The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986

(1) This Act may be called the Swadeshi Cotton MillsCompany Limited (Acquisition and Transfer of Undertakings) Act, 1986. (2) The provisions of sections 27 and 28 shall come into force at once, and the remaining provisionsof this Act shall be deemed to have come into force on the 1st day of April, 1985.

In this Act, unless the context otherwise requires,-- (a) "appointed day" means the 1st day of April, 1985; (b) "Commissioner" means the Commissioner of Payments appointed under section 15; (c) "Company" means the Swadeshi Cotton Mills Company Limited, Kanpur, a company withinthe meaning of the Companies Act, 1956 (1 of 1956), and having its registered office at SwadeshiHouse, Civil Lines, Kanpur, in the State of Uttar Pradesh; (d) "date of taking over" means the date on which the management of the textile undertakings ofthe Company was taken over by the Central Government by virtue of the order of the Government ofIndia in the late Ministry of Industrial Development No. S.O. 265(E), dated the 13th April, 1978, made under clause (a) of sub-section (1) of section 18-AA of the Industries (Development andRegulation) Act, 1951(65 of 1951); (e) "National Textile Corporation" means the National Textile Corporation Limited, a companyformed and registered under the Companies Act, 1956 (1 of 1956); (f) "notification" means a notification published in the Official Gazette; (g) "Ordinance" means the Swadeshi Cotton Mills Company Limited (Acquisition and Transferof Undertakings) Ordinance, 1986 (5 of 1986); (h) "prescribed" means prescribed by rules made under this Act; (i) "specified date," in relation to any provision of this Act, means such date as the CentralGovernment may, by notification in the Official Gazette and in the newspapers circulating in thelocality in which the registered office of the Company is situated, specify for the purposes of thatprovision and different dates may be specified for different provisions of this Act; (j) Subsidiary Textile Corporation means a textile corporation formed by the National TextileCorporation as its subsidiary; (k) "textile undertakings" means the six textile undertakings of the Company specified below:-- (i) the Swadeshi Cotton Mills, Kanpur; (ii) the Swadeshi Cotton Mills, Pondicherry; (iii) the Swadeshi Cotton Mills, Naini; (iv) the Swadeshi Cotton Mills, Maunath Bhanjan; (v) the Udaipur Cotton Mills, Udaipur; (vi) the Rae Bareli Textile Mills, Rae Bareli; (l) 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 appointed day, every textileundertaking and the right, title and interest of the Company in relation to every such textile undertakingshall, by virtue of this Act, stand transferred to, and shall vest in, the Central Government. (2) Every such 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) 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 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. (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 had been granted at any time before the appointed day tothe Company in relation to the textile undertakings by the Central Government or a State Government orany local authority, the National Textile Corporation shall, on and from such day, be deemed to besubstituted in such licence or other instrument in place of the Company as if such licence or otherinstrument had been granted to the National Textile Corporation and that Corporation shall hold it for theremainder of the period of which the Company to which it was granted would have held it under the termsthereof. (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 manner as 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 interests, payment of the mortgagemoney or other dues, in whole or in part, out of the amounts specified in section 8 and section 9, but nosuch mortgage, charge, lien or other interest shall be enforceable against any property which has vested inthe 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 oragainst the 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.

(1) Every liability of the Company inrelation to the textile undertakings in respect of any period prior to the appointed day shall be the liabilityof the Company and shall be enforceable against it and not against the Central Government of theNational Textile Corporation. (2) 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 of the Company in relation to the textile undertakings, in respect of any period prior to theappointed day shall be enforceable against the Central Government or the National TextileCorporation; (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 which arosebefore that day shall be enforceable against the Central Government or the National TextileCorporation; (c) no liability incurred by the Company in relation to any textile undertaking before theappointed day, for the contravention of any provision of law for the time being in force, shall beenforceable against the Central Government or the National Textile Corporation.