Vidhi Codex

Bare Act

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

Corporate201037 sections

This Act facilitates the government takeover of the "Kerala Spinners Ltd." textile mill in Alappuzha, which had been declared a "sick" company by the Board for Industrial and Financial Reconstruction (BIFR). By acquiring the undertaking and transferring it to the Kerala State Textile Corporation, the law aims to secure the assets and protect the interests of employees. It establishes a clear legal framework for settling the company's debts, prioritizing employee wages and provident funds over other liabilities. The Act also provides a mechanism for compensating the original owners and outlines the process for creditors to claim dues through a government-appointed Commissioner.

Start reading →Read full ActSections
  1. 1. Short title and commencement
  2. 2. Definitions
  3. 3. Acquisition of rights of owners in respect of sick textile undertaking
  4. 4. General effect of Vesting
  5. 5. Owner to be liable for certain prior liabilities
  6. 6. State Textile Corporation to form subsidiary corporations
  7. 7. Shares to be issued by the State Textile Corporation for the value of the assets transferred to it by State Government
  8. 8. Payment of amount to owners of the sick textile undertaking
  9. 9. Payment of further amount
  10. 10. Management, etc., of the sick textile undertaking
  11. 11. Duty of persons in charge of management of the sick textile undertaking to deliver all assets etc
  12. 12. Accounts
  13. 13. Employment of certain employees to continue
  14. 14. Provident fhwid and other jund'i.
  15. 15. Transfer of employees to Subsidiary Textile Corporation
  16. 16. Appbiniment of Commissioner of Payments
  17. 17. Payment by State Government to the Commissioner
  18. 18. Claims to be' made to the ComMLssioner.
  19. 19. Priorizy of claims?
  20. 20. Earniiation of claThzs.
  21. 21. ifdmissio, or 'ejeqton 'of the c1aims.
  22. 22. Appeal
  23. 23. Disbursement of amount to the owner of sick textile undertaking
  24. 24. Undisbursed or unclaimed amounts to be deposited to the general revenue account
  25. 25. Assumption of liability
  26. 26. Act to over-ride all other enactments
  27. 27. Contracts to cease to have effect unless ratified by State Textile Corporation
  28. 28. Penalties
  29. 29. Offences by companies
  30. 30. Protection of action taken in good faith
  31. 31. Delegation of powers
  32. 32. Power to remove difficulties
  33. 33. Declaration as to the policy of the State
  34. 34. Power to make rules
  35. 35. Repeal and Saving
  36. First Schedule. The First Schedule
  37. Second Schedule. The Second Schedule

PDF: pending for this language.