The Jute Companies (Nationalisation) Act, 1980

This Act may be called the Jute Companies (Nationalisation) Act, 1980.

In this Act, unless the context otherwise requires,-- (a) "appointed day" means the date of commencement of this Act; (b) "Commissioner" means the Commissioner of Payments appointed under section 14; (c) "jute companies" means the companies (being companies as defined in the CompaniesAct, 1956 1 of 1956) specified in the First Schedule; (d) "Jute Manufactures Corporation" means the National Jute Manufactures CorporationLimited, a company incorporated and registered under the Companies Act, 1956 (1 of 1956); (e) "notification" means a notification published in the Official Gazette; (f) "prescribed" means prescribed by rules made under this Act; (g) "specified date", in relation to any provision of this Act, means such date as the CentralGovernment may, by notification, specify for the purposes of that provision and different dates maybe specified for different provisions of this Act; (h) words and expressions used herein and not defined but defined in the CompaniesAct, 1956 (1 of 1956), shall have the meanings respectively assigned to them in that Act.

On the appointed day, the undertakings of every jute company, and the right, title andinterest of every jute company in relation to its undertakings shall, by virtue of this Act, stand transferredto, and vest in, the Central Government.

(1) The undertakings of each jute company 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, book debts and all other rights and interests in, orarising out of, such property as were, immediately before the appointed day, in the ownership, possession,power or control of the jute company, whether within or outside India, and all books of account, registersand all other documents of whatever nature relating thereto and shall also be deemed to include theliabilities specified in sub-section (2) of section 5. (2) All properties as aforesaid which have vested in the Central Government under section 3 shall, byforce of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, lien and allother incumbrances affecting them, and any attachment, injunction, decree or order of any court or otherauthority restricting the use of such properties in any manner or appointing any receiver in respect of thewhole or any part of such properties shall be deemed to have been withdrawn. (3) 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. (4) For the removal of doubts, it is hereby declared that the mortgagee of any property referred to insub-section (3) 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 directed to be given under sections 7 and 8 tothe jute company concerned but no such mortgage, charge, lien or other interest shall be enforceableagainst any property which has vested in the Central Government. (5) Any licence or other instrument granted to a jute company in relation to its undertakings whichhave vested in the Central Government under section 3 at any time before the appointed day and in forceimmediately before that day shall continue to be in force on and after such day in accordance with itstenor in relation to and for the purposes of such undertakings, and, on and from the date of vesting of suchundertakings under section 6, in the Jute Manufactures Corporation, that Corporation shall be deemed tobe substituted in such licence or other instrument as if such licence or other instrument had been grantedto such Corporation and such Corporation shall hold it for the remainder of the period for which the jutecompany would have held it under the terms thereof. (6) If, on the appointed day, any suit, appeal or other proceeding of whatever nature, in relation to anymatter specified in sub-section (2) of section 5, in respect of the undertakings of any jute company whichhas vested in the Central Government under section 3, instituted or preferred by or against that company,is pending, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason ofthe transfer of the undertakings of such jute company or of anything contained in this Act, but the suit,appeal or other proceeding may be continued, prosecuted or enforced by or against the CentralGovernment or where the undertakings of such jute company are directed under section 6, to vest in theJute Manufactures Corporation, by or against that Corporation.

(1) Every liability, other than theliability specified in sub-section (2), of a jute company in respect of any period prior to the appointed day,shall be the liability of that company and shall be enforceable against it, and not against the CentralGovernment, or, where the undertakings of the jute company vest in the Jute Manufactures Corporation,against that Corporation. (2) Any liability arising in respect of loans advanced by the Central Government or any StateGovernment, or both, to a jute company (together with interest due thereon) after the management of theundertakings of the said jute company had been taken over by the Central Government shall, on and fromthe appointed day, be the liability of the Central Government and shall be discharged by that Government,or by the Jute Manufactures Corporation as and when repayment of such loans becomes dueand payable. (3) For the removal of doubts, it is hereby declared that-- (a) save as otherwise expressly provided in this Act, no liability, other than the liability specifiedin sub-section (2), of any jute company in relation to its undertakings in respect of any period prior tothe appointed day, shall be enforceable against the Central Government or where the undertakings ofsuch company are directed under section 6, to vest in the Jute Manufactures Corporation, against thatCorporation; (b) no award, decree or order of any court, tribunal or other authority in relation to theundertakings of any jute company, passed after the appointed day, in respect of any matter, claim ordispute, which arose before that day, not being a matter, claim or dispute in relation to any liabilityspecified in sub-section (2), shall be enforceable against the Central Government or where theundertakings of such company are directed under section 6, to vest in the Jute ManufacturesCorporation, against that Corporation; (c) no liability incurred by any jute company before the appointed day for the contravention of aprovision of any law for the time being in force shall be enforceable against the Central Governmentor where the undertakings of such company are directed under section 6, to vest in the JuteManufactures Corporation, against that Corporation.