 t'j th~ tute comp anies (n ai'ionalisation) bill, 1980 )~to bel as introduced in lok sabha 71  page 8, line' 6, -fql: "en sure " ~ "enure" 2 page 8, line 4o~-m "cover" ~ "over" 3 page 10, line 11,-after "relation to" insert "a" l!t- page 10, line 49,-for "manufacture" nad "manufactures" 5 page,16, line 27',-, fqt "rs66 lakhs" tea,d "rs660 lakhs" agrahayatla , 1902 (saka)  arrangement of clausqt: clauses chaptbr i preliminary1 short title 2 definitions  chapter ii acquismon and transfer of the undertakings of the jute compa\nd:s3 transfer to, and vesting in, the central government of the undt!r· takings of· the jute companies 4 general effect of vesting 5 jute companies to be !iabl£' for certain ppor liabill~ie~ 6 power of central government to direct vesting of the und~jii,ii of the jute companies in jute manufactures corporation  : -0  chapteriu payment of amounts7 payment of amount s payment of further amount  chapter iv management, etc, of the undertakings of the ju'l'e compani189 management, etc, of the undertakings of the jute companies 10 duty of persons in charge of management of the undertakings to deliver all assets, etc 11 duty of persons to account for assets, etc, in their possession  chapter v provisions relating 1'0 employees of the jute companies12 continuance of employees 13 provident fund and other funds  chaprer vi commissioner of payments14 appointment of commissioner of payments 15 payment by the central government to the commissioner  cuusib16 certain powers of central government or jute manufacturel corporation 17 claims to be made to the commissioner 18 priority of claims 19 examination of c1aima 20 admission or rejection of claims 21 disbursement of money by the coiillllissioner 22 disbursement of amounts tc the jute companies 23 undisbursed or unclaimed amounts to be deposited with the general revenue account  chapi'er vii miscellaneous24 act to have overriding effect 25 assumption of liability 26 management to continue to vest in certain persons until alternative arrangements have been made 27 contracts to cease to have effect unless ratified by the central government or jute manufactures corporation 28 penalties 28 01fencea by companies 30 protection of action taken in pd 1aith 31 delegation of powers 32 power to make rule8 33 power to remove difficultiel the first schedule the second schedule  a billto provide for the tlcquisition and transfer oj the undertaking, of tin jute companies specified in the first schedule with ii t1ie1d to securing the proper management of such undertakings 80 as -eo subserve the interests of the general public by ensuring the continued 'manufacture, production and distribution of articles made of ;ute, which are 'essential to the needs of the economy of the country cmd for matters connected therewith or incidental thereto a of 151 whereas the said jute companies had been engaged in the manufacture and production of articles mentioned in the first schedule to the industries (development and regulation) act, 1951, namely, textiles made wholly or in part of jute; s and whereas the management of the undertakings of each of the said jute companies was taken over by the central government under ii of 111 the industries (development and regulation) act, 1951; and whereas it is necessary to acquire the undertakings of the said jute companies to ensure that the interests of the general public are 10 served by the continuance, by the undertakings of the said jute companies, of the manufacture, production and distribution of the aforesaid articles which are essential to the needs of the economy of the country; be it enacted by parliament in the thirty-first year of the republic of india as follows:-chapter i prl:limm'ary 1 'nus act may be called the jute companies (nationalflation) ad, 1980 short title z in this act, unless the context otherwise requires,-(gi) "appointed day" mean& the date of co~encement of thil act; (b) "commissioner" means the commissioner of payments appointed under section 14:; s lot 19k (c) "jute companies" means the companies (being companfes as defined in the companies act, 1956) specified in the first schedule; lof 1958 (d) "jute manufactures corporation" means the national jute manufactures corporation limited, a company incorporated and 10 registered under the companies act, 1956; (e) "notification" means a notification published in the official gazette; (i> "prescribed" means pre~('ribed by rules made under this act; (g) "specified date" in relation to any provision of this act, is means such date as the ce'ltral crt>vernment may, by notification, specify for the purposes of thnt provisioll and different dates may be specified for different provisions af this act; (h) words and expressions used herein and not defined but 'mned-jin~ the- cbmj'lmles'abt,~ts6, shall 'have' 'rfile 'tnbanbip respec- 20 lof ina tively assigned to them in that act  chapi'er ii3 on tile apoointed illy, the undertakings of every tote eoftlpany,  udl the right, title and intel'elt of every jute company in ~t8t1on to 2s  ,tts ~ shall by virtue of tbis ad, stand transtertu to, and vest in, the centnl government tranater to,and 'vestin, in the central governmentol the undertakinp 01 the jute evmpanies general effect ot vestini • '(1) 'the 'unciertaltings· of each jute 'company shall be deemac:l to t:_l'ctde  all: asaeta,· dgbts,lel8e bows" powers, authorities and pri\tile, '''d'' all: pr1ip!er t" movable' add; ijlullo¥ule, includililg luds, buikhgga 30 worlcsbcsps;' etores, 'in&tmmemsi· fllclicbinery an,d, equipment, cash balailces, ,'aah un1iand, reserve funds; mvealments, book debt& and all other rights and interests in, or arising out of, such property as were, immediately before the appointed day, in the ownership, possession, power or control of t1!e jute company, whetlier'tlitl14n"·or outside india, and all books ol 35 acco'wlt, registers and all otbel",liiraimtnts of whatever nature relating  ~;than,·amo· be1ieamedto, induge the uabilw ~ in sub-section (2) of section 5 (1) all properties as aforesaid which -have vested in the central government under section 3 shau, by force of auch vesting, be frad and diacharged from uy tmst, obligation, mortgage, charge, lien and all other incumbrances -al'eoting them, and aay attachment, injunctioj), s decree or order of any court or other authority restricting the use -of ,such- prq~ies in any manner or appointing any receiver in 1"espect of the whole or any part of such properties shall be deemed to have been mthdrawn (3) every mortgagee of any c>roperty which has vested under this [0 act in -the:- t!ebtral government and eeryperton holding any eharge, lien or other interest in, or in relrtion to, any such property shall give, -w1tb1n such time and in stich- manner as may be prescribed, an inti-'rftation to the com:missioner of ~u'eh mortgage, charge; hen or other -blterest 15 (4) for the removal of doubts, it is  hereby declared that the mortga~e of any property referred to in sub-section (3) or any ether person holding any charge, lien or other interest in, or in relation to, any such property shall be entitled to claim, in accordance with his rights aooil:ltereats,payment of the mortgage money or other dues, in 20 whole or  m part, out of  the ·amounts directed to be given under ·sectigels 7  aud 8 to tbe ,jute company concerned but no -iuch mortgage, ~harffe, lien or other interest uall be en!oreeable against ~y property ~~~ whicb-has ",ested in tile cenual gtwemment ~ (5)'iulylicetree or other \in~trument gran1led to a jute '~ny in 2!jftlat1on to its ,undertaim1gs" which have vested in' the central government umier 8e(!tion s at any 'timf" before the appointed day and in force immediately before that day shan continue to be in force on and after -weh dsy in accordance with its t~nor in relation to arid for the purposes of such l1nd('''rakin~s and on :md from the date of vestinj,'! bf such 3!)'underfakin~s under section 6 in the jute manufactures corporation that corporation ~hall be deemeii to be substituted in surh hcence or dther instrument as if such licencp or other instrument had been granted to such corporation and such co"poration shall hold it foi' the remainder of the period for which the jute company would have held it under the 35 tel'tns ·thereof (6) if, on the appointed day any suit appeal or other proceedinl': of whatever nature, in relation to any matter ~ecified in rub-section (2) of section 5, in respect of the undertakin~s of adv' ime comdllnv wh'ich ', has vested in the central government under aection3 instituted or pre-4~i ferred by or against that comparw ii pending, the4!8me -shall not a1date ·be _ discontinued or be, in any way p"eiudicially affected by reason of ~e tran5fer of the undertakings of such jute company or of an  thinl! confj3ined in this act, but the suit, appeal flf other proceeding lllav be continued prosecuted or enforced hy or agaim;t the ceqtral goivernment ~rwbere 45 the undertakings of such jute i'omp:mv are directed under section 6 to vest in the jute manufactures cot1joration bv or· again!'t that corporation   5  (j) e~ liabilitv t other than the: liabilitv !llded-fled' in 'sulwremion {2)' of, a' jute 08mjl11,t1v: in ~t ·of anv- f)e!"i0d tjribr 'to the nmomted cuwc sbau bethe·liability{)f that -eoiiwl8nv' nd -slhallbp 'eftfntrr!eable 5'" ~aidst it,&qd not ~ttbe centntl ~emment orw~ 'the ut'rder  tak:ijtgs'of th@l jute eompey-vsst in 1lhe jute'manufactures corporatton allaillrt that corporation jute ~­pantes to be liable for certam prior uab1l1_ (2) any liability arising in respect of loans advanced by the central g6vernment or any state government, or both, to a jute company (together with interest due thereon) after the management of the undertakings of the said jute company had been taken over by the central govt>rnment shall, on and from the appointed day, be the liabuity s of the central government and ahall be discharged by that government, or by the jute manufactures corporation 88 and when repay· ment of such loans becomes due and payable (3) for the removal of doubts, it is hereby declared that-(a) save as otherwise expressly provided in this act, no liability, 10 other than the liability specified in sub-section (2), of any jute company in relation to its undertakings in respect of any period prior to the appointed day, shall be enforceable against the central government or where the undprtakings of such company are direct ed under section 6, to vest in the jute manufactures corporation, 15 againc;t that corporation; (ib) no award, decree or order of any court, tribunal or other authority in relation to the undertakings of any jute company, passed after the appointed day, in respect of any matter, claim or dispute, which arose before t"at day, not being a matter, claim or 20 dispute in relation to any liability spe~ified in sub-section (2), shall be enforceable a~ainst the cent"8l government or where the undertakings of such company are directed under section 6, to vest in the jute manufactures corporation, against that corporation; (c) no 1ia~\i1itv incurred by any jute company before the ap- 25 pointed day for the contravention of a provision of any law ,for the time being in force shall be enforceable a,:!'ainst the central government or wl-}ere the undertakinqs of such comnany atf'> ditf"(!tf'd under section 6 to vest in the jute manufactures corporation, against that corporation 30 6, (1) notwit'hstanding anything contained in sections 3 and 4 the central government shall, as soon as may be, after the appointed day direk't, by notification, that the undertakin~ of every jute corrt)anv and t'he riqht, title ann interest of every jute company in relation to its undertakin~, which have vested 'in that government under section 3, 35 and such 01 the liabilities of every jute company as are specified in !'!ub-section (2) of section 5, shall, instead of continuing to vest tn the central government, vest in the jute manufactures corporation either on the date of the notification or on such earlier or h·ter date (not being a date earlier than the appointed day) as may 40 be specified in the notification power of central governmentto direct 'vesting of the undertakings of the jute campaniel in jute manufactures corpora· tiod (2) where the ri~ht title and interest, and the liabnttles referred to in sub-!'!ection (z) of section 5, of the lute companies in relation to their re5l)e!ctive llndertakinjls vest under sub-section (i), in the jute mmufactures corporation, that corporation shall, on and from 'the date o~ 4s such vestinjl, be deemed to have become the' owner in relation to such undertakin~, and all the riq'hts and liabilities of the central government in relation to such undertakings shall, on and from the date of such vesting be deemed to hav'" become the rights and liabilities respectively, of the jute manufactures corporatfon so  chapter til pano:nt of amountspayment of amount, 7 every jute company shall be given by the central government, for the transfer to and vesting in that government under section 3 of 5 ttie undertakings of that company and the right, title and interest of that company in relation to its undertakings, in  cash and in the manner specified in chapter vi, such amount as is specified against the name of that company in the first schedule r (1) every jute company shall be given by the central government, payment of further amount 10 for the deprivation of the management of its undertakings, an amount of rupees ten thousand per annum for the period commencing on the date on which the management of the undertakings of that company was taken over in pursuance of the order made by the central government under the provisions of the industries (development and regula-85 of 1951 is tion) act, 1951 and ending on the appointed day (2) every amount spedfied in the first schedule or calculatefl in accordance with the provisions of sub-section (1) shall carry simple interest ai the rate of four per cent per annum ,for the period commencing on the appointed day and ending on the date on which the payment 20 of such amount is made by the central go"ernment to the commiabioner (3) the amounts determined in relation to any jute company in accordance with the provisions of sub-sections (1) and (2) shall be given by the central government to the jute company in addition to tbe amaunt specified in the first schedule aiaimlt that company  chapter iv 25 management, etc, of the undertakings of the jute companiesl4adalement,  of the undertakinp of the jute companies 9 the general superintendence, direction, icontrol and management of the affairs and business of the undertakings owned by each of the jute companies, the right, title and interest in relation to which have vested 30 in the central government under section 3, shall, where a direction has been made by the central government wlder sub-selction (1) of section 6, vest in the jute manufactures corporation and thereupon the jute manufactures corporation shall be entitled to exercise, to the exclusion of all other persods, all such powers and do all such things in relation 35 to each such undertaking as the jute company which owned it was authorised to exercise and !kl immediately before the awointed day 10 (1) on the vesting of the management of th~ undertakings of the jute companies in the central government or the jute manufactures corporation, as the case may be, the persons in charge of the manage-<40 'ment of such undertakings immediately before such vesting shall be bound to deliver to the central government or the jute manufactures corporation, as the case may be, all a5sets, books of account, registel'8 and all other documents in their custody relating to such undertaldnp (2) the central government may issue such directions as it may duty of perlons in char, of manaaementof the undertakinp to deliverall use1ll, ete  <4s deem desirable in the circumstances of the case to the jute manufactures corporation and the said corporation may also, if it is considered neces-- ry so to do, apply to the central government at any time for fnstnlc-tiona as to ,he manner in wbic4?~ zqanagement of the una~ of the jute companies shall be conducted or in relation to any other matter arising in the coune of' such management 11 (1) any person who has, on the appointed 'day, in his ~p9sbe11blon or under his contr,ql any assets, books, docume~ts or , other ~ relat-s mg to any undertaking owned bf a jute company which has vested in the central government or the jute manufact~ corp~atio~ uj1der this act, shall be liable to acco~t for ~ q,id ~tis  boqr~ documents and oher papers to the central government· or the jute dut70f per  to·, account for assets, etc,ln their posses aiqa ~j1fa('tw"e$ corpqration and shall deliver ~up 19" t4 ceal 10 governmentar the j l&te ~wai::tuu& cqj;ppratwn ,o~, ~ ~ ~j1iojl -01; pemms 8$ the central gov~4tor tae jw:e mtq~ ~ ration may specify in twa beaalf (z')' the central government or the jute manutactures ct>rporatton may take or ca~ to be take~ all necessary ste~s for securing possession is of tne undertakings of the jute companies vrhich have vested in the central government or the jute manufactures corporation wwer this att (3) every jute compad)' shall within suoa period' as the oe'ilwel govemment may auow in this behmf, ful'dis, to that govenunent a 20 complete inventory of all its pnperty and· a_ta,  on· tae a"poiflteci day, pertaining to its wldertakings which have vested in the c@tral gqv'el"ftsi'lent under seet~ 3, and for this purpose, the central government or tbe jute meufaetures corporation shall a1f'ord to such compaay all reasonable faeilitis 2s  chapter v12 (1) e'yei-1 penon who has been, immediately before the appointed day, employed in any wlder~ 01 aq-y 0« thqj\1te~pa\¥es ahall become,-30 continuanceof eqiio-1ee1t: (~ on add· frent the appeifl'ed-day, an emp~ of the central gwefmjleflt, add: (b), where the wwata,k,id", of_ ~;j)1ul ~p_ ~ ""~ ill the jute manufactures cprpom~ 811 ~yee of tl:ie, au corporation, on and from the date 01 such veatm& 35 8ild sull hold offtoe or service unaer the estral govet'1'l!ljeft,t or the jute maaafaetures corporation, as the cae may be, with the same rights and privileges as to pension, gratuity and ~ther mat1ers as would hawe been adnra:iasible to him if· theft had bees do iaich ves\ibg ,  d'1fhall clldt1due to do so unless and until hie, employment' uftder tfta oennil 4(') goy8l'mrl_t 01" tde jute mamafaetmesoorpehtirliil; as the- 0iiiie ma,be, ie daly ttll'tnidated or until· his rem  tt and· obr cgftdnods of' moe aj9 duly altend by· the central 'oegemment- or the jute miidu--fadulw ())rpqratioll, as iiie· caee may b& (2) notwithstanding anything contained in the industrial disputes 4s act, 1947, or in any ouler law for the timebf:ij)&)jt1w:file; ~~ 1oflmf of the servi~8s of any o1lm!er or oth~ pt!j"spd,employed~,~ at the jute companiasr to the central· ~eqt ~ tqo ~,~ ~ corpor-atiqj;l, abau, _ enatjo  m, oikltel' or· ~8!¥1,  any compensation, jld~,r t~ t\ct  orw o9l~rlaw for ~~ ~me being in fo~~e and no such clairp, sqall ~,,~p~d qy ~y col,lft, tribunal or other authority  , 13(1) where a jutf)e<mlplmy ~$ u~sttbu~ ,il, ~yident fund, provident fund and other funds "~,, 6uper~nuation fund, : welfare, fund ~\ot~u~ for tbebeneftt ot persons employed in any l jof ·tbe \uld~kingii, qwned by it, uie:lponies relatable to its employees whose services have becqme transferred by or under this act to the central ~v~nunent~r t~ej~ manufactures cprporation shall, out of ijlejddnie~t~~~g"pn tj:le 'rpoint~d day, to j 0 ·um credit of such pro,vident fund,, "~pew~npl1a~ iflmd, ,welfare fund or other· fujlds· stand transferfeq 'to~ a~d vest in, tb,e,·centrajgqv(!1;'ilment or the jute manuf~ctures cqrpor¢iqn,asthe c~ may be (2) the monies which stan~ p':apsferr~ yndetr ~~b-section (1) ~o the central government or th£> jute manufactures corporation, as the case is may be, shall be dealt with by that govemment or corporation in such manner as may be prescribed  chapter vi  ,col'l]\q;ssioner of payments14 (1) the central government shall, for the purpose of diabursing appoint-20 the amounts payable under sections 7 and' 8 'to the jute companies, by ment of notification, appoint a commissioner of payments:· commissioner ot (2) the central government may appoint such other persons as it paymay think fit to assist the commissioner and thereupon the clommissioner ments may authorise one or more of su'th persons also to' exer:ue all or any 2$ of the powers exerci§able by him under this act and different persons may be authorised to exercise different powers (3) any person authorised by the commissioner to exerc'ise any of the powers exercisable hy the commissioner may exerci'5e those powers in the same manner and with the same effect as if they have been con-30 ferred on that person directly by this act and not by way of authorisation (4) the salaries and allowances of the commissioner and other persons appointed und~r' t1~fs section shall be defrayed out of the consolfdated fund of india  35 15 (1) the central go,yernment oshlll, within thirty d~sfrom the payment specified date, pay in cash to the, commissi~er, ~o:, p'ayment' to every by ute jute company,-central (a) a,n amount equal to tp'~ amou~~ iipeqitjed agaipst the name of that company in the first schedule; g<lvernment to the commissioner  (b) a further amount  equal ,to tbe, ~oupt p~yable to that company under section 8 " (2) a deposi't account shall be opeaedby the central'government in favour of the cqldmis~ioner it?-~be, ruj:?~li<;,;~~cqllnt~ ii)qia, and every , amount paid un4er this act,to tl1es;,w:~~ss!on~~sh~l1 i?e~eppsited by 45 him to the credi'tof tile sa~d, ,depo$it ~~cq,c,pjt ~~  tl,1e ~<i de~osit account shall be operated by the commissioner  - (3) separate tecbrds shall bernatntained 'by the commisslorter in respefit of each 'or 'the jute companies in relatiotl'to which payment has been made to him under this act (if') interest accruing 'on the amount in " relation to a jute· 'company standing to the' credit of the depof'it account referred to in sub-section s (2) shall ensure to the benefit tjf such jute company 16 (1) the central government or the jute manufacturescorporation, as the case may be, shall be entitled to receive, up to the t!pecified date, to the "exclusion 01 all other persons, any moibey due to any jute company in relation to its undertakings which have vested in the 10 central government or the jute manufactures corporation, and realised after the appointed day, notwithstanding that the realisation pertains to a period prior to the appointed day certain powers of central governmentor jute manufactures corporation (2) the central government or the jute manufactures corporation, as the case may be, may make a claim to the commissioner with regard is to every payment made by that government or corporation, after the appointed day for discharging any liability of a jute company, not being any liability specified in -sub-section (2) of section 5, in relatiqil to any of the undertakings owned by it in respect of any period prior to the appointed day; and every such cl~im shall have priority, in accordance 20 with the priorities attaching under this act to the matter in relation to which such lfability has been discharged by the central government or the jute manufactures corporation (3) ,save as otherwise provided in this act, the liabilities of a jute company in relation to any of the undertaki'ngs ownea by it in respect 25 of any transaction prior to the appointed day, which have not been discharged on or before the specified date, shall be the liabiliti(!03,~ that company 17 every person having a claim against a jute company with regard to any of the matters specified in the second schedule, pertaining to 30 any undertaking owned by it, shall prefer such claim before the commissioner within thirty days from the speci'fied date: claims lobe made to the commi&-sioner provided that if the commissioner is satisfied that the claimant was prevented by suftici'ent cause from preferring the claim within the said period of thirty days, he may entertain the claim within a further period 35 of thirty days, but not thereafter priority of claims 18 the claillli made under section 17 shall have priorities in accordance with the following principles, namely:-(a) category i ~han have precedence over all other categories and category ii ~hall have precedence cover category iii, and so on; 40 (b) the claims specified in each of the categories shall rank equally and be paid in full, but if the amount paid tq the commissioner under this act is in-sufficitmt to meet such claims in full, they shall abate in equal proportions and be paid accordingly; and (e) the questlonof discharging any liability with regard to a 45 matter specified ~n a lower category shall arise only ,if a surplus is left after meeting an ~a~ liab~li~ies sp~cifi~4 in the immediately hiaber catego,ry 10 ~_ ~ , 1 , it (1) on receipt of the claims made under section 17, the com- examl-~ssioner shall arrange the claims in the order of priorities specifted nation of in the second schedule and examine the same in accordance with such claims order ' (2) if on an examination of the claims, against a jute company, the commissioner is of the opinion that the am~t paid to him under this act for payment to such company is not sufficient to meet the liabilities specified in any lower category, he shall not be required to examine any ·~aim in respect of such lower category ie 20  (1) after ex~mi~ing~e cl~ims s:gainst a jute company, with ~:~~ refe~ence to the prlorities set: out in the second schedule, the com-' rejection missioner shall fix a date on or before which every claimant against of claims the company shall file the proof of his claim (2) no,t less than fourteen days' notice of the date so fixed shall be is given by advertisement in one issue of any daily newspa;>er in the eriglish language having circulation in the major pai't of the country and one issue of any daily newspaper in such regional language as the commissioner may consider sui'table, and every such notice shall call upon the daimant to file the proof of his claim with hie' commissioner 20 within the period specffied in the advertisement (3) every claimant who fails to file the proof of his claim within the period specified by the commissioner shall be excluded from the d~ bursements made by the commissioner (4) the commissioner shall, after such investigation as may, in his 2s opinion be necessary and after giving the jute company concerned an opportunity of refuting the claim and after giving tl1e claimant a reason, able opportunity of being heard, by order in writing, admit or reject the claim in whole or in part 5 of 1908 (5) the commissioner shall have the power to regulate his own 30 procedure in all matters arising out of the discharge of his functions including the place or place~ at which he may hold hi's sitting and shall for the purpose of making any investigation under this act have the same powers as are vested in a civil court under the code of civil procedure, 1908, while trying a suit in respect of the following matters 35 namely:-(a) the summoning and enforcing the attendance of any witness and examining him on oath; (b) the discovery and production of a,ny document or other material object producible as evidence; 40 (c) the reception of evidence on aftidavibs;  (d) the issuing of any commission for the examfnation 'of witnesses (6) any investigation before the commissioner shall be deemed tot be a judicial proceeding within the meaning of sections 193 and 228 of 0&5 of 1860  45 the indian penal code, and the commissioner shall be deemed to be a civil court for the purposes of section 195 and chapter xxvi, of the lof 1974 code of criminal procedure, 1973 , (7) a claiman~ who is dissatisfied with the decision of ~he gommissioner may prefer an appeal against such decision to the high court witqitl the local'uniits ci'whos(jtirisdictibb 'the registered office 'of the jute compariyconcemed 'isl'sitwt~1 ' ' pro~ded that 'where' 'a person who ii;- -a judge of a high court  'is: appointed to be the commissioner, such appeal shall be heard and disposed ofby'nbt was thall' m judges of 'that high court 5 21 mer· adnlittiag' la' claim 'against: a, jute' company under this act, the amaunt due in respect of such claim shall be paid by the commissioner to the penon or personl1o whom sttcb amount is due and _ such dyment, the liability of sudl jute company in respect of such claim shall stand disclwrgec1 '" 10 disbursementof money by the co~ sioner  ' 22 (1) if out of the!' mol1ii!l5 pard to him in relation to jute company,' there is a balance left afterlii~etirlg the 'liabilities'as specified 'i'n the second schedule, the commissioner shall disburse such balance to such jute company disburse--mentof amounts to the jute companies (2) where the possession of any machinery, equipment or other_5 property possessed by a jute company has vested in the central government or the jute mairufadures corporation under this act but such machinery, equipment or other property does not belong to such jute company, it shall be la,\\',ful for the central government or, as the case may be, the jute manufactures corporation, to continue to possess lzo such machinery' or equipi1lent or other property on the same terms and conditions under· which they were possessed by such jute company immediately before the appointed day undisbursed or unc1aimed amounts to be deposited with the general revenue account, 23 any money paid to the commissioner which remains undisbursed or ~laimed on the date immedia~ly preceding the date on which the lzs office of the commissioner is finally wound up, shall be transferred by the commissioner,before his office is finally wound up, to the general revenue account of the central government, but a' claim to any money so transferred may le preferred to the central government by the person entitled to such payment and shall be dealt with as if such 30 transfer bad not beel made, and the order, if an~', for payment of the claim bei,pg treated :s an order for the refund of revenue chapter vii  miscellaneousact to !have overriding effect assumptionof liability 24: the provisions of this ~ct shall have effect notwithstanding any- 35 thing inconsistent therewith 't!ontarned in any other law for the time being in force or in any instrument having'eflect by virtue of any law other fhan this act, or ~in any deeree ot 'order of any court, tribunal or other authority 25 (l1) where any ifewfity"' of" a' 'jute 'ttml~ t'miisidg out of any 40 item in any eatelo1"1' ep«ified in part i of the seeond schedule is not discharged fully by the commissioner out of the amounts paid to him under this act, the commissioner shall intimate in writin, to the central govefnnlelnt t~i ~t w'theliabuitfwlaich remains undiselultr~ and that "iabmt~ 'afimtbe ruibui~ct'''y:lthe cekitrai gcwemmeut," 4s (2) the central govenunent'may; by order, direct the jute manu-" '" factures corporation to take over the liability assumed by the c~tral government under sub-section (1), and on receipt of such direction, it shall be the 'duty ;6f the jut~ m-anit!&eture corpotadont6 diicharke such uabmty ',i t· ' 26 notwithstanding'the vesting undet"tbis''1act of' the ('undertakmgs' df' any jute company in the central governrnem: or thej'ute manufactures corporation~ : (a) any person' who has been man~ the a1f8irs 'of such 5 undertakings before the date on which the undertakings' had so vested shall, until alternative arrangements have been made by the central government, or, gs the case may be, the jute manufactures corporation, for the management' of such undertbltings, continue to manage the affairs of the undertakiqgs,' as if such managementto continue to vest in certain persons until alternative arrangements ha've been made 10 person had been authorised by the centraigovemment, or; as the case may be, the jute manufactures corporation, to manage s'ueb undertakings; (b) suchpersmi shall, until alternattw mangernllltl'\\ have been made by" the central' government, 01';' as th! case may' be, the is jute manufactures corporation,'contthtte t~, be a'lithoi1sed'to operate, in relation to the undertakings of such 'jute company, any account of such undertakings in any bank as if he had been authorised by the central government or the jute manufactures cor--poration to operate such account 20 27 every contract entered into by any jute company in relation to contracts any: of the undertakings owned by it; whidf' has v~ted:': in th,e centzti to cease government under section, 3, for any service, ,sale ' or, supplt'~'ahd in :~tve force immediately'before the appointed6ay,'shall,6ftrmd fi'om the jinless expirf of a period of one hundred arid eighty dbys'ftiom!th!apt,omted'!'t'atifled 25 day,eease to' have effect unless such contract is, befotethe expiry <if by the that period, ratified in writing by the central g'ova'nmel'ff' or~ihe jute :central manufact'ures corporation, and in, ratifyini sl1ch contract, the ce~tral ::~r:; government or the jute manufacttirescorpo:rdtort"rt1ay'''l'nake'i'lich jute alterations or modifications therein as it may think fit: manufactures 30 provided that the central government or the jute manufaotul'elt" corpora-corporation shall not omit to ratify a contract and shall not make any tion, alteration or modification in a contract-35 (a) unless it is satisfied that such contract is, undulr onerous or has been entered into in bad' faith or is de~riiaj to the interests of the central governme!lt or the jute manufactures corporation; and (b) except after giving the parties to"the edntrael"ll'i-easdihi6le ' ,\ opport'unity of being heard and except after recording in writing its reasons for refusal to ratify the 'contract' o'r formaktng any alteration or modification therein 28, any person who,-penal ties (a) jlaving' irt his possession, custody or control any property forming part of the undertakings owned by any jute company, wrongtulirlwithhc11as:~siieh'properlyl~ hbri{''oie'cen\nw'go~ermnei1t' or the j ute mmu!'8~t'iu'es' :c'drporaticnl'; ijr: : 4s (b) wrongm:fy'iobtafns'lpds8es$i~qe:;f; 'cill'  mal~""i!iy''"pti~~1l1l forming part of, the undertakings owned by'rtfiy me·'~p8iiy~ or r (c) wilfully withholds or fails to furnish to the central govern:-ment or the jute manufactures corporation or any person or body of persons specified by that government or corporation as the case may be any document or inventory relating to the undertakings owned by any jute company, which may be in his possession, custody 5 or control; or (d) fails to deliver to the central government or the jute manufactures corporation or any person or body of persons specified by that government or corporation, any assets, books of account, registers or other documents in his possession, custody or control relating 10 to the undertakings owned by any jute company; or (e) wrongfully removes or destroys any property forming part of the undertakings owned by any jute company oil' prefers any claim under this act which be ki'lows or has reason to believe to be false or grossly inaccurate, shall be punishable with im;jrisonment for a term which may extend to two years and also with fine which may extend to ten thousand rupees offences by c'ompanles 29, (1) where an offence punishsble under this ad has been committed by a company, every person who at the time the offence was committed, was in charge of, and was responsible to, the company for the :ow conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was 25 committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence (2) notwithstanding anything contained in sub-section (1), where any offence under this act has been 1c0mmitted by a company and it is proved that the offence has been committed with the consent or conni- 30 vance of, or ia attributable to any neglect on the part of, any director manager, secretary or other officer of ,the company, such director, manager secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly erp14n4tion-for the purposes of this settion-3s (a) "company" means any body corporate and includes a firm or other association of individuals; and (ib) "director", in relation to a firm, means a partner in the firm 30 (1) no suit, prosecution or other legal proceeding shall lie against the central government or any officer of that government or the jute 40 manufactures corporation or other person authorised by that government or corporation for anything which ia in good faith done or intended to be done under this act proteetlonot action taken in ,004 talth (2) )(0 suit or other legal proceeding shall lie against the central government or any of its oftlcers or other employees or the jute manufactures corporation or any oftlcer oil'other person authorised by that corporation for any damage cau~d or likely to be caused for anything ,s which is in good faith done or irtended to be done under this act 31 (1) the central government may, by notification, 'direct that all delegaor any of the powers exercisable by it under this act, other than the tion of powers conferred by this section and sections 32 and 33, may also be powers exercised by such person or persons as may be speclfled in the notiftcatioll 10 (2) whenever any delegation of power is made under sub-section (1), the person to whom such power has been delegated shall act' under the direction, control and supervision of the central government 32 (1) the central government may, by notification, make rules for powel'to carrying out the provisions of this alct makerules, is (2) in particular, and without f;lrejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-'(a) the time within which, and the manner in which, an intimation referred to in sub-section (3) of section 4 shall be given; 20 (b) the manner j,n which the monies 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 is required tq be, or may be, prescribed i 25 (3) every rule made by the central government 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 total period of thirty, days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following  the session 30 or the successive sessions aforesaid, both houses agree in making any modification in the rule or both h'lllses agree that the rule sh(1uld not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modiftcation or annulment shall be without prejudice to the validity of anything 35 previously done under that rule 33 if any difficulty arises in giving e1f~ct to the provisions of this power to act, the central government may, by order, not jnccmsistent with the remove provisions of this act, remove the difficulty: difftculties provided that illo such order shall be made after the elo;liry of a 40 period of tw() rea~ from th~ ~~pointed day:  ,  '' jl~~,l~f"~c~ule ' •• '"j,~ •• ctiodl\ 2(c), 7,j~, 15(1) (e)l----~'~----~-------'- - ,----~--si no , :,' na~c; of the jute ,~mpany amount (ru~ in lakhs) s ,j~ ~~draji~~ws umit~  qh~\rtfr~,~,~~, b)!~dings, 4",netajl slibhai load, calcutta-70000i - r;  353 60 q union jute ~  := y limite~ chartered bank buildings, ri~i;nouaj  ~ calcu~:"70000j   4fii32 3· khardah company limited, 7, red cross place, calcutta-7oooj i  '" 10 48668 4r  the ~n j~e~, cop1~nyjimited 9hartered bank ~\j~d~gs~ 4>, n~ll ~&bhai road, calcutta-7ooooi  6+4·70 5 r b h mjute mills private limited, po katihar mills, ~kat~ (bihar) 17 04 total the second schedule [see sections 17, 19(1-),20(1),22(1) and 25(1)]  order of priorities part i| category                                                               | 1-                                                   ||------------------------------------------------------------------------|------------------------------------------------------|| 20                                                                     |                                                      ||                                                                       |                                                      || "'1!~pj~y~'dues                                                       |                                                      || pn                                                                     |                                                      || ,account qf unpaid !salaries wages, provident                        |                                                      || flul(l                                                                |                                                      || emplqyees'                                                             |                                                      || sta~e                                                                  |                                                      || insurance                                                              | contribution                                         || pr~mium                                                                |                                                      || relating                                                               |                                                      || to                                                                     |                                                      || the'                                                                   |                                                      || ufe                                                                    | insurance corporation of india and any other amounts || due to employees in respect of any period whether before               |                                                      || or                                                                     | after                                                || the                                                                    | management                                           || 2s                                                                     |                                                      || taken over by                                                          | the                                                  || category                                                               | 11-                                                  || ,secured loans obtained by any                                         | jute                                                 || banks and public financial inbtitutiotls during any period whether be- |                                                      || l-"                                                                   |                                                    || fore                                                                   | or                                                   || a~er                                                                   |                                                      || th,e                                                                   | t;nanagement of                                     || 30                                                                     |                                                      || had                                                                    |                                                      || b~~                                                                    |                                                      || taken over                                                             |                                                      || by                                                                     |                                                      || the                                                                    | central government                                  |"i,·, category iii-any credit availed of for trade or manufacturing purpose during ,the post take-over management period part ii category iv-3s revenue, taxes, cesses, rate~ or other dues to the central government, state governments and local a'uthorities or state elec-:tricjty ~9ard f?r ~,':lyc,l?eriod whether before qf  after ~h~  !l1anage-"" m~nt ;of the tl:'~derta~gs of any jute company had been taken 40 over by the central, gqverntrient  , ~ -  ~ i catego'ty v-anr credit availaa, of ~r, trad~ or~anut~ctu\'tp~ purpose  statement of objects and reasonsthe management of mis alexandra jute mills limited, mis union jute company limited, mis khardah company limited, mis kinri1son jute mills company limited and mis rblim jute mills private limited, was taken over, after proper investigations, by the central government under the provisions of the industries (development and regulation) act, 1951 during 1977 and 19'78 2 these companies together have an installed productive capacity of over 88,000 metric tonnes to produlce jute goods which are essential to the needs of the economy of the country a labour complement of over 17,000 is also involved 3 the investigation reports, feasibility relqorts, viability studies, etc, undertaken before the take-over of the management of these mills clearly brought out the possibility of reopening of these mills, which were dosed at the time of take-over, and of making their operations viable with injection of adequate funds and reorganisation of adequate funds and reorganisation of the management structure each of these mills had a negative net worth on the date of take-over the performance of these mills after take-over has not been satisfactory the reports, drawn uq mostly by the financial institutions and iconsidered at inter-departmental meetings, had clearly stated that the operations of these mills are bound to remain unsatisfactory unless immediate steps are taken for modernisation of the plant and machinery this icalled for further heavy 'investment of public funds it was felt that further investment of public funds should be preceded by some arrangement which ensured continuity of the management of the mills with the government taking all the factors into 3jccount, it was felt that the process of nationalisation appeared to be the most appropriate solution to the problems of the mills taken over 4 the bill provides for the nationalisation of these mills and for other incidental matters nr:w'delm; pranab mukherjee the 17th novembe-r, 1980  president's recommendation under article 117 of the constitution of india[copy of letter no 2517 /79-jute, dated the 20th november, 1980 from shri pranab kumar mukherjee, minister of commerce and steel and mines to the secretary, lok sabha] the president, having been informed of the subject matter of the bill to provide for the acquisition and transfer of the undertakings of messrs alexandra jute mills ltd, mis union jute company ltd, mis khardah co ltd, ws kin~ison jute mills company ltd, and mis rbhm jute mills (p) ltd, with a view to securing the proper management of such undertakings so as to subserve the interests of the general public by ensuring the continued manufacture, production and distribution of articles made" of jute, which are essential to the needs of the economy of the country and for matters connected therewith or incidental thereto, recommends under clauses (1) and (3) of article 117 of the constitution, the introduction of the said bill in and its consideration by lok sabha clause 3 of the bill provides for the acquisition of the undertakings of m/s alexandra jute mills limited, mis union jute company limited, mis khardah company limited, m/s kinnison jute mills company limited and mis rbhm jute mills private limited, by the central goverrunent 2 clause 7 of the bill provides for the payment, in cash, and in the manner specified in chapter vi of the bill, of an amount of rs 196334 lakhs (rupees nineteen hundred sixty-three lakhs and thirty-four thmlsand only) for vesting in the central government, the right, title and interest of the companies in relation to the undertakings owned by them 3 sub-clause (1) of clause 8 of the bill qrovides for payment of a further amount in icash, in conside!'ation for the deprivation of the companies of the management of their undertakings, calculated at the rate of rs 10,000 (rupees ten thousand only) per annum, for the period commencing on the date on which the management of the undertakings of the companies was tak,en over by the central government and ending on the date of nat:onalisation it is estimated that this amount will be of the order of rs 150 lakhs (rupees one lakh and fifty thousand only) 4 sub-clause (2) of clause 8 of the bill provides for payment of simple interest at the rate of four per cent per annum in respect of the amounts payable under clause 7 vnd sub-clause (1) of clause 8 for the period commencing on the appointed day and ending on the date on which the payment of the amounts is made by the central government to the commissioner of payments it is estimated that this amount i6 likely to be of the order of rs 6fi lakhs (rupees six lakhs and sixty thousand only) every month 5 clause 14 of the bill provides for the aqpointment of a commissioner of payments by the central government with adequate staff to assist him for the purpose of 'disbursing the amounts payable to the companies the salaries and allowances of the commissioner of payments and his staff and expenditure on office and establishment will be defrayed out of the consolidated fund of india the estimated exqenditure on this account i'5 likely to be of the order of rs 10,000 (rupees ten thousand only) per month 6 in terms of sul:rclause (1) of clause 25 of the bill, where any liability arising out of any item specified in any category in part i of the s~hedule to the bill is not discharged tully by the commissioner out of the amounts paid to him under the bill, the commissioner will intimate the central government the extent of the liability which remains 'so undischarged and the liability shall be assumed by the central government the extent of liability on this account will be known only subsequently after the commissioner of payments has made available his reports 7 funds will also have to be provided for a loan of rs 36300 lakhs to the national jute manufactures col'f?oration to which the undertakings of the mills are proposed to be transferred, as mm:gin money for obtaining financial assistance from public institutions and banks formodernisation/renovation 8 the bill, if enacted, rs not likely to involve any other recurring or non-recurring expenditure  memorandum regarding delegated legislationclause 32 of the bill empowers the central government to make rules to carry out the provisions of the bill the matters in reaped of which rules may be made, inte'r alirl, relate to the time within which, and the manner in which, an intimation regarding any mortgage, charge, lien, etc, on the property which has vested in the central government may be given to the commissioner of payments, the manner in which monies standing to the credit of any provident fund superannuation fund or other funds established for the benefit of persons employed in the undertakings acquired and transferred to the central government shall be dealt with and such other matters as are re<juired to be specified by rules 2, the matters in respect of which rules may be made are matters of i?rocedure or administrative detail the delegation of legislative power is, thus, normal in character  a billto provide for the acquisition and transfer of the undertakings of the jute companies specified in the first schedule with a view to securing the proper management of such undertakings so as to subserve the interests of the general public by ensuring the continued manufacture, production ?nd distribution of articles made of jute, which are essential to the needs of the economy of the country and for matters connected therewith or incidental thereto (shri pranab kumar mukher;ee, minister of commerce and steel and mines) 