Lawgist29DDebts incurred by the authorised person to have priority
1[29D. Debts incurred by the authorised person to have priority.--Every debt arising out of any loan obtained by the authorised person for carrying on the management of, or exercising function of control in relation to, an industrial undertaking or part thereof, the management of which has been taken over under section 18A or section 18AA or section 18FA,--
(a) shall have priority over all other debts, whether secured or unsecured, incurred before the management of such industrial undertaking was taken over;
(b) shall be a preferential debt within the meaning of section 530 of the Companies Act, 1956 (1 of 1956),
and such debts shall rank equally among themselves and be paid in full out of the assets of the industrial undertakings unless such assets are insufficient to meet them, in which case they shall abate in equal proportions.]
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1. Ins. by Act 72 of 1971, s. 8 (w.e.f. 1-11-1971).
- 1 Short title, extent and commencement
- 2 Declaration as to expediency of control by the Union
- 3 Definitions
- 4 [Omitted.]
- 5 Establishment and constitution of Central Advisory Council and its functions
- 6 Establishment and constitution of Development Councils and their functions
- 7 Reports and accounts of Development Councils
- 8 Dissolution of Development Councils
- 9 Imposition of cess on scheduled industries in certain cases
- 10 Registration of existing industrial undertakings
- 10A Revocation of registration in certain cases
- 11 Licensing of new industrial undertakings
- 11A Licence for producing or manufacturing new articles
- 11B Power of Central Government to specify the requirements which shall be complied with by small scale industrial undertakings
- 12 Revocation and amendment of licences in certain cases
- 13 Further provision for licensing of industrial undertakings in special cases
- 14 Procedure for the grant of licence or permission
- 15 Power to cause investigation to be made into scheduled industries or industrial undertakings
- 15A Power to investigate into the affairs of a company in liquidation
- 16 Powers of Central Government on completion of investigation under section 15
- 17 [Omitted.]
- 18 Power of person or body of persons appointed under section 15 to call for assistance in any investigation
- 18A Power of Central Government to assume management or control of an industrial undertaking in certain cases
- 18AA Power to take over industrial undertakings without investigation under certain circumstances
- 18B Effect of notified order under section 18A
- 18C Contracts in bad faith, etc., may be cancelled or varied
- 18D No right to compensation for termination of office or contract
- 18E Application of Act 7 of 1913
- 18F Power of Central Government to cancel notified order under section 18A
- 18FA Power of Central Government to authorise, with the permission of the High Court, persons to take over management or control of industrial undertakings
- 18FB Power of Central Government to make certain declarations in relation to industrial undertakings, the management or control of which has been taken over under section 18A, section 18AA or section 18FA
- 18FC Power of Central Government to call for report on the affairs and working of managed company
- 18FD Decision of Central Government in relation to managed Company
- 18FE Provisions where Government decides to follow the course of action specified in section 18FD (1)
- 18FF Provisions where Government decides to follow the course of action specified in section 18FD (2)
- 18FG Preparation of inventory of assets and liabilities and list of members and creditors of managed company
- 18FH Stay of suits and other proceedings
- 18G Power to control supply, distribution, price, etc., of certain articles
- 19 Powers of inspection
- 20 General prohibition of taking over management or control of industrial undertakings
- 21 Certain administrative expenses of Development Councils to be paid from moneys provided by Parliament
- 22 Power of the Central Government to issue directions to Development Council
- 23 Decision of Central Government final respecting certain matters
- 24 Penalties
- 24A Penalty for false statements
- 25 Delegation of powers
- 26 Power to issue directions
- 27 Cognizance of offences
- 28 Burden of proof in certain cases
- 29 Jurisdiction of courts
- 29A Special provision regarding fines
- 29B Power to exempt in special cases
- 29C Protection of action taken under the Act
- 29D Debts incurred by the authorised person to have priority
- 29E Validation
- 30 Power to make rules
- 31 Application of other laws not barred
- 32 [Repealed.]
