GOVERNMENT OF KERALA

Law (Legislation-Publication) Department

NOTIFICATION

No. 23461/Leg.Pbn.2/2014/Law.

Dated, Thiruvananthapuram, 12th November 2014.

The following Ordinance, promulgated by the President and published in

the Gazette of India, Extraordinary, Part II, Section I dated the 24th day of

October, 2014 is hereby republished for general information.

By order of the Governor,

C. P. RAMARAJA PREMA PRASAD,

Law Secretary.

Kerala Gazette No. 1 dated 6th January 2015.

PART I

Section i

G. 59 (a)/2014/DTP.

MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 24th October, 2014/Kartika 2, 1936 (Saka).

THE TEXTILE UNDERTAKINGS (NATIONALISATION) LAWS

(AMENDMENT AND VALIDATION) ORDINANCE, 2014

(NO. 6 OF 2014)

Promulgated by the President in the Sixty-fifth Year of the Republic

of India.

ORDINANCE

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

(57 of 1974) and the Textile Undertakings (Nationalisation) Act, 1995

(39 of 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 by the Board for Industrial and Financial Reconstruction

under the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986);

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;

AND WHEREAS Parliament is not in session and the President is satisfied

that circumstances exist which render it necessary for him to take immediate

action;

NOW, THEREFORE, in exercise of the powers conferred by clause (1) of

article 123 of the Constitution, the President is pleased to promulgate the

following Ordinance:—

CHAPTER I

PRELIMINARY

1. Short title and commencement.—(1) This Ordinance may be called the

Textile Undertakings (Nationalisation) Laws (Amendment and Validation)

Ordinance, 2014.

(2) It shall come into force at once.

CHAPTER II

AMENDMENT TO THE SICK TEXTILE UNDERTAKINGS

(NATIONALISATION) ACT, 1974

2. Amendment of section 3.—On and from the date of commencement of

the Sick Textile Undertakings (Nationalisation) Act, 1974 (57 of 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. Amendment of section 4.—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. Insertion of new section 41.—After section 40 of the principal Act, the

following section shall section be inserted, namely:—

“41. Validation.—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)

Ordinance, 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 Ordinance, 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)

Ordinance, 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

Ordinance, were in force at all material times;

(c) no suit or other proceedings shall, without prejudice to the

generality 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) Ordinance, 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 Ordinance,

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) Ordinance, 2014, shall be deemed to be

null and void and notwithstanding such transfer, continue to vest in

the National Textile Corporation under this Ordinance.”.

CHAPTER III

AMENDMENTS TO THE TEXTILE UNDERTAKINGS

(NATIONALISATION) ACT, 1995

5. Amendment of section 3.—On and from the date of commencement of

the Textile Undertakings (Nationalisation) Act, 1995 (39 of 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. Amendment of section 4.—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 purposes shall 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. Insertion of new section 39.—After section 38 of the principal Act, the

following section shall be inserted, namely:—

“39. Validation.—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)

Ordinance, 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 Ordinance, 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)

Ordinance, 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