The Textile Undertakings (Nationalisation) Act,1995
Section 5. Owner to be liable for contain prior liabilities
(1) Every liability, other than the liability specified in sub-section (2), of the owner of a textile undertaking, in relation to the textile undertakings in respect of any period prior to the appointed day, shall be the liability of such owner and shall be enforceable against him and not against the Central Government or the National Textile Corporation.
(2) Any liability arising in respect of –
(a) Loans advanced by the Central Government, or a State Government, or both, to a textile undertaking (together with interest due thereon) after the management of such undertaking has been taken over by the central Government under section 3 of the Textile Undertakings (Taking Over of Management) Act,1983, or as the case may be under section 3 of the Laxmirattan and Atherton West Cotton Mills (Taking Over of Management) Act,1976; (49 of 1989) (98 of 1976)
(b) Amounts advanced to a textile undertaking [after the management of such undertaking has been taken over by the Central Government under section 3 of the Textile Undertakings (Taking Over of Management) Act,1983, (40 of 1983) or as the case may be, under section 3 of the Laxmirattan and Atherton West Cotton Mills (Taking Over of Management) Act,1976], (98 of 1976) by the National Textile Corporation or by a state textile corporation, or by both, together with interest due thereon;
(c) Wages, salaries and other dues of employees of the textile undertaking, in respect of any period after the management of such undertaking has been taken over by the Central Government.
Shall, on and from the appointed day, be the liability of the Central government and shall be discharged for and on behalf of that Government, by the National Textile Corporation as and when repayment of such loans or amounts becomes due or as and when such wages, salaries or other dues become due and payable.
(3) For the removal of doubts, it is hereby declared that,-
(a) Save as otherwise expressly provided in this section or in any other section of this act, no liability, other than the liability specified in sub-section (2), in relation to a textile undertaking, in respect of any period prior to the appointed day, shall be enforceable against the Central Government or the National Textile Corporation;
(b) No award, decree or order of any court, tribunal or other authority in relation to any textile undertaking, passed after the appointed day, in respect of any matter, claim or dispute in relation to any matter not referred to in sub-section (2), which arose before that day shall be enforceable against the Central Government or the National Textile Corporation;
(c) No liability of any textile undertaking or any owner thereof in relation to any textile undertaking before the appointed day, for the contravention of any provisions of law for the time being in force, shall be enforceable against the Central Government or the National Textile Corporation;
