Burn Company and Indian Standard Wagon Company (Nationalisation) Act ,1976
Act No : 97
Section : OWNERS OF THE TWO COMPANIES TO BE LIABLE FOR CERTAIN PRIOR LIABILITIES
SECTION 05: OWNERS OF THE TWO COMPANIES TO BE LIABLE FOR CERTAIN PRIOR LIABILITIES
(1) Every liability, other than the liability specified in sub-section (2), of each of the two companies in respect of any period prior to the appointed day, shall be the liability of the concerned company and shall be enforceable against it, and not against the Central Government; or, where the undertakings of the two companies are directed, under section 6-. to vest in a Government company, against that Government company.
(2) Any liability arising in respect of-
(a) the loans advanced by the Central Government, or a State Government, or both, to either of the two companies, or to both (together with interest due thereon) after the management of the undertakings of the concerned company had been taken over by the Central Government.
(b) the wages, salaries and other dues of employees of each of the two companies in respect of any period after the management of the undertakings of the two companies had been taken over by the Central Government, shall, on and from the appointed day, be the liability of the Central Government or of the Government company aforesaid and shall be discharged by that Government or Government company, 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 provision of this Act. no liability, other than the liability specified in sub-section (2), of either of the two companies in relation to its undertaking in respect of any period prior to the appointed day, shall be enforceable against the Central Government, or, where the undertakings of the two companies are directed, under section 6-, to vest in a Government company, against that Government company:
(b) no award, decree or order of any court, tribunal or other authority in relation to the undertakings of either of the two companies, passed after the appointed day, in respect of any matter, claim or dispute, not being a matter, claim or dispute in relation to any matter referred to in sub-section (2), which arose before that day, shall be enforceable against the Central Government or, where the undertakings of the two companies are directed that section 6-, to vest in a Government company against that Government company;
(c) no liability incurred by either of the two companies 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, where the undertakings of-the two companies are directed, under section 6-, to vest in a Government company, against that Government company.
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