provisions of this section shall not in any way affect payment of compensation to the owners of properties sold.

(1) On receipt of the claims under section 19, the Commissioner shall arrange the claims in the order of priority specified in the Second Schedule and examine the same in accordance with the said order. (2) If, on examination of the claims, the Commissioner is of the opinion that the amount paid to him under this Act is not sufficient to meet the liabilities specified in any lower category, he shall not be required to examine the liabilities in respect of such lower category.

(1) After examining the claim with reference to the priority set out in the Second Schedule, the Commissioner shall fix a certain date on or before which every claimant shall file the proof of his claim or be excluded from the benefit of the disbursement made by the Commissioner. (2) Not less than fourteen days' notice of the date so fixed shall be given by advertisement in one issue of a daily newspaper in the English Language and one issue of a daily newspaper in the regional language, as the Commissioner may consider suitable, and every such notice shall call upon the claimant to file the proof of his claim, with the Commissioner within the time specified in the advertisement. (3) Every claimant who fails to file the proof of his claim within the time specified by the Commissioner shall be excluded from the disbursement made by the Commissioner. The Commissioner shall, after such investigation as may, in his opinion, be necessary and after giving the owner of the undertaking an opportunity of refuting the claim and after giving the claimant a reasonable opportunity of being heard, in writing, admit or reject the claim in whole or in part. The Commissioner shall have the power to regulate his own procedure in all matters arising out of the discharge of his functions, including the place or places at which, he will hold his sittings and shall, for the purpose of making any investigation under this Act, have the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (Central Act 5 of 1908), while trying a suit, in respect of the following matters, namely:— (a) summoning and enforcing the attendance of any person and examining him on oath; (b) discovery and production of any document or other material object producible as evidence; (c) reception of evidence on affidavits; (d) issue of commissions for the examination of witnesses. Any investigation before the Commissioner shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Penal Code (Central Act 45 of 1860); and the Commissioner shall be deemed to be a civil court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974). Any person aggrieved by, or who is dissatisfied with the decision of the Commissioner may, within thirty days from the date of receipt of the order leading to such decision, prefer an appeal against the decision to the principal civil court of original jurisdiction within the local limits of whose jurisdiction the undertaking is situated.

(1) If out of the amount paid to him in relation to the undertaking, there is a balance left after meeting the liabilities as specified in the Second Schedule, the Commissioner shall disburse such balance to the owner of such undertaking. (2) Before making any payment to the owner of the undertaking under sub-section (1), the Commissioner shall satisfy himself as to the right of such person to receive the whole or any part of such amount, and in the event of there being a doubt or dispute as to the right of the person to receive the whole or any part of the amount referred to in section 8, the Commissioner shall refer the matter to the court and make the disbursement in accordance with the decision of the court. (3) For the removal of doubts, it is hereby declared that the entries in column (2) of the First Schedule shall not be deemed to be conclusive as to the right, title and interest of any person in relation to the undertaking specified in the corresponding entries in column (1) of the said Schedule; and evidence shall be admissible to establish the right, title and interest of any person in relation to such undertaking. (4) Where any machinery, equipment or other property in the undertaking has vested in the State Industrial Development Corporation but such machinery, equipment or other property does not belong to the owner of such undertaking, the amount specified in column (3) of the First Schedule against such undertaking shall, on a reference made to it by the Commissioner, be apportioned by the court between the owner of such undertaking and the owner of such machinery, equipment or other property having due regard to the value of such machinery, equipment or other property on the date of commencement of this Act. Explanation:— In this section, "court", in relation to the undertaking, means the principal civil court of original jurisdiction within the local limits of whose jurisdiction, the undertaking is situated.

(1) Every contract entered into by the owner or occupier of the undertaking for any service, sale or supply and in force immediately before the date of commencement of this Act, shall, on and from the expiry of one hundred and eighty days from the said date cease to have effect unless such contract is, before the expiry of that period, ratified, in writing, by the State Industrial Development Corporation, and in ratifying such contract the State Industrial Development Corporation, may, with the previous approval of the Government, make such alterations or modifications therein as it may think fit: Provided that the State Industrial Development 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 undertaking. (2) The State Industrial Development 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 modification therein.

Any person who,— (a) having in his possession, custody or control any property forming part of the undertaking or wrongfully withholds any property from the Government or the State Industrial Development Corporation, or any person authorised by the Government or the said Corporation, as the case may be, in this behalf; or (b) wrongfully obtains possession of, or retains any property forming part of the undertaking or willfully withholds or fails to furnish to the Government, the Kerala State Industrial Development Corporation, or any person specified by the Government or the said Corporation, as the case may be, any document relating to such undertaking which may be in his possession, custody or control or fails to deliver to the State Industrial Development Corporation or any person specified by that Corporation any assets, books of account, registers or other documents in his custody relating to the undertaking; or (c) wrongfully removes or destroys any property forming part of the 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.

(1) The Government may, by notification in the Gazette, direct that all or any of the powers exercisable by them under this Act, other than the powers under section 33 and section 35, may also be exercised by any person or persons as may be specified in the notification. (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 Government.

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 such difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this Act.

It is hereby declared that this Act is for giving effect to the policy of the State towards securing the principles specified in clause (b) of article 39 of the Constitution of India. Explanation:—In this section "State" has the same meaning as in article 12 of the Constitution of India.

(1) The Government may, by notification in the Gazette, make rules to carry 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, namely:— (a) the time within which and the manner in which an intimation referred to in sub-section (4) of section 4 shall be given; (b) the manner in which money in any provident fund or other fund referred to in section 15 shall be dealt with; (c) any other matter which is required to be, or may be, prescribed. (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 modification in the rule or decides that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.