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, in the employment of a 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 textile undertaking had not been transferred to, and
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.
(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, in the employment of a textile
undertaking shall, in so far as such person is employed in connection with the 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
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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 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.
(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 employee of a
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 textile undertaking but not against the Central Government or the National
Textile Corporation.
15. Provident and other funds.—(1) Where the owner of a textile undertaking has established a
provident fund, superannuation, welfare or other fund for the benefit of the persons employed in such
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 maybe prescribed.
16. Transfer of employees to a subsidiary textile corporation.—Where any 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.