THE TEXTILE UNDERTAKINGS (NATIONALISATION) LAWS

(AMENDMENT AND VALIDATION) ACT, 2014

NO. 36 OF 2014

[17th December, 2014.]

An Act further to amend the Sick Textile Undertakings (Nationalisation) Act, 1974 and the

Textile Undertakings (Nationalisation) Act, 1995, in order to continue with the lease-

hold rights vested in the National Textile Corporation on completion of the lease-hold

tenure.

WHEREAS the National Textile Corporation subserves the interests of the general public

and the land continue to be in possession of the said Corporation;

AND WHEREAS various other textile undertakings have been nationalised from time to

time and their assets vested absolutely in the Central Government and thereafter transferred

to the National Textile Corporation Limited by the Central Government free from all

encumbrances;

AND WHEREAS after the nationalisation of the textile undertakings, a large sum of money

have been invested with a view to making the said textile undertakings viable;

AND WHEREAs the Central Government has taken initiative to revive certain sick

undertakings including the National Textile Corporation under a revival scheme sanctioned

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MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 18th December, 2014/Agrahayana 27, 1936 (Saka)

The following Act of Parliament received the assent of the President on the

17th December, 2014, and is hereby published for general information:—

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

by the Board for Industrial and Financial Reconstruction under the Sick Industrial Companies

(Special Provisions) Act, 1985;

AND WHEREAS it is necessary for the proper and effective implementation of the revival

scheme and to protect the public investment in the acquired textile undertakings and to

explicitly clarify the status of such vesting of the lease-hold rights in the Central Government.

BE it enacted by Parliament in the Sixty-fifth Year of the Republic of India as follows:—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Textile Undertakings (Nationalisation) Laws

(Amendment and Validation) Act, 2014.

(2) It shall be deemed to have come into force with effect from the 24th October, 2014.

CHAPTER II

AMENDMENTS TO THE SICK TEXTILE UNDERTAKINGS (NATIONALISATION) ACT, 1974

2. On and from the date of commencement of the Sick Textile Undertakings

(Nationalisation) Act, 1974 (hereafter in this Chapter referred to as the principal Act), in

section 3, after sub-section (2), the following sub-sections shall be inserted and shall be

deemed to have been inserted, namely:—

“(3) Notwithstanding the transfer and vesting of any sick textile undertaking to

the National Textile Corporation by virtue of sub-section (2), the lease-hold rights of

the sick textile undertakings shall continue to remain vested in the Central Government

on payment of lease-hold rents and shall be discharged, for and on behalf of that

Government, by the National Textile Corporation as and when payment of such lease-

hold rents or any amount becomes due and payable.

(4) Subject to sub-section (3), no court shall have jurisdiction to order divestment

from the National Textile Corporation of the property vested in it by the

Central Government.”.

3. On and from the date of commencement of the principal Act, in section 4, after

sub-section (7), the following sub-sections shall be inserted and shall be deemed to have

been inserted, namely:—

“(8) Notwithstanding the fact that the textile operations have been discontinued

in any sick textile undertaking being revived, shall for all effects and purposes be

deemed that the textile operations are being continued and no suit or proceeding shall

be instituted or if instituted be maintainable against the National Textile Corporation

on the ground that it has discontinued such activity in the sick textile undertaking.

(9) For the removal of doubts, it is hereby declared that the continued deemed

vesting of the lease-hold land in the Central Government shall not affect, impair or in

any manner prejudice the rights of the National Textile Corporation to prosecute or

defend any proceedings as a subsequent vestee in respect of any such lease-hold

rights and no such proceedings shall fail only on account of the non-impleadment of

that Government.”.

4. After section 40 of the principal Act, the following section shall be inserted, namely:—

“41. Notwithstanding anything contained in any judgment, decree or order of

any court, tribunal or other authority,—

(a) the provisions of this Act, as amended by the Textile Undertakings

(Nationalisation) Laws (Amendment and Validation) Act, 2014, shall have and

shall be deemed always to have effect for all purposes as if the provisions of this

Act, as amended by the said Act, had been in force at all material times;

1 of 1986.

Short title

and com-

mencement.

57 of 1974.

Amendment

of section 3.

Amendment

of section 4.

Insertion of

new section 41.

Validation.

SEC. 1]

THE GAZETTE OF INDIA EXTRAORDINARY

(b) any lease-hold property divested from the National Textile Corporation

to any person under the provisions of this Act, as it stood immediately before

the commencement of the Textile Undertakings (Nationalisation) Laws

(Amendment and Validation) Act, 2014, shall stand transferred to and vest or

continue to vest, free from all encumbrances, in the National Textile Corporation

in the same manner as it was vested in the National Textile Corporation before

such divesting of that property under the provisions of this Act, as if the

provisions of this Act as amended by the aforesaid Act, were in force at all

material times;

of the foregoing provisions, be maintained or continued in any court or tribunal

or authority for the enforcement of any decree or order or direction given by

such court or tribunal or authority, notwithstanding any undertaking filed by

the National Textile Corporation in any court or tribunal or authority, directing

divestment of such lease-hold property from the National Textile Corporation

vested in it under section 3 of this Act, as it stood before the commencement of

the Textile Undertakings (Nationalisation) Laws (Amendment and Validation)

Act, 2014, and such lease-hold property shall continue to vest in the

National Textile Corporation under section 3 of this Act, as amended by the

aforesaid Act, as if the said section was in force at all material times;

(d) any transfer of any property, vested in the National Textile Corporation,

by virtue of any order of attachment, seizure or sale in execution of a decree of

a civil court or orders of any tribunal or other authority in respect of lease-hold

property vested in the National Textile Corporation which is contrary to the

provisions of this Act, as amended by the Textile Undertakings (Nationalisation)

Laws (Amendment and Validation) Act, 2014, shall be deemed to be null and void

and notwithstanding such transfer, continue to vest in the National Textile

Corporation under this Act.”.

CHAPTER III

AMENDMENTS TO THE TEXTILE UNDERTAKINGS (NATIONALISATION) ACT, 1995

5. On and from the date of commencement of the Textile Undertakings (Nationalisation)

Act, 1995 (hereafter in this Chapter referred to as the principal Act), in section 3, after

sub-section (2), the following sub-sections shall be inserted and shall be deemed to have

been inserted, namely:—

"(3) Notwithstanding the transfer and vesting of any textile undertaking to the

National Textile Corporation by virtue of sub-section (2), the lease-hold rights of the

textile undertakings shall continue to remain vested in the Central Government on

payment of lease-hold rents and shall be discharged, for and on behalf of

that Government, by the National Textile Corporation as and when payment of such

lease-hold rents or any amount becomes due and payable.

(4) Subject to sub-section (3), no court shall have jurisdiction to order divestment

from the National Textile Corporation of the property vested in it by the

Central Government.”.

6. On and from the date of commencement of the principal Act, in section 4, after

sub-section (7), the following sub-sections shall be inserted and shall be deemed to have

been inserted, namely:—

“(8) Notwithstanding the fact that the textile operations have been

discontinued in any textile undertaking being revived, shall for all effects and

Amendment

of section 3.

39 of 1995.

Amendment

of section 4.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

purposes be deemed that the textile operations are being continued and no suit or

proceeding shall be instituted or if instituted be maintainable against the

National Textile Corporation on the ground that it has discontinued such activity

in the textile undertaking.

(9) For the removal of doubts, it is hereby declared that the continued deemed

vesting of the lease-hold land in the Central Government shall not affect, impair or in

any manner prejudice the rights of the National Textile Corporation to prosecute or

defend any proceedings as a subsequent vestee in respect of any such lease-hold

rights and no such proceedings shall fail only on account of the non-impleadment of

that Government.”.

7. After section 38 of the principal Act, the following section shall be inserted, namely:—

"39. Notwithstanding anything contained in any judgment, decree or order of

any court, tribunal or other authority,—

(a) the provisions of this Act, as amended by the Textile Undertakings

(Nationalisation) Laws (Amendment and Validation) Act, 2014, shall have

and shall be deemed always to have effect for all purposes as if the provisions

of this Act, as amended by the said Act, had been in force at all material

times;

(b) any lease-hold property divested from the National Textile Corporation

to any person under the provisions of this Act, as it stood immediately before

the commencement of the Textile Undertakings (Nationalisation) Laws

(Amendment and Validation) Act, 2014, shall stand transferred to and vest or

continue to vest, free from all encumbrances, in the National Textile Corporation

in the same manner as it was vested in the National Textile Corporation before

such divesting of that property under the provisions of this Act as if the

provisions of this Act, as amended by the aforesaid Act, were in force at all