Bare Acts

CHAPTER VII MISCELLANEOUS


24. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding
anything inconsistent therewith contained in any other law for the time being in force or in any instrument
having effect by virtue of any law, other than this Act, or in any decree or order of any court, tribunal or
other authority.
25. Assumption of liability.—(1) Where any liability of the Company in relation to any textile
undertaking arising out of any item specified in Part I of the Schedule is not discharged fully by the
Commissioner out of the amounts paid to him under this Act, the Commissioner shall intimate in writing
to the Central Government the extent of the liability which remains undischarged and that liability shall
be assumed by the Central Government.
(2) The Central Government may, by order, direct the National Textile Corporation to take over the
liability assumed by the Central Government under sub-section (1), and on receipt of such direction, it
shall be the duty of that Corporation to discharge such liability.
26. Contracts to cease to have effect unless ratified by National Textile Corporation.—Every
contract, entered into by the Company in relation to any textile undertaking which has vested in the
National Textile Corporation under sub-section (2) of section 3, for any service, sale or supply and in
force immediately before the appointed day, shall, on and from the expiry of a period of one hundred and
eighty days from the date on which the Ordinance was promulgated, cease to have effect unless such
contract is, before the expiry of that period, ratified in writing by the National Textile Corporation, and in
ratifying such contract, the National Textile Corporation may make such alterations or modifications
therein as it may think fit:
Provided that the National Textile Corporation shall not omit to ratify a contract and shall not make
any alteration or modification in a contract—
(a) unless it is satisfied that such contract is unduly onerous or has been entered into in bad faith
or is detrimental to the interests of the textile undertaking concerned, and
(b) except after giving the parties to the contract a reasonable opportunity of being heard and
except after recording in writing its reasons for refusal to ratify the contract or for making any
alteration or modification therein.
27. Penalties.—Any person who,—
(a) having in his possession, custody or control any property forming part of any of the textile
undertakings, wrongfully withholds such property from the National Textile Corporation; or
(b) wrongfully obtains possession of, or retains any property forming part of any of the textile
undertakings; or
(c) wilfully withholds or fails to furnish to the National Textile Corporation or any person or body
of persons specified by that Corporation, any document or inventory relating to any of the textile
undertakings which may be in his possession, custody or control; or
(d) wilfully fails to deliver to the National Textile Corporation any inventory or property and
assets forming part of any of the textile undertakings; or
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(e) fails to deliver to the National Textile Corporation or any person or body of persons specified
by that Corporation, any assets, books of account, registers or other documents in his possession,
custody or control relating to any of the textile undertakings; or
(f) wrongfully removes or destroys any property forming part of any of the textile undertakings or
prefers any claim under this Act which he knows or has reason to believe to be false or grossly
inaccurate,
shall be punishable with imprisonment for a term which may extend to two years and with fine which
may extend to ten thousand rupees.
28. Offences by companies.—(1) Where an offence under this Act has been committed by a
company, every person who, at the time the offence was committed, was in charge of, and was
responsible to, the company for the conduct of the business of the company, as well as the company, shall
be deemed to be guilty of the offence and shall be liable to be preceded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any
punishment, if he proves that the offence was committed without his knowledge or that he had exercised
all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act, has
been committed by a company and it is proved that the offence has been committed with the consent or
connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other
office of the company, such director, manager, secretary or other officer shall be deemed to be guilty of
that offence and shall be liable to be proceeded against and punished accordingly.
Explanation.—For the purposes of this section,—
(a) “company” means anybody corporate and includes a firm or other association of individuals;
and
(b) “director”, in relation to a firm, means a partner in the firm.
29. Protection of action taken in good faith.—(1) No suit, prosecution or other legal proceeding
shall lie against the Central Government or any officer of, or other person authorised by, that Government
or the National Textile Corporation or any Subsidiary Textile Corporation or any officer of, or other
person authorised by, such Corporation for anything which is in good faith done or intended to be done
under this Act.
(2) No suit or other legal proceeding shall lie against the Central Government or any officer of, or
other person authorised by, that Government, or the National Textile Corporation or any Subsidiary
Textile Corporation or any officer of, or other person authorised by, such Corporation for any damage
caused or likely to be caused by anything which is in good faith done or intended to be done under this
Act.
30. Delegation of powers.—(1) The Central Government may by notification, direct that all or any of
the powers exercisable by it under this Act, other than the powers conferred by this section and sections
31 and 32, may also be exercised by such person or persons as may be specified in the notification.
(2) Whenever any delegation of power is made under sub-section (1), the person to whom such power
has been delegated shall act under the direction, control and supervision of the Central Government.
31. Power to make rules.—(1) The Central Government may, by notification, make rules for
carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing powers, such rules may
provide for all or any of the following matters, namely:—
(a) the time within which, and the manner in which, an intimation referred to in sub-section (4) of
section 4 shall be given;
(b) the manner in which the moneys in any provident fund or other fund, referred to in
sub-section (2) of section 13 shall be dealt with;
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(c) any other matter which is required to be, or may be, prescribed.
(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it
is made, before each House of Parliament, while it is in session, for a total period of thirty days which
may be comprised in one session or in two or more successive sessions, and if, before the expiry of the
session immediately following the session or the successive sessions aforesaid, both Houses agree in
making any modification in the rule or both Houses agree that the rule should not be made, the rule shall
thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that
any such modification or annulment shall be without prejudice to the validity of anything previously done
under that rule.
32. Power to remove difficulties.—If any difficulty arises in giving effect to the provisions of this
Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the
difficulty:
Provided that no such order shall be made after the expiry of a period of two years from the date on
which the Ordinance was promulgated.
33. Repeal and saving.—(1) The Swadeshi Cotton Mills Company Limited (Acquisition and
Transfer of Undertakings) Ordinance, 1986 (5 of 1986), is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the Ordinance so repealed
shall be deemed to have been done or taken under the corresponding provisions of this Act.

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