The Textile Undertakings (Nationalisation) Act, 1995

(1) This Act may be called the Textile Undertakings(Nationalisation) Act, 1995. (2) The provisions of sections 31 and 32 shall come into force at once and the remaining provisions ofthis Act shall be deemed to have come into force on the 1st day of April, 1994.

(1) In this Act, unless the context otherwise requires,-- (a) "appointed day" means the 1st day of April, 1994; (b) "bank" means-- (i) the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955); (ii) a subsidiary Bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959(38 of 1959); (iii) a corresponding new bank constituted under section 3 of the Banking Companies(Acquisition and Transfer of Undertakings) Act, 1970(5 of 1970); (iv) a corresponding new bank constituted under section 3 of the Banking Companies(Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980); (v) any other bank, being a scheduled bank as defined in clause (e) of section 2 of the ReserveBank of India Act, 1934 (2 of 1934); (c) "Commissioner" means a Commissioner of Payments appointed under section 17; (d) "Custodian"means a Custodian appointed under section 4 of the Textile Undertakings (TakingOver of Management) Act, 1983 (40 of 1983) or under section 4 of the Laxmirattan and AthertonWest Cotton Mills (Taking Over of Management) Act, 1976 (98 of 1976), as the case may be; (e) "National Textile Corporation" means the National Textile Corporation Limited formed andregistered under the Companies Act, 1956 (1 of 1956); (f) "notification" means a notification published in the Official Gazette; (g) "owner", when used in relation to a textile undertaking, means any person or firm who orwhich is, immediately before the appointed day, the immediate proprietor or lessee or occupier of thetextile undertaking or any part thereof, and in the case of a textile company which is being wound upor the business whereof is being carried on by a liquidator or receiver, includes such liquidator orreceiver, and also includes any agent or manager of such owner but does not include any person orbody of persons authorised under the Textile Undertakings (Taking Over of Management) Act, 1983(40 of 1983) or under the Laxmirattan and Atherton West Cotton Mills (Taking Over of Management)Act, 1976 (98 of 1976) to take over the management of the whole or any part of the textileundertaking; (h) "prescribed" means prescribed by rules made under this Act; (i) "specified date" means such date as the Central Government may, for the purpose of anyprovision of this Act, by notification, specify; and different dates may be specified for differentprovisions of this Act; (j) "subsidiary textile corporation" means the National Textile Corporation (South Maharashtra)Limited, the National Textile Corporation (Uttar Pradesh) Limited or any other textile corporationformed by the National Textile Corporation as its subsidiary; (k) "textile" includes yarn or fabrics made either wholly or partly of cotton, wool, jute, syntheticand artificial (man-made) fibres; (l) "textile company" means a company (being a company as defined in the Companies Act,1956) (1 of 1956) specified in column (3) of the First Schedule as owning the textile undertakingspecified in the corresponding entry in column (2) of that Schedule; (m) "textile undertaking" or 'the textile undertaking" means an undertaking specified incolumn (2) of the First Schedule, the management of which was before the appointed day, taken overby the Central Government under the Textile Undertakings (Taking Over of Management) Act, 1983(40 of 1983), or as the case may be, under the Laxmirattan and Atherton West Cotton Mills (TakingOver of Management) Act, 1976 (98 of 1976). (2) Words and expressions used herein and not defined but defined in the Companies Act, 1956(1 of 1956), shall have the meanings respectively assigned to them in that Act.

(1) On the appointedday, the right, title and interest of the owner in relation to every textile undertaking shall stand transferredto, and shall vest absolutely in, the Central Government. (2) Every textile undertaking which stands vested in the Central Government by virtue ofsub-section (1) shall, immediately after it has so vested, stand transferred to, and vested in, the NationalTextile Corporation. 1[(3) Notwithstanding the transfer and vesting of any textile undertaking to the National TextileCorporation by virtue of sub-section (2), the lease-hold rights of the textile undertakings shall continue toremain vested in the Central Government on payment of lease-hold rents and shall be discharged, for andon behalf of that Government, by the National Textile Corporation as and when payment of suchlease-hold rents or any amount becomes due and payable. (4) Subject to sub-section (3), no court shall have jurisdiction to order divestment from the NationalTextile Corporation of the property vested in it by the Central Government.]

(1) The textile undertakings referred to in section 3 shall be deemed toinclude all assets, rights, lease-holds, powers, authorities and privileges and all property, movable andimmovable, including lands, buildings, workshops, stores, instruments, machinery and equipment, cashbalances, cash on hand, reserve funds, investments and book debts pertaining to the textile undertakingsand all other rights and interests in, or arising out of, such property as were immediately before theappointed day in the ownership, possession, power or control of the textile company in relation to the saidundertakings, whether within or outside India, and all books of account, registers and all other documentsof whatever nature relating thereto and shall also be deemed to include the liabilities and obligationsspecified in sub-section (2) of section 5. (2) All property as aforesaid which have vested in the Central Government under sub-section (1) ofsection 3 shall, by force of such vesting, be freed and discharged from any trust, obligation,mortgage,charge, lien and all other incumbrances affecting it, and any attachment, injunction or decree or order ofany court or other authority restricting, the use of such property in any manner shall be deemed to havebeen withdrawn. (3) Where any licence or other instrument in relation to a textile undertaking had been granted, at anytime before the appointed day to the owner by the Central Government or a State Government or anyother authority, the National Textile Corporation shall, on and from such date, be deemed to besubstituted in such licence or other instrument in place of the owner referred to therein as if such licenceor such other instrument had been granted to it and shall hold such licence or the textile undertakingspecified in such other instrument for the remainder of the period for which the owner would have heldsuch licence or the textile undertaking under such other instrument. (4) Every mortgagee of any property which has vested under this Act in the Central Government andevery person holding any charge, lien or other interest in, or in relation to, any such property shall give,within such time and in such manneras may be prescribed, an intimation to the Commissioner of suchmortgage, charge, lien or other interest. (5) For the removal of doubts, it is hereby declared that the mortgagee of any property referred to insub-section (2) or any other person holding any charge, lien or other interest in, or in relation to, any suchproperty shall be entitled to claim, in accordance with his rights and interest, payment of the mortgagemoney or other dues, in whole or in part, out of the amounts specified in relation to such property in theFirst Schedule, but no such mortgage, charge, lien or other interest shall be enforceable against anyproperty which has vested in the Central Government. (6) If, on the appointed day, any suit, appeal or other proceeding of whatever nature in relation to anyproperty which has vested in the Central Government under section 3, instituted or preferred by or againstthe textile company is pending, the same shall not abate, be discontinued or be, in any way, prejudiciallyaffected by reason of the transfer of the textile undertakings or of anything contained in this Act, but thesuit, appeal or other proceeding may be continued, prosecuted or enforced by or against the NationalTextile Corporation. (7) Any person who, on the date on which the Textile Undertakings (Nationalisation) Ordinance,1995 (Ord. 6 of 1995) was promulgated, was in possession of, or had under his custody or control, thewhole or any part of any textile undertaking referred to in section 3, the management of which could notbe taken over by the Central Government by reason of any decree, order or injunction of any court orotherwise, shall deliver forthwith the possession of such undertaking or part and all books of account, registers and all other documents of whatever nature relating to such undertaking or part to the CentralGovernment or the National Textile Corporation or such other person as the Central Government or theNational Textile Corporation, as the case may be, may specify in this behalf. 1[(8) Notwithstanding the fact that the textile operations have been discontinued in any textileundertaking being revived, shall for all effects and purposes be deemed that the textile operations arebeing continued and no suit or proceeding shall be instituted or if instituted be maintainable against theNational Textile Corporation on the ground that it has discontinued such activity in the textileundertaking. (9) For the removal of doubts, it is hereby declared that the continued deemed vesting of the leaseholdland in the Central Government shall not affect, impair or in any manner prejudice the rights of theNational Textile Corporation to prosecute or defend any proceedings as a subsequent vestee in respectof any such lease-hold rights and no such proceedings shall fail only on account of the non-impleadmentof that Government.]

(1) Every liability, other than the liabilityspecified in sub-section (2), of the owner of a textile undertaking, in relation to the textile undertakings inrespect of any period prior to the appointed day, shall be the liability of such owner and shall beenforceable against him and not against the Central Government or the National Textile Corporation. (2) Any liability arising in respect of-- (a) loans advanced by the Central Government, or a State Government, or both, to a textileundertaking (together with interest due thereon) after the management of such undertaking had beentaken over by the Central Government under section 3 of the Textile Undertakings (Taking Over ofManagement) Act, 1983, (40 of 1983) or as the case may be, under section 3 of the Laxmirattan andAtherton West Cotton Mills (Taking Over of Management) Act, 1976 (98 of 1976); (b) amounts advanced to a textile undertaking after the management of such undertaking hadbeen taken over by the Central Government under section 3 of the Textile Undertakings (Taking Overof Management) Act, 1983 (40 of 1983), or as the case may be, under section 3 of the Laxmirattanand Atherton West Cotton Mills (Taking Over of management) Act, 1976 (98 of 1976) by theNational Textile Corporation or by a State Textile Corporation, or by both, together with interest duethereon; (c) wages, salaries and other dues of employees of the textile undertaking, in respect of anyperiod after the management of such undertaking had been taken over by the Central Government, shall, on and from the appointed day, be the liability of the Central Government and shall be discharged,for and on behalf of that Government, by the National Textile Corporation as and when repayment ofsuch loans or amounts becomes due or as and when such wages, salaries or other dues become due andpayable. (3) For the removal of doubts, it is hereby declared that,-- (a) save as otherwise expressly provided in this section or in any other section of this Act, noliability, other than the liability specified in sub-section (2), in relation to a textile undertaking, inrespect of any period prior to the appointed day, shall be enforceable against the Central Governmentor the National Textile Corporation; (b) no award, decree or order of any court, tribunal or other authority in relation to any textileundertaking, passed after the appointed day, in respect of any matter, claim or dispute in relation toany matter not referred to in sub-section (2),which arosebefore that day shall be enforceable againstthe Central Government or the National Textile Corporation; (c) no liability of any textile undertaking or any owner thereof in relation to any textileundertaking before the appointed day, for the contravention of any provision of law for the time beingin force, shall be enforceable against the Central Government or the National Textile Corporation.