(1) Where any liability of the owner of a textile undertaking arising out of any item specified in category I of the Second Schedule is not discharged fully by the Commissioner out of the amount 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 any liability assumed by that Government under sub-section (1), and on receipt of such direction, it shall be the duty of the National Textile Corporation to discharge such liability.
Section 28 - Management to continue or vest in the Custodian until alternative arrangements are made
Notwithstanding the vesting, under this Act of a textile undertaking in the National Textile Corporation.
(a) the Custodian who has been managing the affairs of such undertaking before the date on which the Textile Undertakings (Nationalisation) Ordinance, 1995 was promulgated shall, until alternative arrangements have been made by the National Textile Corporation, continue to manage the affairs of such undertakings as if the Custodian had been authorised by the National Textile Corporation to manage the affairs of such undertaking: and
(b) the Custodian or any person authorised by him for this purpose shall until alternative arrangements have been made by the National Textile Corporation continue to be authorised to operate, in relation to the textile undertaking, any account of such undertaking in a bank as if such Custodian or the person authorised by the Custodian had been authorised by the National Textile Corporation to operate such account.
Section 29 - Act to override all other enactments
The provisions of this Act, shall have effect not with standing anything inconsistent therewith contained in any other law for the lime 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 authority.
Section 30 - Contracts to cease to have effect unless ratified by the National Textile Corporation
(1) Every contract entered into by the owner or occupier of any textile undertaking for any service, sale or supply and in force immediately before the appointed day shall, on and from the expiry of one hundred and twenty days from the date on which the Textile Undertakings (Nationalisation) Ordinance, 1995 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, unless it is satisfied that such contract is unduly onerous or has been entered into in bad faith or is detrimental to the interest of the textile undertaking.
(2) The National Textile Corporation shall not omit to ratify a contract or make any alteration or modification therein except after giving to 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.
Section 31 - Penalties
Any person who,
(a) having in his possession custody or control any property forming part of a textile undertaking, wrongfully withholds such property from the Central Government or the National Textile Corporation or any person authorised by that government or Corporation, as the case may be, in this behalf; or
(b) wrongfully obtain possession of, or retains, any property forming part of the textile undertaking or wilfully withholds or fails to furnish to the Central Government the National Textile Corporation or any person specified by that Government, or Corporation, as the case may be, any document relating to such textile undertaking which may be in his possession, custody or control or fails to deliver to the National Textile Corporation or any person specified by that Corporation any assets, books of account, registers or other documents in his custody relating lo the textile undertaking, or
(c) wrongfully removes or destroys any property forming part of any textile undertaking or prefers any claim under this Act which he knows or has reasonable cause to believe to be false or grossly inaccurate,
shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to ten thousand rupees, or with both.
Section 32 - Offences by companies
(1) Where an ofence 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 proceeded 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 Officer 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 any body corporate and includes a firm or other association of individuals; and
(b) "director", in relation to a firm, means a partner in the firm.
Section 33 - Protection of action taken in good faith
No suit, prosecution or other legal proceeding shall lie against the Central Government or any Officer of that Government or the Custodian or the National Textile Corporation or any subsidiary textile corporation or any Officer or other person authorised by either of such Corporation for any thing which is in good faith done or intended to be done under this Act.
Section 34 - Textile companies not to be wound up by the Court
No proceeding for the winding up of a textile company, the right, title and interest in relation to the textile undertaking owned by which have vested in the National Textile Corporation under this Act or for the appointment of a receiver in respect of the business of the textile undertaking shall lie or be proceeded with in any Court except with consent of the Central Government.
Section 35 - Delegation of powers
(1)The Central Government may, by notification, direct that all or any of the powers exercisable by it unde this Act, other than the power under section 36 may also be exercised by any 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.
Section 36 - Power to make rules
(1) The Central Government may, by notification, make rules to carry out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, 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 monies in any provident or other fund referred to in section 15 shall be dealt with;
(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 any anything previously done under that rule.
Section 37 - Power to remove difficulties
(1) 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 Textile Undertakings (Nationalisation) Ordinance, 1995 was promulgated.
(2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.
Section 38 - Repeal and saving
(1) The Textile Undertakings (Nationalisation) Ordinance, 1995, is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act.