[ 3-A. (1) Where the trade or business of any public utility service or any subsidiary undertaking has closed or is likely to be closed, the State Government, may, on the application of more than one-half of the total number of partners and owning between them more than fifty per cent share therein, by order, published in the Gazette, authorize any person to carry on the trade or business, for the period, in the manner and to the extent provided in the order ;
Provided that no such order shall be made unless the State Government is further satisfied that it is necessary for the maintenance of supplies and services essential to the life of the community or for maintaining employment ;
Provided further that the State Government may, from time to time, by order, published in the Gazette, extend the period specified in the order aforesaid.
(2) While a person authorized under sub-section (1) is carrying on the trade or business of the service or undertaking -
(a) such person shall be entitled to the management of the affairs of the service or undertaking to the exclusion of any other person acting or purporting to act on behalf of the firm, and for the purposes of such management shall be entitled to employ such staff or other agency as he thinks fit ;
(b) the partners or any other person shall not have the right to control or take part in the carrying on of the trade or business ;
(c) such person shall be deemed to be acting as the agent of the service or undertaking and subject only to such restrictions as the State Government may impose, shall have in relation to the management of the affairs of the service or undertaking all such powers and authority as the service or undertaking itself would have if its trade or business were not taken over under sub-section (1) ;
(d) such person shall not, in respect of such matters relating to the said management as may be specified by order of the State Government, be bound by any obligation or limitation imposed on him as agent of the service or undertaking by or under any law, instrument or contract ;
(e) such person shall be entitled to retain out of the assets of the service or undertaking all costs, charges and expenses of, or incidental to, the said management and such remuneration as may be fixed by the State Government.
(3) No person authorized under sub-section (1) to carry on the trade or business of any service or undertaking shall be personally liable for acts done by him in good faith in the course of management of such trade or business.
(4) Upon the publication of the order under sub-section (1), the State Government shall, by order, direct the partners, directors, secretary, manager or any other person in charge of the management of the said service or undertaking to handover the management of the trade or business of the said service or undertaking to the person mentioned in the said order.
(5) The Collector may, at the request of the person, authorized under sub-section (1), deliver charge of the service or undertaking to the said person and may take or cause to be taken such steps and use or cause to be used such force as may be necessary for this purpose.