Chapter I PRELIMINARY

(1) This Act may be called the Central India Spinning, Weaving and Manufacturing Company Limited, the Empress Mills, Nagpur (Acquisition and Transfer of Undertaking) Act, 1986. (2) It shall be deemed to have come into force on the 3rd October 1986.

In this Act, unless the context otherwise requires,— (a) “appointed day” means the date of commencement of this Act ; (b) “bank” means — (i) the State Bank of India constituted under the State Bank of India Act, 1955; (ii) a Subsidiary Bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 ; (iii) a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 ; (iv) any other bank, being a scheduled bank as defined in clause (e) of section 2 of the Reserve Bank of India Act, 1934 ; (c) “Commissioner” means the Commissioner of Payment appointed under section 14 ; (d) “Corporation” means the Maharashtra State Textile Corporation, a Government company registered under the Companies Act, 1956 ; (e) “Instituition” means — (i) The General Insurance Corporation formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972, (ii) The Industrial Credit and Investment Corporation of India, a Company being an existing Company as defined in clause (ii) of section 3 of the Companies Act, 1956, (iii) The Industrial Devlopment Bank of India established under section 3 of the Industrial Devlopment Bank of India Act, 1964, (iv) The Industrial Finance Corporation of India established under section 3 of the Industrial Finance Corporation of India Act, 1948, (v) The Industrial Re-construction Bank of India established under section 3 of the Industrial Re-construction Bank of India Act, 1984, (vi) The Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956, (vii) The Maharashtra State Finance Corporation established under section 3 of the State Financial Corporation Act, 1951, (viii) The State Industrial and Investment Corporation of Maharashtra a Company registered under the Companies Act, 1956, or (ix) The Unit Trust of India established under section 3 of the Unit Trust of India Act, 1963 ; (f) “new Government company” means a Government Company (including a subsidiary Government Company) formed and registered under the Companies Act, 1956, in which the undertaking is directed to vest under sub-section (1) of section 6 ; (g) “prescribed” means prescribed by rules made under this Act ; (h) “proprietors” means the Central India Spinning, Weaving and Manufacturing Company Limited, an existing company as defined in clause (ii) of sub-section (1) of section 3 of the Companies Act, 1956 with Registered Office at Army and Navy Building, 148, Mahatma Gandhi Road, Fort, Bombay -400 023 and includes the liquidator appointed in petition No. 183 of 1986 in the Bombay High Court ; (i) “Schedule” means the Schedule appended to this Act; (j) “specified date”, in relation to a provision of this Act, means such date as the State Government may, by notifiaction in the Official Gazette, specify for the purposes of that provision, and different dates may be specified for different provisions of this Act ; (k) “undertaking” means the industrial undertaking known as “the Central India Spinning, Weaving and Manufacturing Company Limited, ‘the Empress Mills’, Nagpur”; (l) words and expressions used herein and not defined, but defined in the Companies Act, 1956, shall have the meanings respectively assigned to them in that Act.

(1) On the appointed day, the undertaking and the right, title and interest of the proprietors in relation to the unedertakings, shall, by virtue of this Act, stand transferred to, and vest absolutely in, the State Government. (2) The undertaking which stands vested in the State Government by virtue of sub-section (1) shall, immediately after it has so vested, stand transferred to, and vested in, the Corporation.

(1) The undertaking shall be deemed to include all assets, rights, lease-holds, powers, authorities and privileges, and all property, moveable and immoveable, including lands, buildings, workshops, stores, instruments, machinery and equipment, cash balances, cash on hand, reserve funds, investments, book debts and all other rights and interests, in or arising out of, such property as were immediately before the appointed day in the ownership, possession, power or control of the proprietors, whether within or outside India, and all books of account, registers and all other documents of whatever nature relating thereto. (2) All properties as aforesaid which have vested in the State Government under section 3 shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, lien and all other encumbrances affecting them, and any attachment, injunction, decree or order of any court, tribunal or other authority restricting the use of such properties in any manner shall be deemed to have been withdrawn. (3) Every mortgagee of any property which has vested under this Act in the State Government and every person holding any charge, lien or other interest in, or in relation, to any such property shall give, within such time and in such manner as may be prescribed, an intimation to the Commissioner of such mortagage, charge, lien or other interest. (4) For the removal of doubts, it is hereby declared that the mortgagee of any property referred to in sub-section (3) or any other person holding any charge, lien or other interest in, or in relation to, any such property shall be entitled to claim, in accordance with his rights and interest, payment of the mortgage money or other dues, in whole or in part, out of the amount specified in section 7 and also out of the amounts referred to in section 8, but no such mortgage, charge, lien or other interest shall be enforceable against any such property which has vested in the State Government, the Corporation or new Government company. (5) Any licence or other instrument granted to the proprietors in relation to the undertaking which has vested in the State Government under section 3, at any time before the appointed day and in force immediately before that day, shall continue to be in force on and after such day in accordance with its tenor in relation to, and for the purposes of such undertaking, and on and from the date of vesting of such undertaking under section 3 in the Corporation, or under section 6 in the new Government company, the Corporation, or new government company, as the case may be, shall be deemed to be substituted in such licence or other instrument as if such Licence or other instrument had been granted to the Corporation, or new Government company, and that the Corporation, or the new Government company, shall hold it for the remainder of the period for which the proprietors would have held it under the terms thereof.

(1) Every liability of the proprietors in relation to the undertaking in respect of any period prior to the appointed day, shall be the liability of the proprietors and shall be enforceable against them and not against the State Government or against the Corporation or, where the undertaking is directed under section 6 to vest, in a new Government company, against the new Government company. (2) For the removal of doubts, it is hereby declared that.— (a) save as otherwise expressly provided in this section or in any other provision of this Act, no liability, shall be enforceable against the State Government or the Corporation, or, where the undertaking is directed under section 6 to vest in any other new Government company, against such new Government company ; (b) no award, decree or order of any court, tribunal or other authority in relation to the undertaking passed on or after the appointed day, in respect of any matter, claim or dispute, which arose before that day, shall be enforceable against the State government or the Corporation or, where the undertaking is directed under section 6 to vest in any other new Government company, against such new Government company ; (c) no liability incurred by the proprietors before the appointed day, for the contravention of any provision of any law for the time being in force, shall be enforceable against the State Government or the Corporation, or where the undertaking is directed under section 6 to vest in any other new Government company, against such new Government company ; (d) notwithstanding anything contained in sub-sections (1) and (2) of section 12 or any other provisions of this Act, or any other law for the time being in force or any contract, agreement, settlement, award or decree or order of any court, tribunal or other authority, no liability towards claims of whatever nature of any employee against the proprietors in respect of his employment in the undertaking for the period prior to the appointed day shall be enforceable against the State Government or the Corporation, or where the undertaking is directed under section 6 to vest in any other new Government company, against such new Government company.

(1) Notwithstanding anything contained in sections 3 and 4, where the undertaking vests, under sub-section (2) of section 3, in the Corporation, the State Government may, subject to such terms and conditions as it may think fit to impose, direct, by notification in the Official Gazette, that the undertaking and the right title and interest of the proprietors in relation to the undertaking, which had vested in the State Government and which on its transfer vest in the Corporation under section 3, shall instead of continuing to vest in the Corporation, vest in a new Government company with effect from the date specified in the notification. (2) Where the right, title and interest of the proprietors in relation to their undertaking vest, under sub-section (1), in the new Government company, such Government company shall, on and from the date of such vesting, be deemed to have become the owner in relation to such undertaking, and all the rights and liabilities of the State Government and the Corporation in relation to the undertaking shall, on and from the date of such vesting, be deemed to have become the rights and liabilities of such Government company.