Kerala act 001 of 2018 : The Common Wealth Trust, Kozhikkode(Acquisition and Transfer of Undertaking)Act, 2012(1 of 2018)

Regn. No. KERBIL/2012/45073 3e)( (n!3 dated 5-9-2012 with RNI )vernment1 of Kerala Reg. No. KL/TV(N)/634/2015-17

2018

CcO( W(TUOO

KERALA GAZETTE

mcn)3w3c6mo

EXTRAORDINARY

W1o3a1o3(D)1 1uS(ITh

I. PUBLISHED BY AUTHORITY

MOOSO 7

)

Vol. V11j Thiruvananthapuram, Monday

2018 6flJl0fl01 19

19th February 2018

1193

7th Kumbharn I 193

1939 00eOft 30

30th Magha 1939

(Thfli(

No. J

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405

GOVERNMENT OF KERALA

Law (Legislation-C) Department

NOTIFICATION

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No. 1 803/Leg.C3/20 13/Law. 19th February, 2018• Dated, Thiruvananthapuranz, 7th Kunibharn, 1193 301h Magha, 1939.

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The following Act of the Kerala State Legislature is hereby published for geera1 information. The Bill as passed by the Legislative Assembly received the assent of the President on the 1st day of February, 2018. By order of the Governor,

B. (1 HARINDRANATH,

Law Secreta,y.

PRINTED AND PLJBLISIIED BY THE SUPERINTENDENT.OF GOVERNMENT PRESSES

AT THE GOVERNMENT CENTRAL PRESS. IHIRUVANANTIIAPURAM. 2011.

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ACT 1 OF 2018

THE COMMONWEALTH TRUST, KOZHIKODE (ACQUISITION

AND TRANSFER OF UNDERTAKING) ACT, 2012.

An Act to provide for the acquisition, and transfer of the Handloom Weaving Factory,, Mananchira, Kozhikode, a unit of the .

. commonwealth Trust ('India) Limited and the right, title and interest of the owners in respect of the said, undertaking with a view to reorganising and rehabiliiating the undertaking and to establish an industrial museum and production centre under the Kerala State Industrial Development Corporation and fbr matters. connected therewith or incidenial thereto.

Preanthle.—WHEIuAs, it is expedient to provide for the acquisition and transfer of the Handloom Weaving Factory, Mananchira, Kozhikode, a unit of Commonwealth Trust (India) Limited and the right, title and interest of the owners in respect of the said undertaking with a view to reorganising and rehabilitating the undertaking and to establish an industrial museum and production centre under the Kerala State Industrial Development Corporation and for matters connected therewith or incidental thereto; BE' it enacted in the Sixty-third year 'of the Republic of India as follows:—

CHAPTER 1

PRELIMINARY

1. Short title and cornnzencenzent.—(l) This Act may be called the Commonwealth Trust, Kozhikode (Acquisition and Transfer of Undertaking) Act, 2012.

(2) It shall come into force at once.

2 Definisions.—(l) In this Act, unless the context otherwise requires,— . . . .

(a) "Commissioner" means the Commissioner of payments appointed under section 17; . .

) 'Govermnent" means the Government of Kerala,

"owner" méansthe ersoii or association of persons who or which was immediately before the date of commencement of this Act the proprietor or lessee or occupier of the undertaking or any part thereof or a perso1 or persons who purchased land from the undertaking and includes the subsequent transferees of such land;

"prescribed" means prescribed by rules made under this Act;

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"State Industrial Development Corporation" means the Kerala State Industrial Development Corporation formed and registered under th Companies Act, 1956 (Central Act I of 1956);

(f) "textile company" means the company specified in column 1) of the First Schedule as owning the undertaking specified in thecorresponding entry in column (2) of that Schedu1e / (g) "undertaking" means the textile undertaking specified in the First Schedule;

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(h) "unused land" means the properties sold by the undertaking or any person or authority on its behalf which are in the possession and ownership of the transferees but remain unused as on the date of èommencement of this Act and more specifically described in the ' ThirdfSchedule to this Act;

/ (2) Words and expressions• used but not defined in this Act and ' defined in the Industries (Development and Regulation) Act, 1951 (Central Act 65 of 1951), shall have the meanings respectively assigned to them in that tAct.

or, I (3) Words and expressions used but. not defined either in this Act the Industries (Devçlopment and Regulation) Act, 1951 (Central Act 65 jf 1950, and defined in the Companies Act, 1956 (Central Act I of

1956), shall have the meanings respectively assigned to them in the

Conpanies Act, 1956 (Central Act 1 of 1959.

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CHAPTER II

ACQUISITION OF THE RIGHTS OF OWNER OF THE

UNDERTAKING

Acquisition of rights of owner in respect of the undertaking.—

(1) The right, title and interest of the owner in relition to the undertaking and the unused land shall, by virtue of this Act, stand transferred to, and shall vest absolutely in, the Government.

(2) The said undertaking and the unused land which stand vested in the Government by virtue of sub-section (1) shall, immediately after it v has so vested, stand transferred to, and vest in, the State Industrial Development Corporation.

General effect of vesting.—(l) The undertaking referred to in section 3 shall be deemed to. include all assets, rights including lease-hold rights, powers, authorities and privileges and all property, movable and immovable, including lands, buildings, workshops, stores, instruments, machinery and equipment, cash balances, cash on hand, reserve funds, investments and book debts and all other rights and interests in, or arising out of, such property as were immediately before the date of commencement of this Act in the possession, power or control of the owner and all books of account, registers and all other documents of whatever nature relating thereto and shall also be deemed to include the liabilities and obligations specified in sub-section (2) of section 5, All property as aforesaid which have vested in the

Government under sub-section (1) of 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 cotirt restricting the use of such. property in any manner shall be deemed to have been withdrawn. Where any licence or other instrument in relation to the said undertaking had been granted at any 4time before the date of commencement of this Act to an owner by the Central Government or a State Government or any other authority, the State Industrial Development Corporation shall, on and from such date be deemed to be substituted in

such licejce or other instrument in place of the owner referred to therein as if such licence or other, instrument had been granted to it and shall hold suh licence or the said undertaking specified in such other in'strumbnt for the remainder of the period for which the owner would have hd such licence or the undertaking under such other instrument. '(4) Every mortgagee of any'property which has vested under this Act in [the 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 mortgage, charge, lien or other interest., / (5) For the removal of doubts, it is hereby declared that the mortagee of any property referred to in sub-section (2) or any other; persn 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 inteest, pa'ment of the mortgage money or other dues, in whole or in part, out' of the amount specified in relation to such property, in. the First Schedule, but no such 'mortgage, charge, lien or other interest shall be enf?orceable against any property which has vested in the Government. / (6) 'if, any suit,' appeal or other proceeding of whatever nature in relation to any matter. specified in sub-section (2) of section 5 in. respect of the said undertaking, instituted or preferred by or against the textile csmpany is pending as on' the date of commencement of this Act, the, s,kme shall not abate, be discontinued or be, in any way, prejudicially 4tected by reason of transfer of the undertaking or of anything contained in this Act but the suit, appeal or other proceedings may be continued, ,rosecuted and enforced by the State Industrial Development Corporation. '5. Owner to be liable for certain prior liabilities.—(l) Every liability, other than the liability specified in sub-section (2), of the owner in respect of any period prior to the date of commencement of this Act shall be the liability of such owner and shall be enforceable against him and not against the Government or the Kerala State Industrial Development Corporation. . .

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(2) Any liability arising in respect of— loans advanced by the Central Government or the State Government to the undertaking (together with interest due thereon); wages, salaries and other dues of employees of the said undertaking, in respect of any period after the undertaking has been taken over by the Government, shall be the liability of the Government and shall . r

be discharged, for and on behalf of the Government, by the State Industrial Development Corporation as and when repayment of such loans or amounts become due or as and when such wages, salaries or other dues become due and payable. . . .'

(3) For the removal of doubts, it is hereby declared that,— save as otherwise expressly provided in this section or in any other secton of this Act, no liability, other than the liability specified in sub-section (2), in relation to the undertaking or the property sold in, respect of any period prior to the date of commencement of this Act, shall• be enforceable against the Government or the Kerala State Industrial Development Corporation;

no award, decree or order of any court, tribunal or other authority in relation to the undertaking or the' properties sold, which are passed after the date of commencement of. this Act in respect of any matter, claim or dispute, in relation to any matter not referred to in sub-section (2) which arose before that day, shall be enforceable against the Government or the State Industrial Development Corporation; no liability of the undertaking or any owner thereof for the contravention, before the company has been closed, of any provision of,a law' for the time being in force, shall be enforceable against the Government or the State Industrial Development Corporation.

6. State Industrial Development Corparation to form subsidiary corporations.—(l) The State Industrial Development Corporation may, if it consider it necesary to do, so, form subsidiary corporations 'under the Companies Act, 1956 (Central Act I of 1956), and register them under that Act. .

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State Industrial 'Development CorpoMtion may, by order in .wtiting, r the undertaking or part, thereof to a subsidiary corporation or other y of the Government and any such transfer shall be subject to such

and conditions as may, be specified in the order.

(3) The subsidiary corporation or other agency of the Government shall, on and from the date of such transfer, be.deemed to be substituted in the licence or other instrument :referred to in sub-section (3) of section 4 in place of he State Industrial Development Corporation as if such licence or other instrument had, been granted to the subsidiary corporation or other agency of the Government and shall hold such licence or other' instrument i'or the remaining period for which.the State Industrial Development Corporation would have held such licence or àther instrument.

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(4) dn transfer of the undertaking or part thereof to a subsidiary corporation or other agency of the Government the liabilities required to be discharged, by the State Industrial Development Corporation under sub-section (2).of section 5 shall, in so fat as they relate to the said undertaking or part thereof so transferred to the subsidiary corporation or other agency' of the Government be discharged on and from the date of such transfer by the subsidiary corporation or other agency of the Government as and when any such liability is .required to be discharged.

(5) rave as otherwise 'expressly provided in 'this Act, references in this Act to the State Industrial Development Corporation shall in respect of the said undertaking or any part thereof which is transferred to a subsidiary corporation or other agency of the Government be construed as references to such subsidiary corporation or other agency of the

7. Shares to be issued by the State Industrial Develop,nent Corporation for the va/tie of the assets transferred to it by Govern,neiit.—(l) An amount equal to the value of the assets of the undertakin4 and the properties sold which are transferred to, and vested in,. the State. Industrial Development Corporation under sub-section (2) of section .31 shall be deemed to be the contribution made by the Governmet to the equity' capital of the State Industrial Development

r] Corporation; and for the contribution so made, the State Industrial Development Corporation shall issue (if necessary after amending its memorandum and articles of association) to the Government paid-up shares, in the equity capital, having a face value equal to the amount specified against the undertaking in the corresponding entry in column (3) of the First Schedule.

(2) Where any liability is assumed by the Government under sub-section (1) of section 26 they may call upon the State Industrial Development Corporation to issue (if necessary, after amending the memorandum and articles of association of the Corporation) to the Government additional paid-up shares, in its equity capital having a face value equal to the amount of the liability assumed by the Government under the said sub-section.

CHAPTER III

PAYMENT OF AMOUNT OR COMPENSATION

Payrnent of amount to owner of the undertaking.—(l) The owner of the undertaking shall be given by the Government, in cash and in the manner specified in Chapter VI for the transfer to, and vesting in, it under sub-section (1) of section 3, of such undertaking and the right, title and interest of the owner in relation to the undertaking, an amount equal to the amount specified against it in the corresponding entry in column (3) of the First Schedule. -

(2) In addition to the amount referred to in sub-section (1), there shall be given by the Government, in. cash, to the owner of the undertaking, simple interest at the rate of four per cent per annum on the amount specified against such owner in the corresponding entry in column (3) of the First Schedule for the period commencing on the date of commencement of this Act, and ending on the date on which payment of such amount is made by the Government to the Commissioner. Paynzent of further amount.—(l) The textile company shall be given by the Government for the deprivation of its management an amount of one thousand rupees per annum for the period commencing on the date on which the undertaking has been closed and ending on the date of commencement of this Act.

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The amount calculated in accordance with the provisions of sub-section (1) shall carry simple interest at the rate of four per cent per annum for the period commencing on the date of commencement of this Act and ending on the date on which the payment of such amount is made by the ovemnient to the Commissioner.

The. amounts determined in relation to the undertaking in accordance with..the provisions. of sub-seclions (1) and (2) shall be given, by the Government to the textile company in addition to the amount specified in the First Schedule against that company.

10. Paydzent of compensation to owners of properties sold and vested in Go)ernment.—( 1) The owners of the properties sold and vested in Governmei t under this Act shall be entitled for an amount by way of compensation at the rate of the market value of the land prevalent in the area as on the date of commencement of this Act.

The Commissioner shall be competent to fix the market value as compensation payable. under sub-section (l) In the matter of - fixation of ccmpensation under sub-section (1), the Commissioner shall have all the powers of a Collector under the Land Acquisition Act; frhe owners of the land shall be entitled' to interest at the rate of 12% per annum on, the amount so fixed by the Coihmissioner or in appeal, asl the case may be, from the date of commencement of this Act till the date of paymentof the amount to.hiin:

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CHAPTER IV

MANAGEMENT, ETC., OF THE UNDERTAKING

11. MaiL gement. etc., of the undertaking and the land vested in Government.—The State Industrial Development Corporation or any person which that Corporation may, by order in writing, specify, shall be entitled to exercise the powers of general superintendence, direction, control and 6anagemeit of the affairs and business of the undertaking, the right, title and intert of an owner in relation to which have vested in that Corporation under. sub-section (2) of section 3, and do all such things as the owner of the undertaking is authorised to exercise and do. 33/63712018lS-.

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Duty, of persons in charge of management qf the undertaking to deliver all assets, etc.—On the vesting of the management of the undertaking in the State Industrial Development Corporation, all persons in charge of the management of undertaking immediately before such vesting shall be bound to deliver to the State Industrial Development Corporation all assets, books of account, registers or other documents in their custody relating to the said undertaking.

Accounts.—The State Industrial Development Corporation shall maintain the accounts of the said undertaking in accordance with the provisions of the Companies Act, 1956 (Central Act I of 1956).

CHAPTER V

PROVISIONS RELATING TO EMPLOYEES OF THE

UNDERTAKING

Employment of certain employees to continue.—( 1) Every person who is a workman within the meaning of the Industrial Disputes Act, 1947 (Central Act 14 of 1947), and has been immediately before 1St February, 2009, employed in the undertaking shall become, on and from the date of commencement of this Act, an employee of the State Industrial Development Corporation with the same rights and privileges as to pension, gratuity and other matters as would have been admissible to him if the rights in relation to the undertaking had not been transferred to, and vested in, the Government and shall continue to do so unless and until his employment in the State Industrial Development Corporation is duly terminated or until his remuneration, terms and conditions of employment are duly altered by the State Industrial Development Corporation.

(2) Every person who is not a workman within the meaning of the Industrial Disputes Act, 1947 (Central Act 14 of 1947), and who has been, immediately before 1st February, 2009, employed in the undertaking shall, in so far as such person is employed in connection with the undertaking which has vested in the Government become, on and from the date of commencement of this Act, an employee, of the State Industrial Development Corporation and shall hold his office or service therein by -. the same tenure, at. the same remuneration and upon the same terms and

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conditions and vith the same rights and privileges as to pension and gratuity and other natters 'as he would have held the same under the undertaking if it had not vestedin the State 1ndutrial Development Corporation and4hall continue to do so unless and until his employment in the State Industrial Development Corporation is duly terminated or until his remuneration, ter6s and conditions of employment are duly altered by the' State 1ndustriaiIevelopment Corporation.

' (3) Notwithstanding anything contained in the Industrial Disputes Act. 1947' (Central Act 14 of 1947), or in any other law for the time being

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in force, the, trmnsfer of the services of any officer or other 'person employed in tle undertaking 'to the State Industrial Development Corporation shll not entitle such officer or other emloyee to any compensation under this Act or any other law for the time being in force, and no such claimhall be entertained by any court, tribunal or other authority.

(4) Where, under the terms of any contract of service or otherwise, no berson whose services become terminated or 'whose, services become transferred to the State Industrial Development Corporation' byreason of the provisions of this Act is entitled to any arrears of salary or wages or any payment for any leave not availed of or other paymem1lt, not being payment by way 'of gratuity or pension, for any period prir to the 1st day of February, 2009, such person 'may. except to the extent such liability has been taken over by the' Government Ell üñder section 5J enforce his claim against the owner of the undertaking but not against the Government or the State Industrial Development C'nrpratio'n.

15. Provident and other funds.—(l) Where the owner of the undertaking has established a provident fund, superannuation. welfare or other fund for tlie benefit of the persons employed in such undertaking, the. money relatable to the employees, whose services have become transferred by lor under this Act to thi State Industrial Development Corporation shall, out of the money standing, on the appointed day, tO 'the credit of such p-ovident fund, superannuation, welfare or other fund, stand transferred to) and shall vest in, the State Industrial Development Corporation. I '

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(2) The money which stand transferred under sub-section (1) to the State Industrial Development Corporation shall be dealt with by that Corporation in such manner as may be prescribed.

Transier of enpIoyee,s to Subsidiary Corporatioiz.—W/iere the undertaking or any part thereof is transferred under this Act to a subsidiary corporation or other agency of the Government every person referred to in sub-section (1and sub-section (2) of section 14, shall on r and from the date of such transfer, become an employee of the subsidiary corporation or other agency of the Government and the provisions of sections 14 and 15 shall apply to such employee as they apply to an employee of the State Industrial Development Corporation as if references in the said sections to the State Industrial Development Corporation were references to the subsidiary corporation or other agency of the Government.

CnAITIR VI

COMMISSIONER OF PAYMENTS

Appointment .of Commissioner of Payments.—(l) For the purpose of disbursing the amounts payable to the owner of the undertaking and the owners of the properties sold, the Government shall, by notification in the Gazette, appoint a person as they may think fit to be the Commissioner of payments.

The Government may appoint such other persons as they

may think fit to assist the Commissioner and thereupon th Commissioner may authorise one or more of such persons also to exercise all or any of the powers exercisable by him under this Act and different persons may be authorised to exercise different powers.

Any person authorised by. the Commissioner to exercise any of the powers may exercise those powers in the same manner and with the same effect as if they have been conferred on that person directly by this Act and not by .vay of authorisation.

The salaries and allowances of the Commissioner shall be as may be prescribed and it shall be defrayed out of the Consolidated Fund of the State of Kerala.

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I Payment by the Govern,nent to the Coin,nissioner—( 1) The Govei'mënt shall, within thirty days from the commencement, of this Act, pay if, . cash, to the -Commissioner, for payment to the owner of-the undetaking, an amount equal to the amount specified against the undertaking in the First Schedule and shall also pay tothe Cdmmissioner such sums as may be due to the owner' of the unde.r,taking and. the ownrS' of the properties sold • under sub-section (2) of section 8, section 9 ahd 'ection.lO.

(2) A 'separate account shall 'be opened by the Government ,in favo rof the Commissioner'and every amount paid under this. Act to the 'Commissioner shall be deposited by him in that account and thereafter such account shall be'operated by the Conunissioner. '(

'(3) Separate. recrds shall be maintained by the Commissioner in resject of the undertaidng and the payment made to hini under this Act.

(4) !nterest accniin on the amounts standing to the credit of the accunt referred to in sub-section '(2) shall ensure to the benefit of the owiers of the undertaking and payment of interest to the owners of the rooerties sold.

= .19. 'C1ains: to' be made to the Comnzissioner—Every person havIng a 'claim against the owner of the undertakingor the properties sold 'shall prfer such claim before the Commissioner within, thirty days from the 'date of appointment of the. Commissioner. or such extended.period, as the Gvernnent may, by notification in the Gazette, specify:

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Provided thatif the CommissiOner is satisfied that the claimant was evented'by sufficient cause from preferring the claim within the said riod he may 'entertain the claim within a further period of thirtS' days bitt not thereafter.

20. Priority of claims.—( 1) The claims arising out of the matters ified in 'the Second Schedule shall have priorities in accordance with following principles, namely:— , ' ..• ,

(a) Category I will have precedence over all other gOries and Category Ii will have precedence over Category III and on;

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The claims specified in each of the categories, except Category V, 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 proportions and be paid accordingly;

The liabilities specified in Category V shall be 'discharged subject to the priorities specified in this section in'accordance with the terms of the secured loans and the priority, inter Se, of such loans; and The question of payment of a 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. ;

(2) The provisions of this section shall not in any way affect payment of compensation to the owners of properties sold.

21. Examination of c/aiins.—(1) On receipt of the claims under section 19, the Commissioner shall arrange the claims in the order of priority specified in the Second Schedule and examine the same in accordance with the said order.

(2) If, on examination of the claims, the Commissioner is of the opinion that the amount paid to him under this Act is not sufficient to meet the liabilities specified in any lower category, he shall ndt be required to examine the liabilities in respect of such lower category.

22. Admission or rejection of the claims.--(l) After examining the claim with reference to the priority set out in the Second Schedule, the Commissioner shall fix a certain date on or before which every claimant shall file the proof of his claim or be excluded from the benefit of the disbursement made by the Commissioner.

(2) Not less than fourteen days' notice of the date so fixed shall be given by advertisement in one issue of a daily newspaper in the English Language and one issue of a daily newspaper' in the regional language, as the Commissioner may consider suitable, and every such notice shall call upon the claimant to file the 'proof of his claim, with the Commissioner within the time specified in the advertisement.

(3) Every claimant who fails to file the proof of his claim within the time specifid by the Commissioner shall be excluded from the disbursement made by the Commissioner.

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The Commissioner shall, after such investigation as may, in hi opinion, be necessaty and after giving the owner of the undertaking an opportunity of refitting the claim and after giving the claimant a reasonable opportunity of being heard, in writing, admit or reject the claim in whole or in part.

The Commissioner shall have the power to regulate his own procedure in all matters arising out of the discharge or his functions, including the place or places at which, he will hold his sittings and shall,' for the purpose of making any investigation under this Act, have the same powers as are vested in a civil cOurt under the Code of Civil Procedure, 1908 (Central Act 5 of 1908), while trying a suit, in respect of the following matters, namely:—

j (a) summoning and enforcing the attendance of anj person and examining him on oath;

discovery and production of any document or other

iateria1 object producible as evidence;

reception of evidence on affidavits;

issue of commissions for the examination of witnesses. Any investigation before the Commissioner shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Indian Penal Code (Central Act 45 of 1860); and the Commissioner shall be deemed to be a civil court .for the purposes of section 195 and Chapter XXVI of the Code of Criniinal Procedure,. 1973 (Central Act 2 of 1974).

Any person aggrieved by, or who is dissatisfied with the decision of the Commissioner may,.within thirty days from the date of receipt of the order leading to such decision, prefer an appeal against the decision to the principal civil court of original jurisdiction within the local limits of whose jurisdiction the undertaking is situated.

23. Dishursenicqit of money by the Commissioner to claimants.— After admitting a claim under this Act, the amount due in respect of such claim shall be credited by the Commissioner to the relevant fund or be

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paid to the person or persons to whoni such sums are due and on such credit or payment the liability of the owner in respect of such claim shall stand discharged.

24. Disbursement (t !niOuflts to the owne,: of the undertaking.—

(1) If out of the amount paid to him in relation to the undertaking, there is a balance left after meeting the liabilities as specified in the Second r Schedule, the Commissioner shall disburse such balarice to the owner of such undertaking.

Before making any payment to the owner of the undertaking under sub-section (1), the Commissioner shall satisfy himself as to the right of such person to receive the whole or any part of such amount, and in the event of there being a doubt or dispute as to the right of the person to receive the whole or any part .of the amount referred to in section 8, the Commissioner shall refer the matter to the court and make the disbursement in accordance with the decision of the court. For the removal of doubts, it is hereby declared that the entries in column (2) of the First Schedule shall not be deemed to be conclusive as to the right, title and interest of any person in relation to the undertaking specified in the corresponding entries in column (1) of the said Schedule; and evidence shall be admissible to establish the right, title and interest of any person in relation to such undertaking. Where any machinery, equipment or other property in the. undertaking has vested in the State industrial Development Corporation but such machinery, equipment or other property does not belong to the owner of such undertaking, the amount specified in column (3) of the First Schedule against such undertaking shall, on a reference made to it by the Commissioner, be apportioned by the court between the owner of such. undertaking and the owner of such machinery, equipment or other property having due regard to the value of such machinery, equipment or other property on the date of commencement of this Act.

Evplanatioii:—ln this section, "court", in relation to the undertaking, means the principal civil court of original jurisdiction within the local limits of whose jurisdiction, the undertaking is situated.

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25. Uidisbursed or u'i;claimed amounts to .be, deposited to the generl revenue accbunt.—Any amount paid to the Commissioner which remaihs undisbursed or unclaimed for a. period of three years from the, last on which the d1sbursemënt was made, shall be transferred by the Commissioner to the general revenue account of the overnment,, but a clai!$ to any money so transferred may be preferred to the Government by the person entitled to such payment and shall be dealt with' as if such tranhfer had not been'made, 'the order, 'if any, for payment of the' claim ., beidg treated as an order for the refund' of, revenue. . . I . ^' CHAPTER VII

MISCELLANEOUS

Assumption of Iiabiiity.—(1) Where any liability of the tertaking arising out of any claim specified inategory 'I, Category, II or :egoiy. 11'! or Category IV in:'the Second 'Schedule is' not discharged y by the Commissioner out of the amount paid to, him, under this Act, Commissioner shall mtimate in wntmg to the Government the extent of liability which remains widischarged, and that liability shall' be ,assumed the Government.

'(2) The liability, assumed by the Government under sub-section (1) shall be discharged by payment of the amount of the liability in negotiable bonds redeemable after the expiry of ten years and carrying simple mterpst at the rate of seven and a half per cent per annum with effect from the dàte of, commencement of this Act. '

Act to over-ride a/I' other enaiment..—The provisions of this Act shall have effect notwithstanding 'anything inconsistent therewith contained in any other law for the time being in 'force, or in any instrument having effect by virtue of any 'law other.than this Act,or 'in'. any ecree or order of any court, tribunal orauthority. • contracts' to cçase to have effect unless ratified by the State Indusfrthl Development Corporation.—(i) Bvry contract entered into by the owner or occupier of the undertaking for any service, sale or supply and in force ünmodiàtely before the date of cOmmencement ,of this 331637120181S-3.

Act, shall, on and from the expiry of one hundred and eighty days from the said date cease to have effect unless such contract is, before the expiry of that period, ratified, in writing, by the State Industrial Development Corporation, and in ratifying such contract the State Industrial Development Corporation, may, with the previous approval of the Government, make such alterations or modifications therein as it may think fit:

Provided that the State Industrial Development Corporation shall not omit to ratiI' a contract, and shall not make any alteration or modification in a contract unless it is satisfied that such contract is unduly onerous or has been entered into in bad faith or is detrimental to the interests of the undertaking.

(2) The State Industrial Development Corporation shall not omit to rati1' a contract, and shall not make any alteration or modification therein except after giving to the parties to the contract a reasonable opportunity of being heard and except after recording in writing its reason for refusal to ratify the contract or for making any alteration or modification therein.

29. Peiiallies.—Any person who,— having in his possession, custody or control any property forming part of the undertaking or wrongfully withholds any property from the Government or-the State Industrial Development Corporation, or any person authorised by the Government or the said Corporation, as the case may be, in this behalf; or

wrongfully obtains possession of, or retains any property forming part of the undertaking or willfully withholds or fails to furnish to the Government, the Kerala State Industrial Development Corporation, or any person specified by the Government or the said Corporation, as the case may be, any document relating to such undertaking which may be in his possession, custody or control or fails to deliver to the State Industrial Development Corporation or any person specified by that Corporation any assets, books of account, registers or other documents in his custody relating to the undertaking; or

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(c) wrongfully renioves or destroys any property forming part of the undertaking Or prefers any claim under the Act which he knows or has reasonable cuse to believe to be false or grossly inaccurate; shall be punishabe with imprisonment for a term which may extend to two years or with fm -which may extend to ten thousand rupees or with both.

30. Qffènce t, by companies.—(l) Where an offence under this Act has been committed by a company, every person who at the time the offence was cormmitted was in charge of, and was responsible to, the - company for the conduct of the business of the company as well as the Company, shall Ibe deemed to be guilty of the offence and shall be liable to be proceedec against and punished accordingly:

Provided It nothing contained in -this sub-section shall render any such person 141e to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prvent the commission of such offence. -

(2) Ntwithstanding anything contained in sub-section (1), where any offence uiider 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 is attributable to any neglect on the part of, any director, manager, secretary or other officer of the-. company, such director, manager, secetary or other officer shall be deemed to be guity of that ' offence and shall be liable to be proceeded against and 'punished accordingly. .

- Exp/anation:—For the purposes of this section,— -

"company" means any body corporale and inclu4es a - firm or other association of persons or a Co-operative Sociefy; and

"director" in relation to a,firrn, means a partner in the finn.

31. Pr4teciion of action taken in -good faith.—No suit, prosecution or other legl proceeding-shall lie against the Government or any officer of the Government or the State Industrial Development Corporation or

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any Subsidiary Corporation or any officer or other person authorised by either of such Corporation for anything which is in good faith done or intended to be done under this Act.

Delegation of powers.—( 1) The Government may, by notification in the Gazette, direct that all or any of the powers exercisable by them under this Act, other than the powers under section 33 and section 35, $ may also be exercised by any person or persons as may be specified in the notification.

(2) Whenever any delegation of power is made under sub-section (1), the person to whom such power has been delegated shall act under the direction, control and supervision of the Government. Power to remove dfflculties.—If any difficulty arises in giving effect to the provisions of this Act, the Government may, by order, not inconsistent with the provisions of this Act, remove such difficulty:

Provided that no such order shall be made after the expiry of a period of two years from the date Of commencement of this Act. Declaration as to the policy of the State.—It is hereby declared that this Act is for giving effect to the policy of the State towards securing the principles specified in clause (b) of article 39 of the Constitution of India.

Explanation:—In this section "State" has the same meaning as in article 12 of the Constitution of India.

Power to make rules.—(l) The Government may, by notification in the Gazette, make rules to carry out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—

(a) the time within which and the manner in which an intimation referred to in sub-section (4) of section 4 shall be given;

.1. -.

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(b) the manner in which money in any provident fund or other fund ref?rred to in section 15 shall be dealt with, () any other matter which is required to be, or may be, ..presribêd.

(3) Every rule made under this Act shall be laid as soon as may be after it iS nade, before the Legislative Assembly, while it is in session,' for a total pehod of fourteen days which may be compnsed in one session or in two sucessive sessions, and if, before the expiry of the - session in - which it is so laid or the session immediately following, the Legislative Assembly i4akes any modification in the ruleor decides that the. rule should not-be in'ade,.the rule shall thereafter have effect only in such modified foim or be' of no effect, as the case may be; so however, that

. . any such ffiodification or annulment shall be % without prejudice to the validity, of dnything 'previously done under that rule. •• THE Fusi SCHEDULE • .

[See,sections 2(f),'2(g), 4(5) and 8] '.

Nqme' k the ^• Name of the '' Amount

• under4iking . S Owner (in Rupees)

. (2) • • .. - Th 'Hdndloom Wéàving 'The' Commonwealth 500 lakhs -• •,. -. 'Factory! of the Common- Trust (India)" (Excluding wealth/Trust India Limited, • Limited • • . - liabilities) Mananchira, •. • ' • • '

Kozhikode..

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