(1) This Act may be called the Bihar Sugar Undertakings (Acquisition) Act, 1985.

(2) It extends to the whole of the State of Bihar.

(3) It shall come into force at once.

In this Act unless the context otherwise requires

(a) appointed day means the date on which this Act come into force;

(b) Collector means the Collector of the District and includes any officer authorised by him to perform the functions of the Collector under this Act;

(c) Corporation means the Bihar State Sugar Corporation Limited, a Government Company within the meaning of Section 617 of the Companies Act, 1956 (Act 1 of 1956);

(d) Occupier in relation to Scheduled Undertakings means the person who immediately before the appointed day had the ultimate control over the affairs of the Undertakings;

(e) Prescribed means prescribed by Rules made under this Act;

(f) Prescribed Authority means the prescribed authority appointed under Section 8;

(g) Schedule means the schedule appended to this Act;

(h) Scheduled Undertaking means an undertaking engaged in the manufacture or production of sugar by means of vacuum pans and with the aid of mechanical power in a factor specified in the First Schedule and includes

(i) Distillery Paper unit and all lands buildings works, plants, machinery, equipments instruments stores vehicles, Railway sitting in or adjacent to the mill:

Provided that the distillery or the paper units are so operated as to one has some activity in common with the other or if they have had common or interchargeable workmen or the officials or the supervisory officer or any common source of energy utilised therein or the product or by product of one utilised for the purpose of the other.

(ii) All workshops (including building, machinery, instruments, stores, equipments of the such workshops and the land on which such workshop stands) in or adjacent to the mills.

(iii) All other fixed assets, moveable or immoveable belonging to owners of the mills wherever situated and current assets belonging to the mills whether within its premises or outside and also any money lawfully, due to such owner in relation to the mills in respect of any period prior to the appointed day.

(iv) All electrical installations including any plant of equipment for generation and transmission of energy, telephone equipment furniture and fixture, pertaining to that Mill.

(v) All lands, buildings other than those referred to above wherever situated if solely used for location of the management, sale or liaison office or for the residence of the officer, staff or office of the Mills.

(vi) Government means the Government of the State of Bihar.

(1) On the appointed day the scheduled undertakings specified in the First Schedule shall stand and be deemed to have stood transferred to and vest and be deemed to have vested in the State of Bihar free from all encumbrances together with all the assets, rights leaseholds, powers authorities and privileges, all property moveable and immoveable, including lands, buildings workshops, stores, instrument, machinery and equipments, cash balance, cash in hand, reserve funds and investments pertaining to the undertaking and all other rights and interest in or arising out of such property as were immediately before the appointed day in the ownership, possession power or control of the undertakings whether within or outside Bihar and all books of Accounts, Registers and other documents of whatever nature relating thereto and shall vest absolutely free from all encumbrances.

(2) Notwithstanding anything contained in sub-section (1) the State Government may, if it is satisfied, that Corporation or a Government Company is willing to comply or has complied, with such terms and conditions as that Government may thinks fit to impose, direct, by an order in writing, that the right title and interest instead of continuing to vest in the State Government, vest in the Corporation Company or either on the date of publication of the directions or on such earlier or later date (not being a date earlier than the appointed day), as may be specified in the direction.

Notwithstanding anything contained in any other law for the time being in force, and except as otherwise provided in this Act on the appointed day

(1) All properties as aforesaid which have vested in the State Government Corporation 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 it and any attachment, injunction or decree or order of any Court or other authority restricting the use of such properties in any manner or appointing any received in respect of the whole or any part of such properties shall be deemed to have been withdrawn;

(2) Every mortgagee of any property which has vested under this Act in the State Government Corporation 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 prescribed authority of such mortgage, charge lien or other interest;

(3) For the removal of doubts, it is hereby declared that the mortgagee of any property referred to in sub-section (2) 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 determined under Section 7, but no such mortgage charge, lien or other interest shall be enforceable against any property which has vested in the State Government Corporation as the case may be;

(4)(i) Every liability of the scheduled undertaking in respect of any period prior to the appointed day shall be liability of the respective company owning the scheduled undertaking and shall be enforceable against such Company and not against the State Government Corporation.

(ii) For removal of doubts, it is hereby declared that, save as otherwise expressly provided in this Section or in any other Section of this Act,

(a) No liability of the scheduled undertaking in respect of any period prior to the appointed day, shall be enforceable against the State Government Corporation as the case may be;

(b) No award, decree or order of any Court, Tribunal or other authority in relation to the scheduled undertaking, passed after the appointed day in respect of any matter, claim or dispute which arose before the appointed day shall, be enforceable against the State Government Corporation;

(c) No liability incurred before the appointed day by the scheduled undertaking for contravention of any provision of law for the time being in force shall be enforceable against the State Government Corporation as the case may be;

(d) Every shareholder of the vested scheduled undertaking shall cease to have any claim to the assets for the sugar undertaking concerned from the date of vesting or acquisition except compensation to the extent of his share out of the compensation determined under this Act;

(e) Notwithstanding any provision in any other law, all the transfer disposition of properties moveable or immoveable either in part or in whole made after 29th October, 1978 of the scheduled undertaking shall be invalid and stand annulled. The Collector shall take possession of such properties with the properties of the undertaking.

(1) Whether any schedule undertaking has vested in the State Government Corporation under Section 3 every person in whose possession or custody or under whose control any property or asset, books of account, register or other document comprised in the undertaking may be, shall forthwith deliver the same to the Collector.

(2) The Collector may take all necessary steps for securing possession of any such property or assets books of account registered document and may use or cause to be used such force as may be necessary.

(3) The Collector shall prepare an inventory of all properties assets, books of accounts, registers and documents taken possession of under this Section as far as practicable in the presence of the occupier or his authorised representative.

(4) Delivery of possession to the Collector under this Section shall amount to the delivery of possession to the State Government Corporation.

(5) Without prejudice to the provisions of the foregoing sub-section any person referred to in sub-section (1) shall be liable to account to the State Government Corporation for any such property or asset, books of account, Register or documents which he has failed to deliver to the Collector.

The occupier of every scheduled undertaking shall within sixty days from the appointed day or within such further time as the Corporation may allow in that behalf furnish to the Corporation or to such officer as the Corporation may specify complete particulars of all liabilities and obligations incurred on the security of the undertaking and subsisting on the appointed day and also of all agreements and other instruments pertaining to the scheduled undertaking (including agreements, decrees, awards, standing orders and other instruments relating to leave, pension, gratuity, provident fund and other terms of service of any person employed in that undertaking) inforce immediately before the appointed day, and the Corporation shall afford him all reasonable facilities for this purpose.

(1) The State Government shall by way of compensation for acquisition of the scheduled undertaking pay the amount by which the book value of the assets of the undertaking as determined by the prescribed authority appointed by the Government exceeds its depreciation:

Provided that the State Government shall have right to get financial positions of the concerned undertakings audited in a proper manner and realise from any officer, Director to Manager of such undertaking who may be found to have misappropriated any sum as revealed by such audit.

(2) The liability of the scheduled undertaking in respect of the period prior to the appointed day shall be met, in accordance with the rights and interest or the conditions of the respective undertaking from the amount payable as compensation as determined under sub-section (1) and shall be limited to the amount of compensation so determined.

(3) The claims arising out of the matter specified in the second schedule shall have priorities in accordance with the following principles, namely:

(a) Category I shall have precedence over all categories and category II shall have precedence over category III and so on;

(b) Claim specified in each of the categories except category IV 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 promotion and be paid accordingly;

(c) The liabilities specified in category IV shall be discharged subject to the priorities specified in this Section in accordance with the terms of secured loan and the priority inter se of such loans; and

(d) The question of discharge of any 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.

The State Government shall by notification in the Official Gazette appoint an officer not below the rank of a Commissioner to perform the functions of the prescribed authority under this Act or the Rule made thereunder and different prescribed authorities may be appointed in respect of different scheduled undertakings.

(1) The prescribed authority shall have the powers of Civil Court, while trying a suit or executing a decree under the Code of Civil Procedure, 1908 (Act V of 1908) in respect of the following matters:

(a) Summoning and enforcing the attendance of any person and examining him on oath;

(b) Requiring the discovery and production of any document;

(c) Receiving evidence on affidavits;

(d) Issuing commission for the examination of any witness or document or for the inspection or evaluation of any property or asset comprised in a scheduled undertaking;

(e) Executing any order made by it;

(f) Such other matters if any, as may be prescribed.

(2) The prescribed authority shall have power to regulate its own procedure and to review any of its decision in the event of there being a mistake on the face of the record or correct any arithmetical or clerical error therein.

(3) If for any reason a vacancy (other than a temporary absence) occurs in the office of the prescribed authority, the State Government shall appoint another person in accordance with the provisions of this Act to fill the vacancy and the proceeding may be continued before the prescribed authority from the stage at which the vacancy is filled.

(4) The prescribed authority shall be deemed to be a Civil Court within the meaning of Section 345 of the Code of Criminal Procedure, 1973 (II of 1974) and any proceeding before the prescribed authority shall be deemed to be judicial proceeding within the meaning of Sections 193 and 228 of the Indian Penal Code, 1860 (Act XIV of 1860)].

Every decision of the prescribed authority shall be final and shall not be called in question in any Court.

The general superintendence, direction control, and management of the affairs of the business of scheduled undertakings, the right title and interest of the owners and occupiers in relation to which have vested in the State Government under Section 3, shall be

(1) In the case of scheduled undertakings in relation to which a direction has been made by the State Government under sub-section (2) of Section 3 vest in the Corporation specified in the direction.

(2) Every person who is a workman within the meaning of Industrial Disputes Act, 1947 (Act 14 of 1947) and has been in the employment of the scheduled undertaking on or before the 29th day of October, 1978 shall become, on and from the appointed day an employee of the State Sugar Corporation/Government Company, as the case may be in which the right, title and interest of scheduled undertakings have vested under this Act and shall hold office or service in the scheduled undertaking with the same right to pension, gratuity and other matters as would have been admissible to him if the rights in relation to such a scheduled undertaking has not been transferred to and vested in the State Government/Corporation and continue to do so unless and until his employment in the scheduled undertakings is duly terminated or until his remuneration terms and conditions of employment are duly altered by the State Government/Corporation:

Provided that the State Government may enquire about that genuineness of the workmen at any time whether the workman was genuinely employed in a undertaking on or before the 22nd October, 1978 and may terminate the services of such workmen who were not so employed.

(3) The State Government/Corporation in which right, title and interest in relation to a scheduled undertakings have vested, may employ on mutually acceptable terms and conditions, any person who is not a workman within the meaning of the Industrial Dispute Act, 1947, (Act 14 of 1947) and who has been immediately before the 29th October, 1978 in employment of a scheduled undertakings, and on such employment the said person shall become an employee of the State Government Corporation.

(4) Save as otherwise provided in sub-sections (1) and (2), the services of every person employed by the owner or occupier of a scheduled undertaking before the appointed day shall stand terminated on and from the specified date.

(5)(i) Where under the terms of any contract of service or otherwise, any person whose service become terminated or stand transferred to the State Government/Corporation by reasons of provisions of this Act is entitled to any payment by way of gratuity or retirement benefits or for any leave not availed of, or any other benefits, such persons may enforce his claim against the owners of the scheduled undertaking but not against the State Government/Corporation.

(ii) Where the employment of an employee stands terminated by reason of sub-section (3) and such employee is not employed by the owner/occupier of the scheduled undertakings in any of his own establishment, such owner occupier shall pay to the employee the amount standing in his credit in the Provident Fund, and also pay the amounts due to him as superannuation, Welfare and other benefits admissible to him as if the employee has superannuated or his services with the scheduled undertakings had terminate on the day immediately precedings the appointed day:

Provided that no appointment made or promotion, increment in salary, pension, allowance or any benefit granted to any person after the 29th October, 1978, and before the appointed day which in the opinion of the State Government/Corporation would not ordinarily have been admissible under the terms and conditions of service in or prior to the 29th October, 1978 shall have effect or be payable or claimable from the State Government Corporation or from any provident, pension or other fund or from authority administering the fund unless the State Government has, by general or special order, confirm the appointment, promotion or increment or has directed the continue grant of the pension, allowance or other benefit, as the case may be.

(6) Notwithstanding anything in sub-section (1), but subject to any express agreement to the contrary any person referred to therein other than a workman as defined in the Industrial Dispute Act, 1947 (XIV of 1947) who becomes an employee of the Corporation shall be liable to be transferred from the scheduled Undertaking in which he was employed immediately before the appointed day to any other Undertaking or establishment belonging to the Corporation at the same remuneration and on the same terms and conditions as govern him immediately before such transfer.

(7) If any question arises as to whether any workman was exclusive/employed in connection with the scheduled Undertaking immediately before the appointed day, it shall be decided by the prescribed authority.

(8) For the persons who, immediately before the appointed day were trustees for any pension provident, gratuity or other like fund constituted for the employees referred to in sub-section (1) other than trustees nominated by or under any law, shall be substituted as trustees by such persons as the State Government may, by general or special order, specify.

(9) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (XIV of 1947) or in any other law for the time being in force, the transfer of services of any employee to the Corporation under sub-section (1) shall not entitle any such employee to any compensation under that Act or such other law and no such claim shall be entertained by any Court.

(10) Where the State Government is satisfied that for purpose of securing uniformity in the scales of remuneration and other terms and conditions of services, applicable to person employed in connection with the scheduled undertakings vested in the Corporation or for the development of the industry in the State a reduction in remuneration payable or a revision of the other terms and conditions of service applicable to employees or a class of them is called for the State Government notwithstanding anything in this Section or in the Industrial Disputes Act, 1947 (XIV of 1947) or any other law for the time being in force or in any award, settlement or agreement for the time being in force, may at any time within a period of three years from the appointed day alter (whether by way or reduction or otherwise) the remuneration and the other terms and conditions of service to such extent and in such manner as it thinks fit and the alteration is not acceptable to any employee, the Corporation may terminate his employment by giving him compensation equivalent to three months remuneration unless the contract of service with such an employee provided for a shorter notice of termination.

Explanation I. The compensation payable to an employee under this sub-section shall be in addition to an shall be affect any pension, gratuity, provident fund or any other benefit to which the employee may be entitled under the contract of service.

Explanation II. The expression Contract of service means the contract as subsisting between the employee and the Corporation immediately before termination.

(11) For the purpose of adjudicating upon the fairness or reasonableness of the provisions of any standing order under the Industrial Employment (Standing Orders) Act, 1946 (Act XX of 1946), of the fairness and reasonableness of wages and other allowances leave with wages, holidays, bonus, profits sharing, provident fund, gratuity customary concessions and privileges, rationalisation, retrenchment or any other matter mentioned in the Second or the Third Schedule to the Industrial Disputes Act, 1947 (XIV of 1947) and for calculation of bonus under the Payment of Bonus Act, 1965 (Act XXI of 1965) or any contribution under the Employees, Provident State Fund Act, 1952 (Act XIX of 1952) or under the Employees, State Insurance Act, 1948 (Act XXXIV of 1948), the accounts profits, losses and other circumstances of or pertaining to the undertaking belonging to the Corporation in which a workman or other employee is for the time being employed shall alone be considered and not the accounts profits, losses and other circumstances of any undertaking vested by virtue of this Act in the Corporation or otherwise acquired by it.

(12) Where at any time after the appointed day the Corporation promotes any subsidiary Company and transfer one or more scheduled undertaking which by virtue of this Act have vested in the Corporation to such Company, the services of such of the employees of the Corporation declared to have been employed in connection with that or those undertaking (excepting such of them as elect otherwise within such time as may be prescribed) shall stand transferred to that subsidiary company, and every such employee shall become the employee of such company at the same remuneration, upon the same terms and conditions and with the same rights and privileges as to pension, gratuity and other matters as would have been admissible to him if the undertaking had not been transferred to the subsidiary company, and shall continue to do until his remuneration or other terms and conditions of services are revised or altered by the company under or in pursuance of any law or in accordance with any provision which for the time being governs his service, and the provisions of sub-section (5) shall mutatis mutandis apply to in relation to such transfer of services.

Where at any time during a period of one year from the appointed day, any occupier or any person interested in a scheduled undertaking required for purposes of defending any claim before the prescribed authority or for filling any return before any public officer or authority, or any other like purpose any information contained in any book of account register or other document, the Corporation shall afford him all facilities for the purpose and in particular allow him to inspect any such book, register or document or to take extract of copies therefrom.

(1) Any person, who

(a) having in his possession, custody or control any property, asset, book of account, register or other document forming part of or relating to a scheduled undertaking vested in the Corporation under Section 3 withholds it from the Collector in contravention of the provisions of Section 5; or

(b) wrongfully obtains possession of any such property, assets, book of account, register or other document; or

(c) conceals, destroys, mutilates or defaces any book of account, register or other documents with intent to evade the provision of Section 5; or

(d) wilfully fails to furnish any particular as required by Section 6; or

(e) furnishes in compliance with the requirements of Section 6 particulars which are false and which he either knows or believes to be false or does not believe to be true;

shall be deemed to have committed an offence under this Act and shall be punishable for this with imprisonment for a term which may extend to three years or with fine up to rupees ten thousand or with both.

(2) Any Court trying any offence under clause (a) or clause (b) of sub-section (1) may, at the time of convicting the accused person, order him to deliver up within a time to be fixed by it any property, asset, book of account, register or other document wrongfully obtained or wilfully withheld.

(3) No Court shall take cognizance of and offence punishable under this Section except with the previous sanction of the State Government or of an officer authorised by the State Government in that behalf.

(1) If the person committing an offence under this Act is a company, the company as well as every person in charge of and responsible to the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contined in sub-section (1) where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of or that the commission of the offence is attributable to any neglect on the part of any director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation. For the purpose of this Section

(a) Company mean any body corporate, and includes a firm or other association of individuals, and

(b) director in relation to a firm, means a partner in the firm.

No suit prosecution or other legal proceeding shall lie against the State Government the Corporation the prescribed authority or an officer or servant of the State Government the Corporation the prescribed authority to perform any function under this Act for anything which is, in good faith, done or intended to be done under this Act or any rule or order made thereunder.

All orders, directions writ and prohibition issued by any Court against the undertaking shall be deemed to be vacated and of no effect and any proceedings appeal or revision pending before any Court, Tribunal or authority against the undertaking on the appointed day shall abate.

(1) The State Government may by notification, in the Official Gazette, make Rules to carry to the purposes of this Act.

(2) All Rules made under this Act shall, as soon as, may be, after they are made be laid before each house of the State Legislature, while it is in session, for a total period of not less than fourteen days, extending in its one session or more than one successive sessions, and shall unless some latter date is appointed take effect from the date of their publication in the Official Gazette, subject to such notifications or annulments as the two Houses of the Legislature may, during the said period, agree to make, so however, that any such modification or annulment shall be without prejudice to the validity to anything previously done thereunder.

(1) The Bihar Sugar Undertaking (Acquisition) Act, 1976 (Bihar Act XIII of 1977) and the Bihar Sugar Undertakings (Acquisition) Ordinance, 1985 (Bihar Ordinance No. 38 of 1985) are hereby repealed.

(2) Notwithstanding such repeal, it shall not affect the previous operation of the enactment so repealed or anything duly done or suffered thereunder, or affect any right privilege, obligation or liability acquired, accrued or incurred under the enactment so repealed affect any penalty for forfeiture or punishment incurred in respect of any offence committed against the enactment so repealed or affect any investigation legal proceeding or remedy in respect of any such rights, privilege obligation, liability, penalty, forfeiture, or punishment and any such investigation, legal proceeding or remedy may be instituted continued or enforced and any such penalty, forfeiture or punishment may be imposed.

(3) Further notwithstanding such repeal, anything done or any action taken in exercise of the powers conferred by or under the said Ordinance shall be deemed to have been done or taken in the exercise of powers conferred by or under this Act as if this Act were in force on the day on which such thing or action was done or taken.