JUTE COMPANIES (NATIONALISATION) ACT 1980

THE JUTE COMPANIES (NATIONALISATION) ACT, 1980

ACT No. 62 OF 1980

21st December, 1980

An Act to provide for the acquisition and transfer of theundertakings of the Jute Companies, specified in the First Schedule with a viewto securing the proper management of such undertakings so as to subserve theinterest of the general public by ensuring the continued manufacture,production and distribution of articles, made of jute, which are essential tothe needs of the economy of the country and for matters connected therewith orincidental thereto

WHEREAS the said Jute Companieshas been engaged in the manufacture and production of articles mentioned in theFirst Schedule to the Industries (Development and Regulation) Act, 1951(65 of1951), namely, textiles made wholly or in part of jute;

AND WHEREAS the management ofthe undertakings of each of the said jute companies was taken over by theCentral Government under the Industries (Development and Regulation) Act,1951(65 of 1951);

AND WHEREAS it is necessary toacquire the undertakings of the said jute Companies to ensure that theinterests of the general public are served by the continuance, by theundertakings of the said jute companies, of the manufacture, production anddistribution of the aforesaid articles which are essential to the needs of theeconomy of the country;

Be it enacted by Parliament inthe Thirty–fifth Year of the Republicof India as follows: –

CHAPTER I

PRELIMINARY

1.Short title: This Act may be called theJute Companies (Nationalisation) Act, 1980.

2.Definitions: In this, Act, unless thecontext otherwise requires, –

(a) "appointed day"means the date of commencement of this Act;

(b) "Commissioner"means the Commissioner of Payments appointed under section 14;

(c) "jute companies"means the companies (being companies as defined in the Companies Act, 1956(1 of1956)) specified in the First Schedule;

(d) "Jute ManufacturesCorporation" means the National Jute Manufactures Corporation Limited, acompany incorporated and registered under the Companies Act, 1956(1 of 1956);

(e) "notification"means a notification published in the Official Gazette;

(f) "prescribed"means prescribed by rules made under this Act;

(g) "specified date",in relation to any provision of this Act, means such date as the CentralGovernment may, by notification, specify for the purposes of that provision,different dates may be specified for different provisions of this Act;

(h) words and expressions usedherein and not defined but defined in the Companies Act, 1956(1 of 1956), shallhave the meanings respectively assigned to them in that Act.

CHAPTER II

ACQUISITION AND TRANSFER OF THE UNDERTAKINGS OF THE JUTE COMPANIES

3.Transfer to, and vesting in,the Central Government of the undertakings of the jute companies: On the appointed day, theundertakings of each of the jute companies, and the right, title and interestof each of the jute companies in relation to its undertakings, shall, by virtueof the Act, stand transferred to, and shall vest in, the Central Government.

4.General Power of vesting: (1) The undertakings of eachof the jute companies shall be deemed to include all assets, rights, lease–holds,powers, authorities and privileges, and all property, movable and immovable,including lands, buildings, workshops, stores, instruments, machinery andequipment, cash balances, cash on hand, reserve funds, investments, book debts,and all other rights and interests in, or arising out of such, property as wereimmediately before the appointed day in the ownership, possession power orcontrol of jute company, whether within or outside India, and all books ofaccount, registers and all other documents of whatever nature relating theretoand shall also be deemed to include the liabilities specified in sub–section(2) of section 5.

(2) All properties as aforesaidwhich have vested in the Central Government under section 3 shall, by force ofsuch vesting, be freed and discharged from any trust, obligation, mortgage,charge, lien and all other incumbrances affecting them, and any attachment,injunction, decree or order of any court, tribunal or other authorityrestricting the use of such properties in any manner or appointing any receiverin respect of the whole or any part of such properties shall be deemed to havebeen withdrawn.

(3) Every mortgagee of anyproperty which has vested under this Act in the Central Government and everyperson holding any charge, lien or other interest in, or in relation, to, anysuch property shall give, within such time and in such manner as may beprescribed, an intimation to the Commissioner of such mortgage, charge, lien orother interest.

(4) For the removal of doubts,it is hereby declared that the mortgagee of any property referred to in sub–section(3) or any other person holding any charge, lien or other interest in, or inrelation to , any such property shall be entitled to claim, in accordance withhis rights and interest, payment of the mortgage money or other dues, in wholeor in part, out of the amounts directed to be given under sections 7 and 8 tothe jute company concerned but no such mortgage, charge, lien or other interestshall be enforceable against any property which has vested in the CentralGovernment.

(5) Any licence or otherinstrument granted to either of the jute company in relation to itsundertakings which has vested in the Central Government under section 3 at anytime before the appointed day and in force immediately before that day shallcontinue to be in force on and after such day in accordance with its tenor inrelation to an for the purposes of such undertakings, and , on and from thedate of vesting of such undertaking under section 6 in the Jute ManufacturesCorporation, that Corporation shall be deemed to be substituted in such licenceor other instrument as if such licence or other instrument had been granted tosuch Corporation and such Corporation shall hold it for the remainder of theperiod for which the jute company would have held it under the terms thereof.

(6) If, on the appointed day,any suit, appeal or other proceeding of whatever nature, in relation to anymatter specified in sub–section (2) of section 5, in respect of theundertakings of any jute company which has vested in the Central Governmentunder section 3, instituted or preferred by or against that company is pending,the same shall not abate, be discontinued or be, in any way, prejudiciallyaffected by reason of the transfer of the undertakings of such jute company orof anything contained in this Act, but the suit, appeal or other proceeding maybe continued, prosecuted or enforced by or against the Central Government, orwhere the undertakings of the jute company are directed under section 6 to vestin the Jute Manufactures Corporation, by or against that Corporation.

5.Jute companies to be liablefor certain prior liabilities: (1) Every liability, other than the liability specified in sub–section(2), of a jute company in respect of any period prior to the appointed day,shall be the liability of that company and shall be enforceable against it andnot against the Central Government, or, where the undertakings of the jutecompany vest in the Jute Manufactures Corporation, by or against thatCorporation.

(2) Any liability arising inrespect of loans advanced by the Central Government or any State Government, orboth, to a jute company (together with interest due thereon) after themanagement of its undertakings of the said jute company had been taken over bythe Central Government, shall, on and from the appointed day, be the liabilityof the Central Government and shall be discharged by that Government or, by theJute Manufactures Corporation, as and when repayment of such loans becomes dueand payable.

(3) for the removal of doubts,it is hereby declared that –

(a) save as otherwise expresslyprovided in this Act, no liability, other than the liability specified in sub–section(2),

of any jute company in relationto its undertakings in respect of any period prior to the appointed day shallbe enforceable against the Central Government, or, where the undertakings ofthe such company are director under section 6, to vest in the Jute ManufacturesCorporation, against that Corporation.

(b) no award, decree or orderof any court, tribunal or other authority in relation to the undertakings ofany jute company, passed on or after the appointed day, in respect of anymatter, claim or dispute, which arose before that day, not being a matter,claim or dispute in relation to any liability specified in sub–section(2) shall be enforceable against the Central Government or where theundertakings of such company are directed under section 6, to vest in the JuteManufactures Corporation, against that Corporation.

(c) no liability incurred byany jute company before the appointed day, for the contravention of anyprovision of law for the time being in force, shall be enforceable against theCentral Government, or, where the undertakings of such company are directedunder section 6, to vest in the Jute Manufactures Corporation, against that Corporation.

6.Power of Central Governmentto direct vesting of the undertakings of the jute companies in JuteManufactures Corporation: (1) Notwithstanding anything contained in section 3 and 4, theCentral Government shall, as soon as may be, after the appointed day, direct,by notification, that the undertakings of every jute company and the right,title and interest of every jute company in relation to its undertakings, whichhave vested in the Government under section 3, and such of the liabilities of everyjute company as or specified in sub–section (2) of section 5, shall,instead of continuing to vest in the Central Government, vest in the JuteManufactures Corporation either on the date of the notification or on suchearlier or later date (not being a date earlier than the appointed day) as maybe specified in the notification.

(2) Where the right, title andinterest of the liabilities referred to in sub–section (2) of Section 5,of the jute company, in relation to their respective undertakings vest, undersub–section (1), in the Jute Manufactures Corporation, that GovernmentCorporation shall, on and from the date of such vesting, be deemed to havebecome the owner in relation to such undertakings shall on and from the date ofsuch vesting, be deemed to have become the rights and liabilities,respectively, of the Jute Manufactures Corporation.

CHAPTER III

PAYMENT OF AMOUNTS

7.Payment of amount: Every jute company shall begiven by the Central Government, for the transfer to, and vesting, in that CentralGovernment, under section 3, of the undertakings of that company and the right,title and interest of that company in relation to its undertakings, in cash andin the manner specified in Chapter VI, such amount as is specified against thename of that company in the First Schedule.

8.Payment of further amounts: (1) Every jute company shallbe given by the Central Government, for the deprivation of the management ofits undertakings, an amount of rupee ten thousand per annum for the periodcommencing on the date on which management of the undertaking of that companywas taken over in pursuance of the orders made by the Central Government underthe provisions of the Industries (Development and Regulation) Act, 1951(65 of1951) and ending on the appointed day.

(2) Every amount specified inthe First Schedule or calculated in accordance with the provisions of sub–section(1) shall carry simple interest at the rate of four percent per annum for theperiod commencing on the appointed day and ending on the date on which paymentof such amounts is made by the Central Government to the Commissioner.

(3) The amount determined inrelation to any jute company in accordance with the provisions of sub–section(1) and (2) shall be given by the Central Government to the jute company inaddition to the amount specified in the First Schedule against that company.

CHAPTER IV

MANAGEMENT, ETC, OF THE UNDERTAKINGS OF THE JUTE COMPANIES

9.Management, etc., of theunder takings of the jute companies: The general superintendence, direction, control andmanagement of the affairs and business of the undertakings owned by each of thejute companies, the right, title and interest in relation to which have vestedin the Central Government under section 3 shall, where a direction has beenmade by the Central Government under sub–section (1) of section 6 vestin the Jute Manufactures Corporation and thereupon the Jute ManufacturesCorporation shall be entitled to exercise, to the exclusion of all otherpersons, all such powers and do all such things in relation to each suchundertaking as the jute company which owned it was authorised to exercise anddo immediately before the appointed day.

10.Duty of persons in charge ofmanagement of the undertakings to deliver all assets etc.: (1) On the vesting of themanagement of the undertakings of the jute companies in the Central Governmentor the Jute Manufactures Corporation, as the case may be, the persons in chargeof the management of such undertakings immediately before such vesting shall bebound to deliver to the Central Government or the Jute ManufacturesCorporation, as the case may be all assets books of account registers and allother documents in their custody relating to such undertakings

(2) The Central Government mayissue such directions as it may deem desirable in the circumstances of the caseto the Jute Manufactures Corporation and the said Corporation may also if it isconsidered necessary so to do apply to the Central Government at any time forinstructions as the manner in which the management of the undertakings of thejute companies shall be conducted or in relation to any other matter arising inthe course of such management.

11.Duty of persons to accountfor assets, etc., in their possession: (1) Any person who has, on the appointed day, in hispossession or under his control any assets, books, documents or other papersrelating to the undertakings owned by a jute company which has vested in theCentral Government or the Jute Manufactures Corporation under this Act, shallbe liable to account for the said assets, books, documents and other papers tothe Central Government or the existing, or the Jute Manufactures Corporationand shall deliver them to the Central Government or the existing, or the JuteManufactures Corporation or to such person or persons as the Central Governmentor the Jute Manufactures Corporation.

(2) The Central Government orthe Jute Manufactures Corporation may take, or cause to be taken, all necessarysteps for securing possession of the undertakings of the jute companies whichhave vested in the Central Government or the Jute Manufactures Corporationunder this Act.

(3) Every jute companies shall,within such period as the Central Government may allow in this behalf, furnishto that Government a complete inventory of all their property and assets, as onthe appointed day, pertaining to the undertakings which have vested in theCentral Government under section 3, and, for this purpose, the CentralGovernment or the Jute Manufactures Corporation shall afford to such companyall reasonable facilities.

CHAPTER V

PROVISIONS RELATING TO EMPLOYEES OF THE TWO COMPANIES

12.Continuance of employees: (1) Every person who has been,immediately before the appointed day, employed in any undertaking of any of thecompanies shall become, –

(a) on and from the appointedday, an employee of the Central Government, and

(b) Where the undertakings ofthe jute companies are vested in the Jute Manufactures Corporation, an employeeof the said Corporation, on and from the date of such vesting,

and shall hold office orservice under the Central Government or the existing, or the Jute ManufacturesCorporation as the case may be with the same right and privileges as topension, gratuity and other matters, admissible to him if there had been nosuch vesting and shall continue to do so unless and until his employment underthe Central Government or the Jute Manufacture Corporation, as the case may be,is duly terminated or until his remuneration and other conditions of serviceare duly altered by the Central Government or the existing, or, the JuteManufactures Corporation, as the case may be.

(2) Notwithstanding anythingcontained in the Industrial Disputes Act, 1947(14 of 1947), or in any other lawfor the time being in force, the transfer of the services of any officer orother person employed in any undertaking of either of the jute companies, tothe Central Government or Jute Manufactures Corporation, shall not entitle suchofficer or other employee to any compensation under this Act or any other lawfor the time being in force and no such claim shall be entertained by anycourt, tribunal or other authority.

13.(1) Where a jute companies has established aprovident fund, superannuation, welfare or other fund for the benefit of thepersons employed in any of its undertakings, the moneys relatable to itsemployees whose services have become transferred by or under this Act to theCentral Government or the Jute Manufactures Corporation shall, out of themonies standing, on the appointed day, to the credit of such provident fund,superannuation, funds welfare funds or other fund, stand transferred to , andshall vest in, the Central Government or the Jute Manufactures Corporation, asthe case may be.

(2) The monies which standtransferred under sub–section (1) to the Central Government or the JuteManufactures Corporation, as the case may be, shall be dealt with by thatGovernment or Corporation in such manner as may be prescribed.

CHAPTER VI

COMMISSIONER OF PAYMENTS

14.Appointment of Commissionerof Payments: (1) TheCentral Government shall, for the purpose of disbursing the amounts payableunder sections 7 and 8 to the jute companies, by notification, appoint aCommissioner of Payments.

(2) The Central Government may appointsuch other persons as it may think fit to assist the Commissioner and thereuponthe Commissioner may authorise one or more of such persons also to exercise allor any of the powers exercisable by him under this Act and different personsmay be authorised to exercise different powers.

(3) Any person authorised bythe Commissioner to exercise any of the powers exercisable by the Commissionermay exercise those powers in the same manner and with the same effect as ifthey have been conferred on that person directly by this Act and not by way ofauthorisation.

(4) The salaries and allowancesof the Commissioner and other persons appointed under this Section shall bedefrayed out of the Consolidated Fund of India.

15.Payment by CentralGovernment to the Commissioner: (1) The Central Government shall, within thirty days from thespecified date, pay in cash to the Commissioner, for payment to each of thejute company, –

(a) an amount equal to theamount specified against the name of such company in the First Schedule;

(b) a further amount equal tothe amount specified against the name of that company under section 8.

(2) A deposit account shall beopened by the Central Government in favour of the Commissioner in the PublicAccount of India and every amount paid under this Act to the Commissioner shallbe deposited by him to the credit of the said deposit account and the saiddeposit account shall be operated by the Commissioner.

(3) Separate records shall bemaintained by the Commissioner in respect of each of the jute companies inrelation to which payments have been made to him under this Act.

(4) Interest accruing on theamount in relation to a jute company standing to the credit of the depositaccount referred to in sub–section (2) shall ensure to the benefit ofthe jute company.

16.Certain powers of CentralGovernment or existing, or new, The Jute Manufactures Corporation: (1) The Central Government orthe Jute Manufactures Corporation, as the case may be, shall be entitled toreceive up to the specified date, to the exclusion of all other persons, anymoney due to the jute companies in relation to its undertakings which havevested in the Central Government or the Jute Manufactures Corporation, andrealised after the appointed day notwithstanding that the realisation pertainsto a period prior to the appointed day.

(2) The Central Government, orthe Jute Manufactures Corporation, as the case may be, may make a claim to theCommissioner with regard to every payment made by that Government or Corporation,after the appointed day, for discharging any liability of a jute company, notbeing any liability specified in sub–section (2) of section 5, inrelation to any of the undertakings owned by it in respect of any period priorto the appointed day, and every such claim shall have priority, in accordancewith the priorities attaching, under this Act, to the matter in relation towhich such liability has been discharged by the Central Government or the JuteManufactures Corporation.

(3) Save as otherwise providedin this Act, the liabilities of a jute companies in relation to any of theundertakings owned by it in respect of any transaction prior to the appointedday which have not been discharged on or before the specified date shall be theliabilities of that company.

17.Claims to be made to theCommissioner: Everyperson having a claim against a jute companies with regard to any of thematters specified in the Second Schedule pertaining to any undertakings ownedby it, shall prefer such claim before the Commissioner within thirty days fromthe specified ¹ date.

Provided that if theCommissioner is satisfied that the claimant was prevented by sufficient causefrom preferring the claim within the said period of thirty days, be mayentertain the claim within a further period of thirty days but not thereafter.

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1.2.1982 – Vide notificationNo.S.o.43 (E), dated 22.1.1982, Government of India, Exty. PT II,Section 3.(ii), p.72.

18.Priority of claims: The claims made under section17 shall have priorities in accordance with the following principles, namely: –

(a) Category I shall haveprecedence over all other categories and Category II shall have precedence overCategory III, and so on;

(b) the claims specified ineach of the categories shall rank equally and be paid in full, but, if theamount paid to the Commissioner under the Act is insufficient to meet suchclaims in full, they shall abate in equal proportions and be paid accordingly;and

(c) the question of dischargingany liability with regard to a matter specified in a lower category shall ariseonly if a surplus is left after meeting all the liabilities specified in theimmediately higher category.

19.Examination of claims: (1) On receipt of the claimsmade under section 17, the Commissioner shall arrange the claims in the orderof priorities specified in the Second Schedule and examine the same inaccordance with such order.

(2) If, on examination of theclaims against a jute company, the Commissioner is of opinion that the amountpaid to him under this Act for payment to such company is not sufficient tomeet the liabilities specified in any lower category, he shall not be requiredto examine the claims in respect of such lower category.

20.Admission or rejection ofclaims: (1) After examining the claimsagainst a jute company, with reference to the priorities specified in theSecond Schedule, the Commissioner shall fix a date on or before which everyclaimant against the company shall file the proof of his claim.

(2) Not less than fourteendays’ notice of the date so fixed shall be given by advertisement in one issueof any daily newspaper in the English language having circulation in the majorpart of the country and in one issue of any daily newspaper in such regionallanguage as the Commissioner may consider suitable, and every such notice shallcall upon the claimant to file the proof of his claim with the Commissionerwithin the period specified in the advertisement.

(3) Every claimant who fails tofile the proof of his claim within the period specified by the Commissionershall be excluded from the disbursement made by the Commissioner.

(4) The commissioner shall,after such investigation as may, in his opinion, be necessary and after givingthe jute company concerned company an opportunity of refuting the claim andafter giving the claimant a reasonable opportunity of being heard, by order inwriting , admit or reject the claim in whole or in part.

(5) The Commissioner shall havethe power to regulate his own procedure in all matters arising out of thedischarge of his functions including the place or places at which he may holdhis sittings and shall, for the purpose of making any investigation under thisAct, have the same powers as are vested in a civil court under the Code ofCivil Procedure, 1908(5 of 1908), while trying a suit, in respect of thefollowing matters, namely : –

(a) the summoning and enforcingthe attendance of any witness and examining him on oath;

(b) the discovery andproduction of any document or other material object producible as evidence;

(c) the reception of evidenceon affidavits;

(d) the issuing of anycommission for the examination of witnesses.

(6) Any investigation beforethe Commissioner shall be deemed to be a judicial proceeding within the meaningof sections 193 and 228 of the Indian Penal Code(45 of 1860) and theCommissioner shall be deemed to be a civil court for the purposes of section195 and Chapter XXVI of the Code of Criminal Procedure, 1973(2 of 1974).

(7) A claimant who is dissatisfiedwith the decision of the Commissioner may prefer an appeal against suchdecision to the High Court within the local limits of whose jurisdiction theregistered office of the jute company concerned is situated:

Provided that where a personwho is a Judge of a High Court is appointed to be the Commissioner, suchappeal, shall be heard and disposed of by not less than two Judges of that HighCourt.

21.Disbursement of money byCommissioner: Afteradmitting a claim against a jute company under this Act, the amount due inrespect of such claim shall be paid by the Commissioner to the person orpersons to whom such amount is due, and on such payment, the liability of suchjute company in respect of such claim shall stand discharged.

22.Disbursement of amounts tothe companies: (1) If,out of the monies paid to him in relation to a jute company, there is a balanceleft after meeting the liabilities as specified in the Second Schedule, theCommissioner shall disburse such balance to such jute company.

(2) Where the possession of anymachinery, equipment or other property possessed by a jute company has vestedin the Central Government or the Jute Manufactures Corporation under this Act,but such machinery, equipment or other property does not belong to such jutecompany, it shall be lawful for the Central Government or as the case may be,the Jute Manufactures Corporation, to continue to possess such machinery orequipment or other property on the same terms and conditions under which theywere possessed by such jute company immediately before the appointed day.

23.Undisbursed or unclaimedamount to be deposited with the general revenue account: Any money paid to theCommissioner which remains undisbursed or unclaimed on the date immediatelypreceding the date on which the office of the Commissioner is finally wound up,shall be transferred by the Commissioner, before his office is finally wouldup, to the general revenue account of the Central Government; but a claim toany money so transferred may be preferred to the Central Government by theperson entitled to such payment and shall be dealt with as if such transfer hadnot been made, and the order, if any, for the payment of the claim beingtreated as an order for the refund of revenue.

CHAPTER VII

MISCELLANEOUS

24.Act to have overridingeffect: The provisions of this Actshall have effect notwithstanding anything inconsistent therewith contained inany other law for the time being in force or in any instrument having effect byvirtue of any law, other than this Act, or in any decree or order of any court,tribunal or other authority.

25.Assumption of liability: (1) Where any liability of ajute company arising out of any item in any category specified in Part I of theSecond Schedule is not discharged fully by the Commissioner out of the amountspaid to him under this Act, the Commissioner shall intimate in writing to theCentral Government the extent of the liability which remains undischarged andthat liability shall be assumed by the Central Government.

(2) The Central Government may,by order, direct the Jute Manufactures Corporation to take over the liabilityassumed by the Central Government under sub–section (1), and on receiptof such direction, it shall be the duty of the Jute Manufactures Corporation todischarge such liability.

26.Management to continue tovest in certain persons until alternative arrangements have been made: Notwithstanding the vestingunder this Act of the Undertakings of any jute company in the CentralGovernment or the Jute Manufactures Corporation–

(a) any person who has beenmanaging the affairs of such undertakings before the date on which theundertakings had so vested shall, until alternative arrangements have been madeby the Central Government or, as the case may be, the Jute ManufacturesCorporation, for he management of such undertakings, continue to manage theaffairs of the undertakings, or, as the case may be, the Jute ManufacturesCorporation, to manage such undertakings;

(b) such person shall, untilalternative arrangements have been made by the Central Government, or, as thecase may be, the Jute Manufactures Corporation, continue to be authorised tooperate, in relation to the undertakings of such jute company, any account ofsuch undertakings in any bank as if he had been authorised by the CentralGovernment or the Jute Manufactures Corporation to operate such account.

27.Contracts to cease to haveeffect unless ratified by the Central Government or Jute ManufacturesCorporation: Everycontract entered into by any jute company in relation to any of the undertakingowned by it, which has vested in the Central Government under section 3 for anyservice, sale or supply, and in force immediately before the appointed day,shall, on and from the expiry of a period of one hundred and eighty days fromthe appointed days, cease to have effect unless such contract is, before theexpiry of that period, ratified, in writing, by the Central Government or theJute Manufactures Corporation and in ratifying such contract, the CentralGovernment or the Jute Manufactures Corporation may make such alteration ormodification therein as it may think fit:

Provided that the CentralGovernment or the Jute Manufactures Corporation shall not omit to ratify acontract and shall not make any alteration or modification in a contract–

(a) unless it is satisfied thatsuch contract is unduly onerous, or has been entered into in bad faith, or isdetrimental to the interest of the Central Government or the Jute ManufacturesCorporation; and

(b) except after giving theparties to the contract a reasonable opportunity of being heard and exceptafter recording in writing its reasons for refusal to ratify the contract orfor making any alteration or modification therein.

28.Penalties: Any person who–

(a) having in his possession,custody or control any property forming part of the undertaking owned by anyjute company, wrongfully withholds such property from the Central Government orthe Jute Manufactures Corporation; or

(b) wrongfully obtainspossession of or retains, any property forming part of any undertaking owned byany jute company; or

(c) wilfully withholds or failsto furnish to the Central Government or the Jute Manufactures Corporation orany person or body of persons specified by that Government or Corporation, asthe case may be, any document or inventory relating to such undertaking, ownedby any jute company, which may be in his possession, custody or control; or

(d) fails to deliver to theCentral Government or the Jute Manufactures Corporation, or any person or bodyof persons specified by that Government or Corporation, any assets, books ofaccount, registers or other documents in his possession custody orcontrol, relating to the undertakings of either of the jute company; or

(e) wrongfully removes ordestroys any property forming part of any undertaking owned by any jute companyor prefers any claim which he knows or has reason to believe to be false orgrossly inaccurate.

shall be punishable withimprisonment for a term which may extend to two years, or with fine which mayextend to ten thousand rupees.

29.Offences by companies: (1) Where an offencepunishable under this Act has been committed by a company, every person who, atthe 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 thecompany, shall be deemed to be guilty of the offence and shall be liable to beproceeded against and punished accordingly:

Provided that nothing containedin this sub–section shall render any such person liable to anypunishment, if he proves that the offence was committed without his knowledgeor that he had exercised all due diligence to prevent the commission of suchoffence.

(2) Notwithstanding anythingcontained in sub–section (1), where any offence under this Act has beencommitted by a company and it is proved that the offence has been committedwith the consent or connivance of, or is attributable to any neglect on thepart of, any director, manager, secretary or other officer of the company, suchdirector, manager, secretary or other Officer shall be deemed to be guilty ofthat offence and shall be liable to be proceeded against and punishedaccordingly.

Explanation: For thepurpose of this section, –

(a) "company" meansany body corporate and includes a firm or other association of individuals; and

(b) "director", inrelation to a firm, means a partner in the firm.

30.Protection of action takenin good faith: (1) Nosuit, prosecution or other legal proceeding shall lie against the CentralGovernment or any officer of that Government or the Jute ManufacturesCorporation or any person authorised by that Government or Corporation foranything which is in good faith done or intended to be done under this Act.

(2) No suit, or other legalproceeding, shall lie against the Central Government or any of its officer orother employee or the Jute Manufactures Corporation or any officer or otherperson authorised by that Government Corporation for any damage caused orlikely to be caused by anything which is in good faith done or intended to bedone under this Act.

31.Delegation of powers: (1) The Central Governmentmay, by notification direct that all or any of the powers exercisable by itunder this Act, other than the powers conferred by this Section, and sections32 and 33, may also be exercised by such person or person as may be specifiedin the notification.

(2) Whenever any delegation ofpower is made under sub–section (1), the person to whom such power hasbeen delegated shall act under the direction, control and supervision of theCentral Government.

32.Power to make rules: (1) The Central Governmentmay, by notification, make rules for carrying out the provisions of his Act.

(2) In particular, and withoutprejudice to the generality of the foregoing power, such rules may provide forall or any of the following matters, namely, –

(a) the time within which, andthe manner in which, an intimation referred to in sub–section (3) ofsection 4 shall be given;

(b) the manner in which themonies in any provident fund or other fund referred to in sub–section(2) of section 13, shall be dealt with;

(c) any other matter which isrequired to be, or may be, prescribed.

(3) Every rule made by the CentralGovernment 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 totalperiod of thirty days which may be comprised in one session or in two or moresuccessive sessions and if, before the expiry of the session immediatelyfollowing the session or the successive sessions aforesaid, both Houses agreein making any modification in the rule or both Houses agree that the ruleshould not be made, the rule shall thereafter have effect only in such modifiedform or be of no effect, as the case may be;, so however, that any suchmodification or annulment shall be without prejudice to the validity ofanything previously done under that rule.

33.Power to removedifficulties: If anydifficulty arises in giving effect to the provisions of this Act the CentralGovernment may by order, not inconsistent with the provisions of this Act,remove the difficulty:

Provided that no such ordershall be made after the expiry of a period of two years from the appointed day.

THE FIRST SCHEDULE

[Seesections 2(c), 7, 8 and 15(1)(a)]

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Sl. No Nameof the Company Amount

(Rupeesin lakhs)

———————————————–

1. AlexandraJute Mills Limited,

CharteredBank Buildings.

4,Netaji Subhas Road, Calcutta–700001 353.60

 

2. UnionJute Company Limited;

CharteredBank Buildings,

4,Netaji Subhas Road, Calcutta– 700001. 461.32

 

3. KhardahCompany Limited,

7,Red Cross Place, Calcutta–700001 486.68

 

4. TheKinnison Jute Mills Company Limited,

CharteredBank Buildings,

4,Netaji Subhas Road, Calcutta–700001. 644.70

 

5. R.B.H.M.JuteMills Private Limited,

P.O.KatiharMills, Katihar (Bihar) 17.04

 

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Total 1963.34

—

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THE SECOND SCHEDULE

[Seesections 17, 19(1), 20(1), 22(1) and 25(1)]

ORDER OF PRIORITIES

Part I

Category I

Employees’ dues on account ofunpaid salaries, wages, provident fund, Employees’ State Insurance Contributionor premium relating to the Life Insurance Corporation of India and any otheramounts due to employees in respect of any period whether before or after themanagement of the undertakings of any jute company had been taken over by theCentral Government.

Category II

Secured loans obtained by anyjute company from nationalised banks and public financial institutions duringany period whether before or after the management of the undertakings of thatcompany had been taken over by the Central Government.

Category III

(a) Any credits availed fortrade or manufacturing purpose during the post–take–overmanagement period.

Category IV

Revenue, taxes, cesses, rates or other dues tothe Central Government, a State Government or any local authority or State ElectricityBoard for any period whether before or after the management of the undertakingsof any jute company had been taken over by the Central Government.

Category V

Any Credit availed of for tradeor manufacturing purpose during the pre–take–over managementperiod.

***