Taking over management of educational institutions in public interest

(1) Where the Government is of opinion that the management of any educational institution should either in public interest or in order to secure the proper management of the said educational institution be taken over, it may, after giving an opportunity to the management to make any representation, take over the management of said educational institution by issuing a notification and on and from the date of such notification the management of the said educational institution shall vest in the Government with all its assets, moveable and immovable properties. (2) Upon publication of the notification under sub-section (1), all the liabilities of the educational institution shall stand postponed for a period of five years or till the institution is finally acquired, whichever is earlier. (3) Notwithstanding anything contained in the Limitation Act, 1963, the period of limitation for any claims through Civil Court shall exclude the period covered by sub-section (2) of this section. (4) All persons who are in the management on the date of the notification shall cease to hold any office in the management and shall be deemed to have vacated their office as on that date. (5) The Director either personally or through a body of persons nominated by him, shall assume the management of the said educational institution. (6) All contracts with the management before the notification shall automatically stand terminated. The Director or the new management may renew the contracts upon fresh negotiation and fresh terms mutually agreed between the parties. All contracts of employment shall be in force during the period agreed under the contract of employment. (7) All claims against the management of the said educational institution shall remain to be the claims against the said institution and the Government shall not be liable to any of those claims or liabilities of the said educational institution. (8) Upon vesting of the management of the educational institution, the Government shall pay an amount equivalent of the net value of the property as assessed by the competent authority in five equal instalments.