Chapter II Chapter II

Taking over of the management of the undertaking of the Tea Companies in relation to the Tea Units - (1) On and from the appointed day the management of the undertaking of the Tea Companies in relation to the Tea units only shall vest in the State Government for a period of five years: Provided that the State Government may, from time to time, by notification in the official gazette extend the period, as aforesaid, for such period not exceeding one year at a time as may be specified in the notification, so, however, that the total period of such extension shall not exceed two years (after the expiry of five years as aforesaid) and wherein such notification is issued, a copy thereof shall be laid as soon as may be, before the Legislative Assembly of Tripura. (2) The undertaking of the Tea Companies in relation to the Tea Units shall be deemed to include all assets, rights, leaseholds, powers, authorities and privileges and all properties, movable and immovable, including lands, buildings, workshops, projects, stores, spares, instrument, machinery, equipments, automobiles and other vehicles, cash balance, reserve fund, investment and book debts and all other rights and interests arising out of such property as were, immediately before the appointed day, in the ownership, possession, power, or control of the concerned Company, and all books of accounts, registers, and other documents of whatever nature relating thereto. (3) If any building, workshop, store, machinery or other things of the Tea Unit, as specified in sub-section (2), are situated on any land of the Tea Units which have been sold in auction for default in payment of land revenue, the right of user in such lands of all persons or body of persons accruing from such sale shall, unless otherwise decided by the State Government., remain suspended till the management in relation to the Tea Units remain vested with the State Government: Provided that the State Government or the custodian shall pay to such person or body of persons an annual compensation of such amount as may be specified by the State Government for suspending the rights of user. (4) Any contract, whether expressed or implied, or other arrangement, in so far as it relates to the management of the business and affairs of either of the Tea Companies in relation to the tea units only, and in force immediately before the appointed day, shall be deemed to have terminated on the appointed day. (5) All persons in-charge of the management, including the persons holding office as Director, Manager or anyother managerial personnel of either of the Tea Companies, in relation to the tea units, immediately before the appointed day shall be deemed to have vacated their respective offices in relation to such units only on the appointed day. (6) Notwithstanding anything contained in any other law for the time being in force, no person in respect of whom any contract of management or other arrangement is terminated by reason of the provision contained in sub-section

1. (4) or who ceases to hold any office by reason of the provision contained in sub-section (5), shall be entitled to claim any compensation for the premature termination of the contract of management or other arrangement or for the loss of office, as the case may be. (7) Notwithstanding any judgement, decree or order of any court, tribunal or other authority or anything contained in any other law (other than this Act) for the time being in force, every Receiver or other person in whose possession or custody or under whose control any of the tea units or any part thereof may be immediately before the appointed day, shall, on the commencement of this Act deliver possession of the said tea units or such part thereof, as the case may be, to the custodian, where no custodian has been appointed, to such other person as the State Government may direct. (8) For the removal of doubt, it is hereby declared that any liability incurred by either of the tea companies in relation to its tea units before the appointed day shall be enforceable against the concerned tea company and not against the State Government or the custodian.

Custodian of the Tea Units -

1. (1) The State Government may, as soon as it is convenient administratively so to do, appoint. any person, co-operative society or body of persons (including a Government Company, whether in existence at the commencement of this Act or incorporated thereafter) as the custodian of one or more of the tea units, for the purpose of carrying on the management of such tea unit and the custodian so appointed shall carry on the management of the tea units for and on behalf of the State Government.
2. (2) On the appointment of the custodian under sub-section
3. (1) for one or more tea units, the management of such tea units shall vest in such custodian and all persons in-charge of the management of such tea units immediately before such appointment shall cease to be in-charge of such management and shall be bound to deliver such management to the custodian.
4. (3) Subject to any general or special direction given or condition imposed by the custodian, any person authorised by the custodian to exer~ise any power may exercise that power in the same manner and with the same effect as if it had been conferred on that person directly by this Act and not by way of authorisation.
5. (4) The State Government may issue such direction (including the direction as to initiating, defending or continuing any legal proceedings before any court, tribunal or other authority) to the custodian as to his or its power and duties as the State Government deems to be desirable in the circuinstances of the case and the custodian may also apply to the State Government at any time for instructions as to the manner in which he or it shall conduct the management of the tea units or in relation to employment of workers and the staff or any other matter arising in the course of such management : Provided that the liabilities specified in the second schedule shall be given priority, as far as practicable, while discharging all or any of the liabilities in relation to the tea units in accordance with the provisions of this Act and the amount required therefor may be met out of the resources of the Tea Units or any money advanced by the State Government or financial institutions in such manner and at such time as the State Government may decide, without, however, impairing the process of economic recovery of the Tea Units.
6. (5) Subject to the other provisions of the Act and the control of the State Government, the custodian shall be entitled, notwithstanding anything contained in the Companies Act, 1956, to exercise all the powers of the Board of Directors of the Tea Companies (including the power to dispose of any properties or assets of the Tea Companies) in relation to the concerned tea units only whether such powers are derived from the Companies Act, 1956, or from the memorandum and articles of association of the concerned tea company or from any other source.
7. (6) Every person having possession, custody or control of any properly forming part of any undertaking of the tea company in relation to the concerned tea unit shall deliver forthwith such property to the custodian or to any officer or other employee of the State Government or the custodian, as may be authorised by the State Government in this behalf.
8. (7) Any person who, on the appointed day, has in his possession or under his control any books, papers other documents relating to the tea units including the minute book containing the resolution of the persons in-charge of the management thereof before the appointed day, the current cheque books relating to the tea units, any letters, memorandum, notice or other communication between him and the Tea Company concerned, shall, notwithstanding anything contained in any other law for the time being in force be liable to account for the books, papers and other documents to the custodian and shall deliver them up to the custodian or to any such person (being an officer or other employee or the State Government or the custodian) as may be authorised by the State Government in this behalf.
9. (8) Every person in-charge of the management of the tea units immediately before the appointed day shall, within ten days from that day or within such further period as the State Government may allow in this behalf, furnish to the custodian a complete inventory of all properties and assets (including particulars of books, debts and investment and belongings) forming part of the undertakings of the Tea Companies in relation to such tea units immediately before the appointed day and of all liabilities and obligations of such tea companies in relation to the undertaking of such tea units, subsisting immediately before that day, and also of all agreements entered into by such tea companies in relation to its tea units and in force immediately before that day.
10. (9) The custodian shall receive from the fund of the tea units such remuneration as the State Government may fix.

Payment of amount -

1. (1) Each of the Tea Company shall be given by the State Government an amount, in cash and at the rate to be specified by the State Government, for vesting in it, under section 3, of the management of the undertakings of each such Company in relation to such tea units and the amount so specified shall be paid every year during which the management of tea unit remains vested in the State Government under this Act.