14. Employment of certain employees to continue.—(1) Every person who is a workman within the
meaning of the Industrial Disputes Act, 1947 (14 of 1947), and has been, immediately before the
appointed day, employed in a sick textile undertaking shall become, on and from the appointed day, an
employee of the National Textile Corporation, and shall hold office or service in the National Textile
Corporation with the same rights and privileges as to pension, gratuity and other matters as would have
been admissible to him if the rights in relation to such sick textile undertaking had not been transferred to,
and vested in, the National Textile Corporation, and shall continue to do so unless and until his
1. Ins. by Act 40 of 1995, s. 2 (w.e.f. 8-9-1995).
9
employment in the National Textile Corporation is duly terminated or until his remuneration, terms and
conditions of employment are duly altered by the National Textile Corporation.
(2) Every person who is not a workman within the meaning of the Industrial Disputes
Act, 1947 (14 of 1947), and who has been, immediately before the appointed day, employed in a sick
textile undertaking shall, in so far as such person is employed in connection with the sick textile
undertaking which has vested in the National Textile Corporation, become, as from the appointed day, an
employee of the National Textile Corporation and shall hold his office or service therein by the same
tenure, at the same remuneration and upon the same terms and conditions and with the same rights and
privileges as to pension and gratuity and other matters as he would have held the same under the sick
textile undertaking if it had not vested in the National Textile Corporation and shall continue to do so
unless and until his employment in the National Textile Corporation is duly terminated or until his
remuneration, terms and conditions of employment are duly altered by the National Textile Corporation:
Provided that in respect of any sick textile undertaking the management of which could not be taken
over by the Central Government under the Sick Textile Undertakings (Taking Over of Management)
Act, 1972 (72 of 1972), by reason of any decree, order or injunction of any court, any agent, director
(including a managing or whole-time director, by whatever name called) or manager shall not become an
employee of the National Textile Corporation.
(3) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947), or in any
other law for the time being in force, the transfer of the services of any officer or other person employed
in a sick textile undertaking to the National Textile Corporation shall not entitle such officer or other
employee to any compensation under this Act or any other law for the time being in force and no such
claim shall be entertained by any court, tribunal or other authority.
(4) Where, under the terms of any contract of service or otherwise, any person whose services
become terminated or whose services become transferred to the National Textile Corporation by reason of
the provisions of this Act is entitled to any arrears of salary or wages or any payment for any leave not
availed of or other payment, not being payment by way of gratuity or pension, such person may, except to
the extent such liability has been taken over by the Central Government under section 5, enforce his claim
against the owner of the sick textile undertaking but not against the Central Government or the National
Textile Corporation.
15. Provident and other funds.—(1) Where the owner of a sick textile undertaking has established a
provident fund, superannuation, welfare or other fund for the benefit of the persons employed in such sick
textile undertaking the monies relatable to the employees, whose services have become transferred by or
under this Act to the National Textile Corporation shall, out of the monies standing, on the appointed day,
to the credit of such provident fund, superannuation, welfare or other fund, stand transferred to, and shall
vest in, the National Textile Corporation.
(2) The monies which stand transferred, under sub-section (1), to the National Textile Corporation
shall be dealt with by that Corporation in such manner as may be prescribed.
16. Transfer of employees to a Subsidiary Textile Corporation.—Where any sick textile
undertaking or any part thereof is transferred under this Act to a Subsidiary Textile Corporation, every
person referred to in sub-section (1) and sub-section (2) of section 14 shall, on and from the date of such
transfer, become an employee of the Subsidiary Textile Corporation, and the provisions of sections 14
and 15 shall apply to such employee as they apply to an employee of the National Textile Corporation as
if references in the said sections to the National Textile Corporation were references to the Subsidiary
Textile Corporation.