Sick Textile Undertakings (Nationalisation) Act,1974
Act No : 57
Section : ACCOUNTS TO BE RENDERED BY THE OWNERS OF SICK TEXTILE UNDERTAKINGS
SECTION 10: ACCOUNTS TO BE RENDERED BY THE OWNERS OF SICK TEXTILE UNDERTAKINGS
(1) Where in pursuance of any decree, order or injunction of a Court or otherwise, the Central Government or the Custodian was prevented from taking over the management of any sick textile undertaking, the owner of such sick textile undertaking shall,
(a) in the case of an undertaking the management of which was subsequently taken over by the Central Government at any time before the date on which the Ordinance was promulgated within sixty days from such date; or
(b) in the case of any other sick textile undertaking, the management of which could not be Taken over by the Central Government before the date on which the Ordinance was promulgated, within sixty days from such date. render accounts in relation to the period commencing on the date of the notified order under the Industries (Development and Regulation) Act, 1951-, or as the case may be, on the date of commencement of the Sick Textile Undertakings (Taking Over of Management) Act, 1972, and ending on the date on which the management of the sick textile undertakings was taken over by the Central Government or the Custodian as the case may be, with regard to the-
(i) assets and stores of the sick textile undertaking acquired or sold during the said period;
(ii) textile sold or despatched during the said period; and
(iii) income derived by the owner from the sick textile undertaking during the said period.
(2) If on examination of the accounts referred to in sub-section (1), any income is found to have been derived by the owner from the sick textile undertaking during the period referred to in that sub- section, such income shall be recoverable by the Central Government from the amount payable under section 8-to the owner of such sick textile undertaking and the debt due to the Central Government on this account shall rank as an unsecured debt.
(3) If no account is rendered by the owner of a sick textile undertaking within the period referred to in subsection ( 1 ) or if the Central Government has any reason to believe that the account rendered by such owner is incorrect or false in material particulars, the Central Government may refer the matter to the Commissioner and thereupon the Commissioner shall determine the income derived by the owner from the sick textile undertaking during the period referred to in sub-section (1), and take steps to recover the said income from the amount payable to the owner of the sick textile under section 8-, as if the debt due to the Central Government on this account were an unsecured debt.
(4) No mortgage, charge, lien or other encumbrance in relation to a sick textile undertaking or any asset thereof shall be binding on the Central Government or the National Textile Corporation if such mortgage, charge, lien or other encumbrance was created, at any time during the period in which the Central Government or the Custodian was prevented, by any decree, order or injunction of a Court or otherwise from taking over the management of the said sick textile undertaking. '
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