Kosangas Company (Acquisition of Undertakings) Act,1979
Act No : 28
Section : GOCUL GAS PRIVATE LIMITED AND KOSANGAS COMPANY TO BE LIABLE FOR CERTAIN PRIOR LIABILITIES
SECTION 04: GOCUL GAS PRIVATE LIMITED AND KOSANGAS COMPANY TO BE LIABLE FOR CERTAIN PRIOR LIABILITIES
(1) All liabilities, other than the liabilities specified in sub-section (2), of Gocul Gas Private Limited or of Kosangas company or its partners in or in relation to the undertaking in respect of any period prior to the appointed day shall be the liabilities of Gocul Gas Private Limited or of Kosangas company or its partners, as the case may be, and shall be enforceable against it or them and not against the Central Government.
(2) Any liability of the undertaking arising in respect of-
(i) deposits collected from consumers for use of gas cylinders and pressure regulators and from agents, and
(ii) provision for gratuity to officers and employees employed in or in connection with the undertaking, and current liabilities relating to sundry creditors and accrued expenses of the undertaking shall, on and from the appointed day, be the liabilities of the Central Government and shall be discharged by the Central Government.
(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 liabilities other than the liabilities specified in subjection (2), in relation to the undertaking in respect of any period prior to the appointed day, shall be enforceable against the Central Government;
(b) no award, decree or order of any court, tribunal or other authority or any settlement in relation to the 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;
(c) no liability of the undertaking or of Gocul Gas Private Limited and Kosangas company or its partners for the contravention, before the appointed day, of any provision of law for the time being in force, shall be enforceable against the Central Government;
(d) no liability of Gocul Gas Private Limited or Kosangas company to the Directors of Gocul Gas Private Limited or to the partners of Kosangas company, and no liability for income-tax of Gocul Gas Private Limited, or of Kosangas company or the partners of Kosangas company, whether or not any such liability relates to the undertaking, shall be enforceable against the Central Government.
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