The Central India Spinning, Weaving and Manufacturing Company Limited, The Empress Mills, Nagpur (Acquisition and Transfer of Undertaking) Act, 1986 5Chapter II · Acquisition and Transfer of the Undertaking

Section 5 · Proprietors to be liable for prior liabilities

(1)

Every liability of the proprietors in relation to the undertaking in respect of any period prior to the appointed day, shall be the liability of the proprietors and shall be enforceable against them and not against the State Government or against the Corporation or, where the undertaking is directed under section 6 to vest in a new Government company, against the new Government company.

(2)

For the removal of doubts, it is hereby declared that-

(a)

save as otherwise expressly provided in this section or in any other provision of this Act, no liability, shall be enforceable against the Sate Government or the Corporation, or, where the undertaking is directed under section 6 in any other new Government company, against such new Government company

(b)

no award, decree or order of any court, tribunal or other authority relation to the undertaking passed on or after the appointed day, in respect of a matter, claim or dispute, which arose before that day, shall be enforceable against the State Government or the Corporation or, where the undertaking is directed under section 6 to vest in any other new Government company, against such new Government company;

(c)

no liability incurred by the proprietors before the appointed day, for the contravention of any provision of any law for the time being in force, shall be enforceable against the State Government or the Corporation, or, where the undertaking is directed under section 6 to vest in any other new Government company, against such new Government company;

(d)

notwithstanding anything contained in sub-sections (1) and (2) of section 12 or any other provisions of this Act, or any other law-for the time being in force or any contract, agreement, settlement, award or decree or order of any court, tribunal or other authority, no liability towards claims of whatever nature of any employee against the proprietors in respect of his employment in the undertaking for the period prior to the appointed day shall be enforceable against the State Government or the Corporation, or where the undertaking is directed under section 6 to vest in any other new Government company, against such new Government company.

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