 bill no 85 of 1980 the hindustan tractors limited (acquisition and transfer of undertakings) amendment bill, 1980 a billto amend the hindustan tractors limited (acquisition and transfer of undertakings) act, 1978 be it enacted by parliament in the thirty-first year of the republl~ of india as follows:-1 this act may be called the hindustan tractors limited (acquisi-short tion and  tl'ansfer of undertakings) amendment act, 1980 title | 13                                            | of      | 19i5                                   ||-----------------------------------------------|---------|-----------------------------------------|| amend_                                        |         |                                         || ment                                          |         |                                         || of                                            |         |                                         || section                                       |         |                                         || 5                                            |         |                                         || z                                            |         |                                         || in                                            | section |                                         || 5                                             |         |                                         || of                                            | the     | hindustan tractors limited (acquisition || 5                                             |         |                                         || transfer of undertakings) act,                |         |                                         || 1978                                          |         |                                         || (hereinafter referred to                      | a      |                                         || tae                                           |         |                                         || prin-                                         |         |                                         || cipal act), in sub-section                    |         |                                         || (2),                                          |         |                                         || in clause                                     |         |                                         || (b),                                          |         |                                         || the                                           |         |                                         || following shall be,                           |         |                                         || and                                           |         |                                         || shall be deemed always to have been, inserted | at      | the end,                                ||                                             | ,       | but                                     || a                                             |         |                                         || bank                                          |         |                                         |10 to the company to the extent such loans have j:ecn utilised by the company for the re-payment of, or the payment of interest on, secured loana advanced to the company by a bank at any time before such date" 3 in the schedule to the principal act, in category iii, after the is words "secured loans", the following shall be, and shall be deemed always to have been, inserted, namely:-amendment of the schedule " including loans advanced, on or after the date of taking over, b~ a bank to the company to the extent such loans have been utilised by the company for the re-payment o'f, or the payment of interest on secured loans advanced to the company by a bank at any time ~ , " before the date of taking over   statement of objects and reasonsthe government of india assumed the management of hindustan tractors limited, vishwamitri, baroda in march, 1973, under the industries (development and regulation) act, 1951, and appointed gujarat agro industries corporation as its authorised controller for a period of five years the undertakings of the company were acquired by the central government with effect from the 1st april, 1978, on the enactment of the hindustan tractors limited (acquisition and transfer of undertakings) act, 1978 the undertakings were vested on the same date in the state governm~nt of gujarat and a 'new company in the name of gujarat tractor corporation ltd has also been formed to carryon the activity 2 section 5 :if the act specifies the manner in which the liabilities of the hindustan tractors limited prior to the taking over of the management of the '::ompany and after the taking over of the management of the company should be taken care of according to this section, liabili-h~§~ris~, i~ te~t inter alia of secured loans advanced by a bank to the company before the date of taking over shall be enforceable agatnst the cornpeny according' to part b of the schedule to the act, secured loans relating to the pre-take over management perioq :tall within category iii priority and the intention of the act was that the secured loans advanced by banks to the company be'fore the take over of the company should be met from out of the amount payable to the company for the tratlsier to, and vestipg in, the central, govern~ent of the undertakings of the company under sectioj} 80f the act it was envisaged that the secured loans advanced by the state bank of india to the companjr beiore the tait>e oyer of the codlpmy wolild qualify for payment under category iii of flirt b of the schedule and this consideration was taken into account in determining the amount which has been specified in section 8 a& the amount payable to the company on further examination, it has been discovered that in view of the accotintmg treat-melnt given ~ the books of the state bank of india by reason of the adjustment of the ,loans given by the bal\kafter the take over against  imeulle4! l~ giwn by ,the bank to the company before, the take over all the amounts due to the state bank have to be treated as post-, , , take over loaps the post-take over loans which were advanced by the state bank of india to the extent they were utililltd 'iiormeettng the pre-take over ~ecured loans advanced by the bank totbe company ihould be entitled to tl;1e same ~eatment to whioh tm p!&'take lover secured loans which were so de 'frayed would:' ha'ye been ntitw the amendments proposed in the bill are for the purpoae ofhc1lriitc this potitioll new delhi; (!baranji'r chanana the3t~ 11l~, 1'980' 'i ,  annexure extracts i,qom the hindus~tltac'l'oas limrr!:d (acquismon and transfer of undertakings) act, 1978 (13 of 1978)     5 (1) -    - (2) any liability arising in respect of-- - -  - (b) joans advanced by a bank to the company (together with interest due thereon) on or after the date of taking over; company to be liable for certain prior liabilities     -  the schedule(see sections 5, 20, 21, 22, 24 and 26) order of priorities for the discharge of liabilities of the company    -   • part bpre-take-over mmragement period - - - - - category iii secured loans - - -  - to amend the hindustan tractors limited (acquisition and transfer of undertakings) act, 1978 (shri charanjit chanana, minister of state in the ministry of industry) 