 bid no 71 of 1979 the hindustan tractors limited (acquisition and transfer of undertakings) amendment bill, 1979 a billto umend the hindustan tractot8 limited (acquis~tion and transfer of undertakings) actl 1978 be it enacted by parliament in the thirtieth year q'f the republic of  india as follows:-1 this act may be called the hindustan tractors limited (acquisltion short ana transfer of undertakings) amendment act, 1979 title ~13 of 1978 s i in section 5 of the hindustan tractors limited (acquisition and amend transfer of undertakings) act, 1978 (hereinafter referred to as the ment of principal act), in sub-section (2), in clause (b), the following shall be, sections and shall be deemed always to have been, inserted at the end n~mely:-10 ", but excluding loans advanced, on or after such date, by a bank to the company to the extent such loans have been utilised by the company for the re-payment of, or the payment of interest on, secured loans advanced to the company by a bank at any time before such date" 3 in the schedule to the principal act, in categdtry iii ajter the '15 wo~ "secured loans", the following shall be, and shall be deemed always to have been, inserted, namely:-amen!-mentof thesehedule ", including loans advenced, on or after the date of taking over, by a bank to the company to the extent such loans have been utilised by the company for the re-payment of, 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 enact-· ment of the hindustan tractors limited (acquisition and transfer of undertakings) act, 1978 the undertakings were vested on the same date in the state government of gujarat and a new company in the name of gujarat tractor corporation ltd has also been formed to carry on the activity \ 2 section 5 of the act specifies the manner in which the liabilities of the hindustan tractors limited prior to the taking over of the' management of the company and after the taking over of the management of the company should be taken care of according to this section, liabilities arising in respect inter alia of secured loans advanced' by a bank to the company before the date of taking over shall be enforceable against the company_ according to part b of the schedule to the act, secured loans relating to the pre-take over management period fall within category iii priority and the intention of the act was that the secured loans advanced by banks to the company before the take over of the company should be met from out of the amount payable to the company for the transfer to, and vesting in, the central government of the undertakings of the company 'lulder section 8 of the act it was envisaged that the secured loans advanced by the state bank of· india to the company before the take over of the company would qualify for payment under category iii of part b of the schedule and this consideration was taken into account \in determining the amount which has been specijied in section 8 as the amount payable to the company on further examination, it has been discovered that in view of the accounting treatment given in the books of the state bank of india by reaaod of the adjustment of the loans given by the bank after the take over against the secured loans given by the bank to the cojnp8jly before the  take over, all the amounts due to the ,state bank have to be traate4 jb  post-take over loana the post-take over loads which were -advanoeci by the state bank of india to the extent they were utiliaed tor meeting the pre-take over secured loans advanced by the bank to the company shaubl be entitled to the same treatment to which the pre-take over  seclicjled lams whtch were so defrayed wouid ha\le been entitled 'nle amendments ,roposed in the bill he for the purpose of securing this pnation george fernandes, new dzlju; i'he 7th may, 1979  annexure extracts !tom the hindustan trac'l'obs lim:rred (acquisition and transfer of undertakings) act, 1978_ (13 of 1978) ii!                                     ~                                                                             -                                                                                                                    -                                                                                                                                                           - s (1) - - - - - company to be liable for certain prior liabiiities (2) any liability arising in respect of-- - - - - (b) loans advanced by a bank to the company (together wit'l interest due thereon) on or after the date o~ taking over; ' - - - shall, on and from tbeappointed day, be the liability of the central government, or the state government, or the government company aforesaid and shall be discharged by the central government or the state government, or the government company aforesaid as and when repayment of such loans becomes due or as and when s'ueh wages, salaries and other dues and debt become due and payable - - - - -  the schedule(see sections 5, 20, 21, 22, 24 and 26) -  - i order of pbioiuties for the discharge of liabilities of the company - - category iii _ secured loans  - - - - - , / a bill to amend the hirniustan tractors limited (acquisition and transfer, ot undertakings) actl 1978 \ \ (shri george fernandes, minister of industry) 