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Section 5: Owner to the liable for certain prior liabilities

Kerala Sick Textile Undertakings(Acquisition and Transfer of Undertakings) Act, 1985(27 of 1985)State Act of Kerala · Act 27 of 1985

(1) Every liability, other than the liability specified in sub-section (2), of the owner of a sick textile undertaking, in respect of any period prior to the appointed day shall be the liability of such owner and shall be enforceable against him and not against to the State Government or the State Textile Corporation

(2) any liability arising in respect of-

(a) Loans advanced by the Central Government or the State Government to a sick textile undertaking (together with interest due thereon) after the management of such undertaking had been taken over by the Central Government under section 18AA of the Industries (Development and Regulation) Act, 1951 (Central Act 65 of 1951);

(b) amounts advanced to a sick textile undertaking (after the management of such undertaking had been taken over by the Central Government under the said section 18AA ) by the State Textile Corporation together with interest due thereon;

(c) wages, salaries and other dues of employees of the sick textile undertaking, in respect of any period after the 5062895/2021/IND (C) 156 management of such undertaking had been taken over by the Central Government under the said section 18AA, shall on and from the appointed day, be the liability of the State Government and shall be discharged, for and on behalf of that Government, by the State Textile 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-

(a) save as otherwise expressly provided in this section or in any other section of the Act, no liability, other than the liability specified in sub-action. (2), in relation to a sick textile undertaking in respect of any period prior to the appointed day, shall be enforceable against the State Government or the State Textile Corporation.

(b) no award, decree or order of any court, tribunal or other authority in relation to any sick textile undertakings passed after the appointed day 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 State Government or the State Textile Corporation.

(c) no liability of any sick textile undertaking or any owner thereof for the contravention, before the management of such undertaking had been taken over by the Central Government under Section 18 AA of the Industries (Development and Regulation) Act, 1951 (Central Act 65 of 1951), of any provision of a law for the time being in force, shall be enforceable against the State Government or the State Textile Corporation.

Where this provision sits

ActKerala Sick Textile Undertakings(Acquisition and Transfer of Undertakings) Act, 1985(27 of 1985)
Section5
Marginal noteOwner to the liable for certain prior liabilities
JurisdictionState of Kerala
StatusIn force as published by the source

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