Proprietors to be liable for prior liabilities.

§5

Summary

(1) Every liability other than the liability specified in sub-section (2), of the proprietors 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 that new Government company. (2) Any liability in respect of materials supplied to the undertaking or of loans advanced to it or of any other nature, arising out of the transactions entered into by the Corporation after the management of the undertaking had been taken over by the Central Government shall, on and from the appointed day, be the liability of the Corporation, and shall, if it has remained undischarged on the appointed day, be discharged by the Corporation. (3) 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, other than the liability specified in sub-section (2), of the proprietors in respect of any 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 ; (b) no award, decree or order of any Court, tribunal or other authority in relation to the undertaking passed on or after the appointed day, in respect of any matter, claim or dispute, not being a matter, claim or dispute in relation to any matter referred to in sub-section (2), 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-section (1) 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 date of taking over the undertaking by the Central Government for management under the provisions of the Industries (Development and Regulation) Act, 1951 (LXV of 1951), shall be enforceable against the State Government or the Corporation.

(1) Every liability other than the liability specified in sub-section (2), of the proprietors 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 that new Government company. (2) Any liability in respect of materials supplied to the undertaking or of loans advanced to it or of any other nature, arising out of the transactions entered into by the Corporation after the management of the undertaking had been taken over by the Central Government shall, on and from the appointed day, be the liability of the Corporation, and shall, if it has remained undischarged on the appointed day, be discharged by the Corporation. (3) 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, other than the liability specified in sub-section (2), of the proprietors in respect of any 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 ; (b) no award, decree or order of any Court, tribunal or other authority in relation to the undertaking passed on or after the appointed day, in respect of any matter, claim or dispute, not being a matter, claim or dispute in relation to any matter referred to in sub-section (2), 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-section (1) 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 date of taking over the undertaking by the Central Government for management under the provisions of the Industries (Development and Regulation) Act, 1951 (LXV of 1951), shall be enforceable against the State Government or the Corporation.

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