THE SICK TEXTILE UNDERTAKINGS (NATIONALISATION) ACT, 1974                                                                                                                                        

_______ 

ARRANGEMENT OF SECTIONS                                                                                                            

SECTIONS 

1. Short title and commencement. 

2. Definitions. 

________ 

CHAPTER I 

PRELIMINARY 

CHAPTER II 

ACQUISITION OF THE RIGHTS OF OWNERS OF SICK TEXTILE UNDERTAKINGS 

3. Acquisition of rights of owners in respect of sick textile undertakings. 

4. General effect of vesting. 

5. Owner to be liable for certain prior liabilities. 

6. National Textile Corporation to form subsidiary corporations. 

7. Shares to be issued by the National Textile Corporation for the value of the assets transferred to 

it by the Central Government. 

CHAPTER III 

PAYMENT OF AMOUNT 

8. Payment of amount to owners of sick textile undertakings. 

9. Payment of further amount. 

10. Accounts to be rendered by the owners of sick textile undertakings. 

CHAPTER IV 

MANAGEMENT, ETC., OF SICK TEXTILE UNDERTAKINGS 

11. Management, etc., of sick textile undertakings. 

11A.  Special  provision  for  disposal  of  assets  of  the  sick  textile  undertakings  in  certain 

circumstances. 

12. Duty of persons in charge of management of sick textile undertakings to deliver all assets, etc. 

13. Accounts. 

PROVISIONS RELATING TO EMPLOYEES OF SICK TEXTILE UNDERTAKINGS 

CHAPTER V 

14. Employment of certain employees to continue. 

15. Provident and other funds. 

16. Transfer of employees to a Subsidiary Textile Corporation. 

CHAPTER VI 

COMMISSIONERS OF PAYMENTS 

17. Appointment of Commissioners of Payments. 

18. Payment by the Central Government to the Commissioner. 

19. Certain powers of the National Textile Corporation. 

20. Claims to be made to the Commissioner. 

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SECTIONS 

21. Priority of claims. 

22. Examination of claims. 

23. Admission or rejection of claims. 

24. Disbursement of money by the Commissioner to claimants. 

25. Disbursement of amounts to the owners of sick textile undertakings. 

26. Undisbursed or unclaimed amounts to be deposited to the general revenue account. 

CHAPTER VII 

MISCELLANEOUS 

27. Assumption of liability. 

28. Management to continue to vest in the Custodian until alternative arrangements are made. 

29. Act to override all other enactments. 

30. Contracts to cease to have effect unless ratified by National Textile Corporation. 

31. Transfer of assets, etc., to be void in certain cases. 

32. Penalties. 

33. Offences by companies. 

34. Protection of action taken in good faith. 

35. Textile companies not to be wound up by the court. 

36. Delegation of powers. 

37. Power to make rules. 

38. Power to remove difficulties. 

39. Declaration as to the policy of the State. 

40. Repeal and savings. 

41. Validation. 

THE FIRST SCHEDULE. 

THE SECOND SCHEDULE. 

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THE SICK TEXTILE UNDERTAKINGS (NATIONALISATION) ACT, 1974 

ACT NO. 57 OF 1974 

[21st December, 1974.] 

An Act to provide for the acquisition and transfer of the sick textile undertakings, and the right, 
title  and  interest  of  the  owners  in  respect  of  the  sick  textile  undertakings,  specified  in  the 
First Schedule with a view to re-organising and rehabilitating such sick textile undertakings 
so  as  to  subserve  the  interests  of  the  general  public  by  the  augmentation  of  the  production 
and  distribution,  at  fair  prices,  of  different  verieties  of  cloth  and  yarn,  and  for  matters 
connected therewith or incidental thereto. 

BE it enacted by Parliament in the Twenty-fifth Year of the Republic of India as follows:— 

CHAPTER I 

PRELIMINARY 

1.  Short  title  and  commencement.—(1)  This  Act  may  be  called  the  Sick  Textile  Undertakings 

(Nationalisation) Act, 1974. 

(2) The provisions of sections 32 and 33 shall come into force at once and the remaining provisions of 

this Act shall be deemed to have come into force on the 1st day of April, 1974. 

2. Definitions.—(1) In this Act, unless the context otherwise requires,— 

(a) “appointed day” means the 1st day of April, 1974; 

(b) “bank” means— 

(i) the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955); 

(ii)  a  subsidiary  bank  as  defined  in  the  State  Bank  of  India  (Subsidiary  Banks)                   

Act, 1959 (38 of 1959); 

(iii)  a  corresponding  new  bank  constituted  under  section  3  of  the  Banking  Companies 

(Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970); 

(iv)  any  other  bank,  being  a  scheduled  bank  as  defined  in  clause  (e)  of  section  2  of  the 

Reserve Bank of India Act, 1934 (2 of 1934); 

(c) “Commissioner” means a Commissioner of Payments appointed under section 17; 

(d) “Custodian” means a Custodian appointed under section 5 of the Sick Textile Undertakings 
(Taking Over of Management) Act, 1972 (72 of 1972), and includes the person, or body of persons 
authorised by the Central Government to take over the management of a textile undertaking under the 
Industries (Development and Regulation) Act, 1951 (65 of 1951); 

(e) “National Textile Corporation” means the National Textile Corporation Limited, formed and 

registered under the Companies Act, 1956 (1 of 1956); 

(f) “notification” means a notification published in the Official Gazette; 

(g)  “Ordinance”  means 

the  Sick  Textile  Undertakings 

(Nationalisation)  Ordinance,                  

1974 (12 of 1974); 

(h) “owner”, when used in relation to a sick textile undertaking, means any person or firm who or 
which is, immediately before the appointed day, the immediate proprietor or lessee or occupier of the 
sick  textile  undertaking  or  any  part  thereof,  and  in  the  case  of  a  textile  company  which  is  being 
wound  up  or  the  business  whereof  is  being  carried  on  by  a  liquidator  or  receiver,  includes  such 
liquidator or receiver, and also includes any agent or manager or such owner but does not include any 
person  or  body  of  persons  authorised  under  the  Industries  (Development  and  Regulation)               
Act,  1951  (65  of  1951),  or  the  Sick  Textile  Undertakings  (Taking  Over  of  Management)                
Act,  1972  (72  of  1972),  to  take  over  the  management  of  the  whole  or  any  part  of  the  sick  textile 
undertaking; 

(i) “prescribed” means prescribed by rules made under this Act; 

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(j)  “sick  textile  undertaking”  means  a  textile  undertaking,  specified  in  the  First  Schedule,  the 
management  of  which  has,  before  the  appointed  day,  been  taken  over  by  the  Central  Government 
under the Industries (Development and Regulation) Act, 1951 (65 of 1951), or as the case may be, 
vested in the Central Government under the Sick Textile Undertakings (Taking Over of Management) 
Act, 1972 (72 of 1972); 

(k)  “specified  date”  means  such  date  as  the  Central  Government  may,  for  the  purpose  of  any 
provision  of  this  Act,  by  notification,  specify;  and  different  dates  may  be  specified  for  different 
provisions of this Act; 

(l) “Subsidiary Textile Corporation” means a Textile Corporation formed by the National Textile 

Corporation as its subsidiary; 

(m) “textile” includes yarn or fabrics made either wholly or partly of cotton, wool, jute, synthetic 

and artificial (man-made) fibres; 

(n) “textile company” means a company specified in column (3) of the First Schedule as owning 

the textile undertaking specified in the corresponding entry in column (2) of that Schedule; 

(o)  “textile  undertaking”  means  an  undertaking  engaged  in  the  manufacture  of  textiles  and  to 

which the provisions of the Factories Act, 1948 (63 of 1948), apply. 

(2)  Words  and  expressions  used  but  not  defined  in  this  Act  and  defined  in  the  Industries 
(Development and Regulation) Act, 1951 (65 of 1951), shall have the meanings respectively assigned to 
them in that Act. 

(3) Words and expressions used but not defined either in this Act or in the Industries (Development 
and Regulation) Act, 1951 (65 of 1951), but defined in the Companies Act, 1956 (1 of 1956), shall have 
the meanings respectively assigned to them in the Companies Act, 1956. 

CHAPTER II 

ACQUISITION OF THE RIGHTS OF OWNERS OF SICK TEXTILE UNDERTAKINGS 

3. Acquisition of rights of owners in respect of sick textile undertakings.—(1) On the appointed 
day, every sick textile undertaking and the right, title and interest of the owner in relation to every such 
sick textile undertaking shall stand transferred to, and shall vest absolutely in, the Central Government. 

(2)  Every  sick  textile  undertaking  which  stands  vested  in  the  Central  Government  by  virtue  of       

sub-section (1) shall, immediately after it has so vested, stand transferred to, and vested in, the National 
Textile Corporation. 

1[(3) Notwithstanding the transfer and vesting of any sick textile undertaking to the National Textile 
Corporation  by  virtue  of  sub-section  (2),  the  lease-hold  rights  of  the  sick  textile  undertakings  shall 
continue  to  remain  vested  in  the  Central  Government  on  payment  of  lease-hold  rents  and  shall  be 
discharged,  for  and  on  behalf  of  that  Government,  by  the  National  Textile  Corporation  as  and  when 
payment of such lease-hold rents or any amount becomes due and payable. 

(4) Subject to sub-section (3), no court shall have jurisdiction to order divestment from the National 

Textile Corporation of the property vested in it by the Central Government.] 

4.  General  effect  of  vesting.—(1)  The  sick  textile  undertaking  referred  to  in  section  3  shall  be 
deemed  to  include  all  assets,  rights,  lease-holds,  powers,  authorities  and  privileges  and  all  property, 
movable  and  immovable,  including  lands,  buildings,  workshops,  stores,  instruments,  machinery  and 
equipment, cash balances, cash on hand, reserve funds, investments and book debts 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 the owner of the sick textile undertaking, whether within or 
outside  India,  and  all  books  of  account,  registers  and  all  other  documents  of  whatever  nature  relating 
thereto and shall also be deemed to include the liabilities and obligations specified in sub-section (2) of 
section 5. 

1. Ins. by Act 36 of 2014, s. 2 (w.e.f. 17-12-2014). 

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(2) All property as aforesaid which have vested in the Central Government under sub-section (1) of 
section  3 shall,  by  force  of  such  vesting,  be freed and  discharged  from  any  trust,  obligation,  mortgage, 
charge, lien and all other incumbrances affecting it, and any attachment, injunction or decree or order of 
any court restricting the use of such property in any manner shall be deemed to have been withdrawn. 

(3) Where any licence or other instrument in relation to a sick textile undertaking had been granted at 
any  time  before  the  date  on  which  the  Ordinance  was  promulgated,  to  an  owner  by  the  Central 
Government or a State Government or any other authority, the National Textile Corporation shall, on and 
from  such  date,  be  deemed  to  be  substituted  in  such  licence  or  other  instrument  in  place  of  the  owner 
referred to therein as if such licence or other instrument had been granted to it and shall hold such licence 
or the sick textile undertaking specified in such other instrument for the remainder of the period for which 
the owner would have held such licence or the sick textile undertaking under such other instrument. 

(4) Every mortgagee of any property which has vested under this Act in the Central Government and 
every person holding any charge, lien or other interest in or in relation to any such property shall give, 
within such time and in such manner as may be prescribed, an intimation to the Commissioner of such 
mortgage, charge, lien or other interest. 

(5) For the removal of doubts, it is hereby declared that the mortgagee of any property referred to in 
sub-section (2) or any other 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 and interests, payment of the mortgage 
money or other dues, in whole or in part, out of the amount specified in relation to such property in the 
First  Schedule,  but  no  such  mortgage,  charge,  lien  or  other  interest  shall  be  enforceable  against  any 
property which has vested in the Central Government. 

(6) If, on the appointed day, any suit, appeal or other proceeding of whatever nature in relation to any 
matter  specified  in  sub-section  (2)  of  section  5  in  respect  of  the  sick  textile  undertaking,  instituted  or 
preferred by or against the textile company, is pending, the same shall not abate, be discontinued or be, in 
any  way,  prejudicially  affected  by  reason  of  the  transfer  of  the  sick  textile  undertaking  or  of  anything 
contained in this Act but the suit, appeal or other proceeding may be continued, prosecuted and enforced 
by or against the National Textile Corporation. 

(7) Any person, who, on the date on which the Ordinance was promulgated, was in possession of, or 
had  under  his  custody  or  control,  the  whole  or  any  part  of  any  sick  textile  undertaking  referred  to  in 
section 3, the management of which could not be taken over by the Central Government by reason of any 
decree,  order  or  injunction  of  any  court  or  otherwise,  shall  deliver  forthwith  the  possession  of  such 
undertaking or part and all books of account, registers and all other documents of whatever nature relating 
to such undertaking or part to the Central Government or the National Textile Corporation or such other 
person as the Central Government or the National Textile Corporation, as the case may be, may specify in 
this behalf. 

1[(8)  Notwithstanding  the  fact  that  the  textile  operations  have  been  discontinued  in  any  sick  textile 
undertaking  being  revived,  shall  for  all  effects  and  purposes  be  deemed  that  the  textile  operations  are 
being continued and no suit or proceeding shall be instituted or if instituted be maintainable against the 
National  Textile  Corporation  on  the  ground  that  it  has  discontinued  such  activity  in  the  sick  textile 
undertaking. 

(9)  For  the  removal  of  doubts,  it  is  hereby  declared  that  the  continued  deemed  vesting  of  the        

lease-hold land in the Central Government shall not affect, impair or in any manner prejudice the rights of 
the National Textile Corporation to prosecute or defend any proceedings as a subsequent vestee in respect 
of any such lease-hold rights and no such proceedings shall fail only on account of the non-impleadment 
of that Government.] 

5.  Owner  to  be  liable  for  certain  prior  liabilities.—(1)  Every  liability,  other  than  the  liability 
specified in sub-section (2) of the owner of a sick textile undertaking, 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. 

1. Ins. by Act 36 of 2014, s. 3 (w.e.f. 17-12-2014). 

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(2) Any liability arising in respect of— 

(a) loans advanced by the Central Government, or a State Government, or both, to a sick textile 
undertaking (together with interest due thereon) after the management of such undertaking had been 
taken over by the Central Government. 

(b)  amounts  advanced  to  a  sick  textile  undertaking  (after  the  management  of  such  undertaking 
had been taken over by the Central Government), 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 sick textile undertaking, in respect of any 

period after the management of such undertaking had 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 sick 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 sick 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 sick textile undertaking or any owner thereof 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 or the National Textile Corporation. 

Explanation.—In  this  section,  “State  Textile  Corporation”  means  a  corporation,  formed  and 
registered under the Companies Act, 1956 (1 of 1956), in a State, which is in charge of the management 
of  a  sick  textile  undertaking  either  as  a  person  authorised  under  the  Industries  (Development  and 
Regulation)  Act,  1951  (65  of  1951),  or  as  the  Custodian  under  the  Sick  Textile  Undertakings  (Taking 
Over  of  Management)  Act,  1972  (72  of  1972)  and includes  the  West  Bengal  State Textile  Corporation 
Limited which has advanced amounts to sick textile undertakings in the State. 

6.  National  Textile  Corporation  to  form  subsidiary  corporations.—(1)  The  National  Textile 
Corporation may, if it considers it necessary so to do, form subsidiary corporations under the Companies 
Act, 1956 (1 of 1956), and register them under that Act. 

(2) The National Textile Corporation may, by order in writing, transfer any sick textile undertaking or 
part thereof to a Subsidiary Textile Corporation and any such transfer shall be subject to such terms and 
conditions as may be specified in the said order. 

(3) The Subsidiary Textile Corporation shall, on and from the date of such transfer, be deemed to be 
substituted  in  the  licence  or  other  instrument  referred  to  in  sub-section  (3)  of  section  4  in  place  of  the 
National  Textile  Corporation  as  if  such  licence  or  other  instrument  had  been  granted  to  the  Subsidiary 
Textile Corporation, and shall hold such licence or other instrument for the remainder of the period for 
which the National Textile Corporation would have held such licence or other instrument. 

(4)  On  the  transfer  to  a  Subsidiary  Textile  Corporation  of  any  sick  textile  undertaking  or  any  part 
thereof, the liabilities required to be discharged by the National Textile Corporation under sub-section (2) 
of section 5, shall, in so far as they relate to the sick textile undertaking or part thereof so transferred to 
the  Subsidiary  Textile  Corporation,  be  discharged,  on  and  from  the  date  of  such  transfer,  by  the 
Subsidiary Textile Corporation as and when any such liability is required to be discharged. 

(5)  Save  as  otherwise  expressly  provided  in this  Act,  references in  this  Act  to the  National Textile 
Corporation shall, in respect of any sick textile undertaking or any part thereof which is transferred to a 
Subsidiary Textile Corporation, be construed as references to the Subsidiary Textile Corporation. 

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7. Shares to be issued by the National Textile Corporation for the value of the assets transferred 
to  it  by  the  Central  Government.—(1)  An  amount  equal  to  the  value  of  the  assets  of  a  sick  textile 
undertaking  transferred  to,  and  vested  in,  the  National  Textile  Corporation  under  sub-section  (2)  of 
section 3, shall be deemed to be the contribution made by the Central Government to the equity capital of 
the National Textile Corporation; and for the contribution so made, the National Textile Corporation shall 
issue (if necessary after amending its memorandum and articles of association) to the Central Government 
paid-up  shares,  in  its  equity  capital,  having  a  face  value  equal  to  the  amount  specified  against  the  sick 
textile undertaking in the corresponding entry in column (4) of the First Schedule. 

(2)  Where  any  liability  assumed  by  the  Central  Government  under  this  Act  is  taken  over  by  the 
National  Textile  Corporation  under  section  27,  the  Central  Government  shall  surrender  to  that 
Corporation the shares issued to it under sub-section (1) having the face value equal to the amount to the 
extent to which the liability has been so taken over by the National Textile Corporation and thereupon the 
share  capital  of  the  National  Textile  Corporation  shall,  to  the  extent  of  the  face  value  of  the  shares  so 
surrendered, stand reduced. 

CHAPTER III 

PAYMENT OF AMOUNT 

8.  Payment  of  amount  to  owners  of  sick  textile  undertakings.—The  owner  of  every  sick  textile 
undertaking shall be given by the Central Government, in cash and in the manner specified in Chapter VI, 
for the transfer to, and vesting in, it, under sub-section (1) of section 3, of such sick textile undertaking 
and the right, title and interest of the owner in relation to such sick textile undertaking, an amount equal to 
the amount specified against it in the corresponding entry in column (4) of the First Schedule. 

9. Payment of further amount.—(1) In consideration of the retrospective operation of the provisions 
of sections 3, 4 and 5, there shall be given, in cash, by the Central Government, to the owner of every sick 
textile  undertaking,  the  management  of  which  was  taken  over  by  the  Central  Government,  an  amount 
equal to an amount calculated at the rate specified in section 6 of the Sick Textile Undertakings (Taking 
Over  of  Management)  Act,  1972  (72  of  1972),  for  the  period  commencing  on  the  appointed  day  and 
ending on the date on which the Ordinance was promulgated. 

(2) In addition to the amount referred to in section 8, there shall be given by the Central Government, 
in  cash,  to  the  owner  of  every  sick  textile  undertaking,  simple  interest  at  the  rate  of  four  per  cent.  per 
annum on the amount specified against such owner in the corresponding entry in column (4) of the First 
Schedule for the period commencing on the date on which the Ordinance was promulgated, and ending on 
the date on which payment of such amount is made by the Central Government to the Commissioner. 

(3) The amount representing interest calculated at the rate specified in sub-section (2) shall be given 

in addition to the amount specified in the First Schedule. 

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  (5  of  1951),  or,  as  the  case  may  be,  on  the  date  of 
commencement of the Sick Textile Undertakings (Taking Over of Management) Act, 1972 (72 of 1972), 
and ending on the date on which the management of the sick textile undertaking 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 

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(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 
sub-section (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 undertaking 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  incumbrance  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  incumbrance  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.  

CHAPTER IV 

MANAGEMENT, ETC., OF SICK TEXTILE UNDERTAKINGS 

11.  Management,  etc.,  of  sick  textile  undertakings.—The  National  Textile  Corporation  or  any 
person which that Corporation may, by order in writing, specify, shall be entitled to exercise the powers 
of general superintendence, direction, control and management of the affairs and business of a sick textile 
undertaking, the right, title and interest of an owner in relation to which have vested in that Corporation 
under sub-section (2) of section 3, and do all such things as the owner of the sick textile undertaking is  
authorised to exercise and do. 

1[11A.  Special  provision  for  disposal  of  assets  of  the  sick  textile  undertakings  in  certain 
circumstances.—If  the  National  Textile  Corporation  considers  it  necessary  or  expedient  for  the  better 
management, modernisation, restructuring  or revival of a sick textile undertaking so to do, it may, with 
the  previous  sanction  of  the  Central  Government,  transfer,  mortgage,  sell  or  otherwise  dispose  of  any 
land, plant, machinery or any other assets of any of the sick textile undertakings: 

Provided  that  the  proceeds  of  no  such  transfer,  mortgage,  sale  or  disposal  shall  be  utilised  for  any 

purpose other than the purpose for which the sanction of the Central Government has been obtained.] 

12. Duty of persons in charge of management of sick textile  undertakings to deliver all assets, 
etc.—On the vesting of the management of a sick textile undertaking in the National Textile Corporation 
all persons in charge of the management of such sick textile undertaking immediately before such vesting 
shall  be  bound  to  deliver  to  the  National  Textile  Corporation  all  assets,  books  of  account,  registers  or 
other documents in their custody relating to the sick textile undertaking. 

13.  Accounts.—The  National  Textile  Corporation  shall  maintain  the  accounts  of  sick  textile 

undertakings in accordance with the provisions of the Companies Act, 1956 (1 of 1956). 

CHAPTER V 

PROVISIONS RELATING TO EMPLOYEES OF SICK TEXTILE UNDERTAKINGS 

14. Employment of certain employees to continue.—(1) Every person who is a workman within the 
meaning  of  the  Industrial  Disputes  Act,  1947  (14  of  1947),  and  has  been,  immediately  before  the 
appointed day, employed in a sick textile undertaking shall become, on and from the appointed day, an 
employee  of  the  National  Textile  Corporation,  and  shall  hold  office  or  service  in  the  National  Textile 
Corporation with the same rights and privileges as to pension, gratuity and other matters as would have 
been admissible to him if the rights in relation to such sick textile undertaking had not been transferred to, 
and  vested  in,  the  National  Textile  Corporation,  and  shall  continue  to  do  so  unless  and  until  his 

1. Ins. by Act 40 of 1995, s. 2 (w.e.f. 8-9-1995). 

8 

 
                                                           
employment in the National Textile Corporation is duly terminated or until his remuneration, terms and 
conditions of employment are duly altered by the National Textile Corporation. 

(2)  Every  person  who  is  not  a  workman  within  the  meaning  of  the  Industrial  Disputes                    

Act,  1947  (14  of  1947),  and  who  has  been,  immediately  before  the  appointed  day,  employed  in  a  sick 
textile  undertaking  shall,  in  so  far  as  such  person  is  employed  in  connection  with  the  sick  textile 
undertaking which has vested in the National Textile Corporation, become, as from the appointed day, an 
employee  of  the  National  Textile  Corporation  and  shall  hold  his  office  or  service  therein  by  the  same 
tenure, at the same remuneration and upon the same terms and conditions and with the same rights and 
privileges  as  to  pension  and  gratuity  and  other  matters  as  he  would  have  held  the  same  under  the  sick 
textile  undertaking  if  it  had  not  vested  in  the  National  Textile  Corporation  and  shall  continue  to  do  so 
unless  and  until  his  employment  in  the  National  Textile  Corporation  is  duly  terminated  or  until  his 
remuneration, terms and conditions of employment are duly altered by the National Textile Corporation: 

Provided that in respect of any sick textile undertaking the management of which could not be taken 

over  by  the  Central  Government  under  the  Sick  Textile  Undertakings  (Taking  Over  of  Management)   
Act,  1972  (72  of  1972),  by  reason  of  any  decree,  order  or  injunction  of  any  court,  any  agent,  director 
(including a managing or whole-time director, by whatever name called) or manager shall not become an 
employee of the National Textile Corporation. 

(3) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1947), or in any 
other law for the time being in force, the transfer of the services of any officer or other person employed 
in  a  sick  textile  undertaking  to  the  National  Textile  Corporation  shall  not  entitle  such  officer  or  other 
employee to any compensation under this Act or any other law for the time being in force and no such 
claim shall be entertained by any court, tribunal or other authority. 

(4)  Where,  under  the  terms  of  any  contract  of  service  or  otherwise,  any  person  whose  services 
become terminated or whose services become transferred to the National Textile Corporation by reason of 
the provisions of this Act is entitled to any arrears of salary or wages or any  payment for any leave not 
availed of or other payment, not being payment by way of gratuity or pension, such person may, except to 
the extent such liability has been taken over by the Central Government under section 5, enforce his claim 
against the owner of the sick textile undertaking but not against the Central Government or the National 
Textile Corporation. 

15. Provident and other funds.—(1) Where the owner of a sick textile undertaking has established a 
provident fund, superannuation, welfare or other fund for the benefit of the persons employed in such sick 
textile undertaking the monies relatable to the employees, whose services have become transferred by or 
under this Act to the National Textile Corporation shall, out of the monies standing, on the appointed day, 
to the credit of such provident fund, superannuation, welfare or other fund, stand transferred to, and shall 
vest in, the National Textile Corporation. 

(2)  The  monies  which  stand  transferred,  under  sub-section  (1),  to  the  National  Textile  Corporation 

shall be dealt with by that Corporation in such manner as may be prescribed. 

16.  Transfer  of  employees  to  a  Subsidiary  Textile  Corporation.—Where  any  sick  textile 
undertaking or any part thereof is transferred under this Act to a Subsidiary  Textile Corporation, every 
person referred to in sub-section (1) and sub-section (2) of section 14 shall, on and from the date of such 
transfer,  become  an  employee  of  the  Subsidiary  Textile  Corporation,  and  the  provisions  of  sections  14 
and 15 shall apply to such employee as they apply to an employee of the National Textile Corporation as 
if  references  in  the  said  sections  to  the  National  Textile  Corporation  were  references  to  the  Subsidiary 
Textile Corporation. 

CHAPTER VI 

COMMISSIONERS OF PAYMENTS 

17. Appointment of Commissioners of Payments.—(1) For the purpose of disbursing the amounts 
payable to the owner of each sick textile undertaking, the Central Government shall, by notification in the 
Official Gazette,— 

(a) appoint such number of persons as it may think fit to be Commissioners of Payments; and 

(b) define the local limits within which the Commissioners of Payments shall exercise the powers 

conferred, and perform the duties imposed, on them by or under this Act. 

9 

 
(2)  The  Central  Government  may  appoint  such  other  persons  as  it  may  think  fit  to  assist  the 
Commissioner  and  thereupon  the  Commissioner  may  authorise  one  or  more  of  such  persons  also  to 
exercise  all  or  any  of  the  powers  exercisable  by  him  under  this  Act,  and  different  persons  may  be 
authorised to exercise different powers. 

(3) Any person authorised by the Commissioner to exercise any powers may exercise those powers in 
the same manner and with the same effect as if they have been conferred 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 under this section 

shall be defrayed out of the Consolidated Fund of India. 

(5) References in this Act to the Commissioner shall, where more than one  Commissioner has been 
appointed,  be  construed  as  references  to  the  Commissioner  in  relation  to  the  sick  textile  undertaking 
within the local limits of the jurisdiction specified under clause (b) of sub-section (1). 

18.  Payment  by  the  Central  Government  to  the  Commissioner.—(1)  The  Central  Government 
shall,  within  thirty  days  from  the  specified  date,  pay  in  cash  to  the  Commissioner,  for  payment  to  the 
owner  of  a  sick  textile  undertaking,  an  amount  equal  to  the  amount  specified  against  the  sick  textile 
undertaking in the First Schedule and shall also pay to the Commissioner such sums as may be due to the 
owner of a sick textile undertaking under sub-sections (1) and (2) of section 9. 

(2)  In  relation  to  the  sick  textile  undertakings,  the  management  of  which  was  taken  over  by  the 
Central  Government  under  the  Industries  (Development  and  Regulation)  Act,  1951  (5  of  1951),  there 
shall be paid by the Central Government [in addition to the amount referred to in sub-section (1)], to the 
Commissioner,  in  cash,  an  amount  calculated  at  the  rate  specified  in  section  6  of  the  Sick  Textile 
Undertakings (Taking Over of Management) Act, 1972 (72 of 1972), for the period commencing on the 
date on which such management was taken over by the Central Government and ending on the appointed 
day. 

(3)  In  relation  to  the  sick  textile  undertakings,  the  management  of  which  was  taken  over  by  the 

the  Sick  Textile  Undertakings 

Central  Government  under 
Act, 1972 (72 of 1972), there shall be paid by the Central Government [in addition to the amount referred 
to in sub-section (1)], to the Commissioner, in cash, such amount payable under section 6 of that Act as 
remains unpaid in relation to the period commencing on the date on which such management was taken 
over by the Central Government and ending on the appointed day. 

(Taking  Over  of  Management)                       

(4) A deposit account shall be opened by the Central Government, in favour of the Commissioner, in 
the  Public  Account  of  India,  and  every  amount  paid  under  this  Act  to  the  Commissioner  shall  be 
deposited by him to the credit of the said deposit account in the Public Account of India, and thereafter 
the said deposit account shall be operated by the Commissioner. 

(5)  Separate  records  shall  be  maintained  by  the  Commissioner  in  respect  of  each  sick  textile 

undertaking in relation to which payments have been made to him under this Act. 

(6)  Interest  accruing  on  the  amounts  standing  to  the  credit  of  the  deposit  account  referred  to  in        

sub-section (4) shall inure to the benefit of the owners of the sick textile undertakings. 

19.  Certain  powers  of  the  National  Textile  Corporation.—(1)  The  National  Textile  Corporation 
shall be entitled to receive, up to the specified date, to the exclusion of all other persons, any money due 
to  the  sick  textile  undertaking,  realised  after  the  appointed  day,  notwithstanding  that  the  realisations 
pertain to a period prior to the appointed day. 

(2) The  National Textile  Corporation  may  make  a  claim  to  the  Commissioner  with regard  to every 
payment made by the Custodian after the appointed day but before the date on which the Ordinance was 
promulgated  for  discharging  any  liability  of  the  owner  of  a  sick  textile  undertaking  in  relation  to  any 
period  prior  to  the  appointed  day,  and  every  such  claim  shall  have  priority,  in  accordance  with  the 
priorities attaching under this Act, to the matter in relation to which such liability has been discharged by 
the Custodian. 

(3) Save as otherwise provided in this Act, the liabilities in relation to  a sick textile undertaking in 
respect of any period prior to the appointed day which have not been discharged by the Custodian shall be 
the liabilities of the owner of that sick textile undertaking. 

10 

 
20. Claims to be made to the Commissioner.—Every person having a claim against the owner of a 
sick  textile  undertaking  shall  prefer  such  claim  before  the  Commissioner  within  thirty  days  from  the 
specified date: 

Provided  that  if  the  Commissioner  is  satisfied  that  the  claimant  was  prevented  by  sufficient  cause 
from preferring the claim within the said period of thirty days, he may entertain the claim within a further 
period of thirty days but not thereafter. 

21. Priority of claims.—The claims arising out of the matters specified in the Second Schedule shall 

have priorities in accordance with the following principles, namely:— 

(a) category I will have precedence over all other categories, and category II will have precedence 

over category III and so on; 

(b) the claims specified in each of the categories except  Category IV, shall rank equally and be 
paid  in  full,  but  if  the  amount  is  insufficient  to  meet  such  claims  in  full,  they  shall  abate  in  equal 
proportions and be paid accordingly; 

(c) the liabilities specified in category IV shall be discharged, subject to the priorities specified in 
this  section,  in  accordance  with  the  terms  of  the  secured  loans  and  the  priority,  inter  se,  of  such  
loans; and 

(d)  the  question  of  payment  of  a  liability  with  regard  to  a  matter  specified  in a  lower  category 
shall arise only if a surplus is left after meeting all the liabilities specified in the immediately higher 
category. 

22. Examination of claims.—(1) On receipt of the claims under section 20, the Commissioner shall 
arrange  the  claims  in  the  order  of  priority  specified  in  the  Second  Schedule  and  examine  the  same  in 
accordance with the said order. 

(2) If on examination of the claims, the Commissioner is of the opinion that the amount paid to him 
under  this  Act  is  not  sufficient  to  meet  the  liabilities  specified  by  any  lower  category,  he  shall  not  be 
required to examine the liabilities in respect of such lower category. 

23. Admission or rejection of claims.—(1) After examining the claims with reference to the priority 
set  out  in  the  Second  Schedule,  the  Commissioner  shall  fix  a  certain  date  on  or  before  which  every 
claimant shall file the proof of his claim or be excluded from the benefit of the disbursement made by the 
Commissioner. 

(2)  Not less  than fourteen days‟  notice  of  the  date  so  fixed  shall  be  given  by  advertisement  in  one 
issue of the daily newspaper in the English language and one issue of the daily newspaper in the regional 
language as the Commissioner may consider suitable, and every such notice shall call upon the claimant 
to file the proof of his claim with the Commissioner within the time specified in the advertisement. 

(3)  Every  claimant  who  fails  to  file  the  proof  of  his  claim  within  the  time  specified  by  the 

Commissioner shall be excluded from the disbursements made by the Commissioner. 

(4) The Commissioner shall, after such investigation as may, in his opinion, be necessary and after 
giving the sick textile undertaking an opportunity of refuting the claim and after giving the claimants a 
reasonable opportunity of being heard, in writing, admit or reject the claim in whole or in part. 

(5) The Commissioner shall have the power to regulate his own procedure in all matters arising out of 
the discharge of his functions including the place or places at which he will hold his sittings 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 (5 of 1908), while trying a suit, in respect of the following 
matters, namely:— 

(a) the summoning and enforcing the attendance of any witness and examining him on oath; 

(b)  the  discovery  and  production  of  any  document  or  other  material  object  producible  as 

evidence; 

11 

 
 
 
(c) the reception of evidence on affidavits; 

(d) the issuing of any commission for the examination of witnesses. 

(6) Any investigation before the Commissioner shall be deemed to be a judicial proceeding within the 
meaning of sections 193 and 228 of the Indian Penal Code (45 of 1860) and the Commissioner shall be 
deemed to be a  civil court for the purposes of section 195 and Chapter XXVI  of the Code of Criminal 
Procedure, 1973 (2 of 1974). 

(7)  A  claimant  who  is  dissatisfied  with  the  decision  of  the  Commissioner  may  prefer  an  appeal 
against  the  decision  to  the  principal  civil  court  of  original  jurisdiction  within  the  local  limits  of  whose 
jurisdiction the sick textile undertaking is situated: 

Provided that where a person who is a Judge of a High Court is appointed to be the Commissioner, 
such appeal shall lie to the High Court for the State in which the sick textile undertaking is situated, and 
such appeal shall be heard and disposed of by not less than two Judges of that High Court. 

24.  Disbursement  of  money  by  the  Commissioner  to  claimants.—After  admitting  a  claim  under 
this Act, the amount due in respect of such claim shall be credited by the Commissioner to the relevant 
fund or be paid to the person or persons to whom such sums are due and on such credit or payment the 
liability of the owner in respect of such claim shall stand discharged. 

25. Disbursement of amounts to the owners of sick textile undertakings.—(1) If out of the monies 
paid to him in relation to a sick textile undertaking, there is a balance left after meeting the liabilities as 
specified in the Second Schedule, the Commissioner shall disburse such balance to the owner of such sick 
textile undertaking. 

(2) Before making any payment to the owner of any sick textile undertaking under sub-section (1), the 
Commissioner shall satisfy himself as to the right of such person to receive the whole or any part of such 
amount,  and  in  the  event  of  there  being  a  doubt  or  dispute  as  to  the  right  of  the  person  to  receive  the 
whole or any part of the amount referred to in sections 8 and 9, the Commissioner shall refer the matter to 
the court and make the disbursement in accordance with the decision of the court. 

(3) For the removal of doubts, it is hereby declared that the entries in column (3) of the First Schedule 
shall not be deemed to be conclusive as to the right, title and interest of any person in relation to any sick 
textile undertaking specified in the corresponding entries in column (2) of the said Schedule and evidence 
shall be admissible to establish the right, title and interest of any person in relation to such sick textile 
undertaking. 

(4) Where any machinery, equipment or other property in a sick textile undertaking has vested in the 
National  Textile  Corporation,  but  such  machinery,  equipment  or  other  property  does  not  belong  to  the 
owner of such sick textile undertaking, the amount specified in column (4) of the First Schedule against 
such sick textile undertaking shall, on a reference made to it by the Commissioner, be apportioned by the 
court between the owner of such sick textile undertaking and the owner of such machinery, equipment or 
other  property  having  due  regard  to  the  value  of  such  machinery,  equipment  or  other  property  on  the 
appointed day. 

Explanation.—In  this  section,  “court,”  in  relation  to  a  sick  textile  undertaking,  means  the  principal 
civil court of original jurisdiction within the local limits of whose jurisdiction the sick textile undertaking 
is situated. 

26. Undisbursed or unclaimed amounts to be deposited to the general revenue account.—Any 
money  paid  to  the  Commissioner  which  remains  undisbursed  or  unclaimed  for  a  period  of  three  years 
from the last day on which the disbursement was made, shall be transferred by the Commissioner to the 
general  revenue  account  of  the  Central  Government;  but  a  claim  to  any  money  so  transferred  may  be 
preferred to the Central Government by the person entitled to such payment and shall be dealt with as if 
such transfer had not been made, the order, if any, for payment of the claim being treated as an order for 
the refund of revenue. 

12 

 
 
 
CHAPTER VII 

MISCELLANEOUS 

27.  Assumption  of  liability.—(1)  Where  any  liability  of  the  owner  of  a  sick  textile  undertaking 
arising  out  of  any  item  specified  in  category  I  of  the  Second  Schedule  is  not  discharged  fully  by  the 
Commissioner out of the amount paid to him under this Act, the Commissioner shall intimate in writing 
to the Central Government the extent of the liability which remains undischarged, and that liability shall 
be assumed by the Central Government. 

(2) The Central Government may, by order, direct the National Textile Corporation to take over any 
liability assumed by that Government under sub-section (1), and on receipt of such direction, it shall be 
the duty of, the National Textile Corporation to discharge such liability. 

28.  Management  to  continue  to  vest  in  the  Custodian  until  alternative  arrangements  are 
made.—Notwithstanding the vesting, under this Act, of a sick textile undertaking in the National Textile 
Corporation,— 

(a)  the  Custodian  who  has  been  managing  the  affairs  of  such  undertaking  before  the  date  on 
which  the  Ordinance  was  promulgated  shall,  until  alternative  arrangements  have  been  made  by  the 
National Textile Corporation, continue to manage the affairs of such undertaking as if the Custodian 
had  been  authorised  by  the  National  Textile  Corporation  to  manage  the  affairs  of  such      
undertaking; and 

(b)  the  Custodian  or  any  person  authorised  by  him  for  this  purpose  shall,  until  alternative 
arrangements  have  been  made  by  the  National  Textile  Corporation,  continue  to  be  authorised  to 
operate, in  relation  to the sick  textile  undertaking,  any  account  of such  undertaking  in  a  bank  as  if 
such Custodian or the person authorised by the Custodian had been authorised by the National Textile 
Corporation to operate such account. 

 29.  Act  to  override  all  other  enactments.—The  provisions  of  this  Act  shall  have  effect 
notwithstanding anything inconsistent therewith contained in any other law for the time being in force or 
in any instrument having effect by virtue of any law other than this Act or in any decree or order of any 
court, tribunal or authority. 

30. Contracts to cease to have effect unless ratified by National Textile Corporation.—(1) Every 
contract  entered  into  by  the  owner  or  occupier  of  any  sick  textile  undertaking  for  any  service,  sale  or 
supply and in force immediately before the appointed day shall, on and from the expiry of one hundred 
and eighty days from the date on which this Act receives the assent of the President, cease to have effect 
unless  such  contract  is  before  the  expiry  of  that  period,  ratified,  in  writing,  by  the  National  Textile 
Corporation  and  in  ratifying  such  contract  the  National  Textile  Corporation  may,  with  the  previous 
approval of the Central Government, make such alterations or modifications therein as it may think fit: 

Provided that the National Textile Corporation shall not omit to ratify a contract, and shall not make 
any alteration or modification in a contract, unless it is satisfied that such contract is unduly onerous or 
has been entered into in bad faith or is detrimental to the interests of the sick textile undertaking. 

(2)  The  National  Textile  Corporation  shall  not  omit  to  ratify  a  contract,  and,  shall  not  make  any 
alteration  or  modification  therein,  except  after  giving  to  the  parties  to  the  contract  a  reasonable 
opportunity  of  being  heard  and  except  after  recording  in  writing  its  reasons  for  refusal  to  ratify  the 
contract or for making any alteration or modification therein. 

31. Transfer of assets, etc., to be void in certain cases.—(1) Except with the prior approval of the 
Central Government, no owner of a sick textile undertaking, specified in the Schedule to the Sick Textile 
Undertakings (Taking Over of Management) Act, 1972 (72 of 1972), the management of which could not 
be  taken  over  by  the  Central  Government  by  reason  of  any  decree,  order  or  injunction  of  any  court  or 
otherwise, shall, on and from the date of introduction of the Sick Textile Undertakings (Nationalisation) 
Bill,  1974,  in  the  House  of  the  People,  transfer,  by  sale,  mortgage  or  otherwise,  any  property  or  other 
assets  forming  part  of  the  said  sick  textile  undertaking  and  any  such  transfer  without  the  previous 
approval of the Central Government shall be void and inoperative. 

(2)  Any  person  who  contravenes  the  provisions  of  sub-section  (1)  shall  be  punishable  with 
imprisonment for a term which may extend to two years, or with fine which may extend to ten thousand 
rupees, or with both. 

13 

 
32. Penalties.—Any person who,— 

(a)  having  in  his  possession,  custody  or  control  any  property  forming  part  of  a  sick  textile 
undertaking wrongfully withholds such property from the Central Government or the National Textile 
Corporation, or any person authorised by that Government or Corporation, as the case may be, in this 
behalf, or 

(b)  wrongfully  obtains  possession  of,  or  retains,  any  property  forming  part  of  the  sick  textile 
undertaking or wilfully withholds or fails to furnish to the Central Government, the National Textile 
Corporation  or  any  person  specified  by  that  Government,  or  Corporation,  as  the  case  may  be,  any 
document relating to such sick textile undertaking which may be in his possession, custody or control 
or fails to deliver to the National Textile Corporation or any person specified by that Corporation any 
assets,  books  of  account,  registers  or  other  documents  in  his  custody  relating  to  the  sick  textile 
undertaking, or 

(c) wrongfully removes or destroys and property forming part of any sick textile undertaking or 
prefers  any  claim  under  this  Act  which  he  knows  or  has  reasonable  cause  to  believe  to  be false or 
grossly inaccurate, 

shall be punishable with imprisonment for a term which may extend to two years, or with fine which may 
extend to ten thousand rupees, or with both. 

33.  Offences  by  companies.—(1)  Where  an  offence  under  this  Act  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 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 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 
committed  by  a  company  and  it  is  proved  that  the  offence  has  been  committed  with  the  consent  or 
connivance of, or is 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. 

Explanation.—For the purposes of this section,— 

(a)  “company”  means  any  body  corporate  and  includes  a  firm  or  other  association  of    

individuals; and 

(b) “director”, in relation to a firm, means a partner in the firm. 

34. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall 
lie against the Central Government or any officer of that Government or the Custodian or the National 
Textile  Corporation  or  any  Subsidiary  Textile  Corporation  or  any  officer  or  other  person  authorised  by 
either of such Corporations for anything which is, in good faith done or intended to be done under this 
Act. 

35. Textile companies not to be wound up by the court.—No proceeding for the winding up of a 
textile  company,  the  right,  title  and  interest  in  relation  to  the  sick  textile  undertaking  owned  by  which 
have  vested  in  the  National  Textile  Corporation  under  this  Act  or  for  the  appointment  of  a  receiver  in 
respect of the business of the sick textile undertaking shall lie or be proceeded with in any  court except 
with the consent of the Central Government. 

36. Delegation of powers.—(1) The Central Government may, by notification, direct that all or any 
of  the  powers  exercisable  by  it  under  this  Act,  other  than  the  power  under  section  37,  may  also  be 
exercised by any person or persons as may be specified in the notification. 

(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. 

14 

 
 
37. Power  to  make rules.—(1) The  Central  Government  may,  by  notification,  make  rules  to  carry 

out the provisions of this Act. 

(2)  In  particular,  and  without  prejudice  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  the  manner  in  which  an  intimation  referred  to  in  sub-section  (4)  of 

section 4 shall be given; 

(b) the manner in which monies in any provident or other fund referred to in section 15 shall be 

dealt with; 

(c) any other matter which is required to be, or may be, prescribed. 

(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 or the successive sessions aforesaid, both Houses agree in making any 
modification in the rule or both Houses agree that the rule should 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 
modification or annulment shall be without prejudice to the validity of anything previously done under 
that rule. 

38. Power to remove difficulties.—If any difficulty arises in giving effect to the provisions of this 
Act, the Central Government may, by order not inconsistent with the provisions of this Act, remove the 
difficulty: 

Provided that no such order shall be made after the expiry of a period of two years from the date on 

which this Act receives the assent of the President. 

39. Declaration as to the policy of the State.—It is hereby declared that this Act is for giving effect 
to  the  policy  of  the  State  towards  securing  the  principles  specified  in  clause  (b)  of  article  39  of  the 
Constitution. 

Explanation.—In this section, “State” has the same meaning as in article 12 of the Constitution. 

40.  Repeal  and  savings.—(1)  The  Sick  Textile  Undertakings  (Nationalisation)  Ordinance,           

1974 (Ord. 12 of 1974), as hereby repealed. 

(2) Notwithstanding such repeal, anything done or any action taken under the Ordinance so repealed 

shall be deemed to have been done or taken under the corresponding provisions of this Act. 

1[41.  Validation.—Notwithstanding  anything  contained  in  any  judgment,  decree  or  order  of  any 

court, tribunal or other authority,— 

(a)  the  provisions  of  this  Act,  as  amended  by  the  Textile  Undertakings  (Nationalisation)  Laws 
(Amendment and Validation) Act, 2014 (36 of 2014), shall have and shall be deemed always to have 
effect for all purposes as if the provisions of this Act, as amended by the said Act, had been in force at 
all material times; 

(b) any lease-hold property divested from the National Textile Corporation to any person under 
the  provisions  of  this  Act,  as  it  stood  immediately  before  the  commencement  of  the  Textile 
Undertakings  (Nationalisation)  Laws  (Amendment  and  Validation)  Act,  2014  (36  of  2014),  shall 
stand transferred to and vest or continue to vest, free from all encumbrances, in the National Textile 
Corporation  in  the  same  manner  as  it  was  vested  in  the  National  Textile  Corporation  before  such 
divesting of that property under the provisions of this Act, as if the provisions of this Act as amended 
by the aforesaid Act, were in force at all material times; 

(c)  no  suit  or  other  proceedings  shall,  without  prejudice  to  the  generality  of  the  foregoing 
provisions, be maintained or continued in any court or tribunal or authority for the enforcement of any 
decree  or  order  or  direction  given  by  such  court  or  tribunal  or  authority,  notwithstanding  any 
undertaking filed by the National Textile Corporation in any court or tribunal or authority, directing 
divestment  of  such  lease-hold  property  from  the  National  Textile  Corporation  vested  in  it  under 
section  3  of  this  Act,  as  it  stood  before  the  commencement  of  the  Textile  Undertakings 

1. Ins. by Act 36 of 2014, s. 4 (w.e.f. 17-12-2014). 

15 

 
                                                           
(Nationalisation)  Laws  (Amendment  and  Validation)  Act,  2014  (36  of  2014),  and  such  lease-hold 
property  shall  continue  to  vest  in  the  National  Textile  Corporation  under  section  3  of  this  Act,  as 
amended by the aforesaid Act, as if the said section was in force at all material times; 

(d) any transfer of any property, vested in the National Textile Corporation, by virtue of any order 
of  attachment,  seizure  or  sale  in  execution  of  a  decree  of  a  civil  court  or  orders  of  any  tribunal  or 
other authority in respect of lease-hold property vested in the National Textile Corporation which is 
contrary to the provisions of this Act, as amended by the Textile Undertakings (Nationalisation) Laws 
(Amendment  and  Validation)  Act,  2014  (36  of  2014),  shall  be  deemed  to  be  null  and  void  and 
notwithstanding such transfer, continue to vest in the National Textile Corporation under this Act.] 

16 

 
 
 
THE FIRST SCHEDULE 

[See sections 2 (h), 8 and 18] 

Name of the undertaking 

Name of the owner 

Amount       

(in rupees) 
(4) 

10,79,000 

1,39,06,000 

Sl. 
No. 
(1) 
1 

2 

3 

4 

5 

6 

7 

8 

(2) 
Adoni  Cotton  Mills,  Alur  Road,  Adoni 

(Andhra Pradesh) 

Ahmedabad  Jupiter  Spinning,  Weaving 
and  Manufacturing  Mills,  Mill No. 1, 
Ahmedabad 
Road, 
Dadheechi 
(Gujarat) 

Ahmedabad  Jupiter  Spinning,  Weaving 
and  Manufacturing  Mills,  Mill No. 2, 
Parel, Bombay-13 (Maharashtra) 

Ahmedabad New Textile Mills, Outside 
Raipur Gate, Ahmedabad (Gujarat) 

Ajudhia  Textile  Mills,  Azadpur  Delhi-

33 

Alagappa  Textile 

(Cochin)  Mills, 

(3) 
Adoni  Cotton  Mills  Limited,  22,  Bell 
Building, Sir P. M. Road, Bombay-1. 

The  Ahmedabad 

Jupiter  Spinning, 
Weaving and Manufacturing Company 
Limited, Dadheechi Road,  

Ahmedabad. 

2,35,68,000 

The  Ahmedabad  New  Textile  Mills 
Company  Limited,  Outside  Raipur 
Gate, Ahmedabad. 

The Ajudhia Textile Mills Limited,    23-
24, Radha Bazar Street,    Calcutta-1. 
The Alagappa Textiles (Cochin) Limited, 

93,44,000 

8,41,000 

43,62,000 

Alagappanagar (Kerala) 

Alagappanagar (Kerala). 

Anantapur  Cotton  Mills,  Tadapatri 

The  Anantapur  Cotton  Mills  Limited, 

2,97,000 

(Andhra Pradesh) 

Tadapatri (Andhra Pradesh). 

Apollo  Mills,  N.  M.  Joshi  Marg, 
Bombay-11 

Chinchpokli, 
(Maharahtra) 

Apollo Mills Limited, N.M. Joshi  Marg, 
Bombay-II 

Chinchpokli, 
(Maharashtra). 

1,20,37,000 

9 

Arati  Cotton  Mills,  Dassnagar,  Howrah 

Arati  Cotton  Mills  Limited, 29,  Strand 

4,85,000 

(West Bengal) 

Road, Calcutta-1. 

10 

11 

Associate  Industries  (Assam)  (Spinning 
Unit),  Chandrapur,  Distt.  Kamrup 
(Assam) 
Aurangabad 

Aurangabad 

Mills, 

(Maharashtra) 

Associated 

Industries 
Chandrapur, Distt. Kamrup (Assam). 

(Assam), 

The  Aurungabad  Mills  Limited,  16, 
Himgiri  Padam  Tekri,  Pedoor  Road, 
Bombay-26. 

14,14,000 

           1,000 

12 

Azam  Jahi  Mills,  Warangal  (Andhra 

The  Azam  Jahi  Mills  Limited, 159, 

92,95,000 

Pradesh) 

Gunfoundry Road, Hyderabad. 

13 

Balarama  Varma 

Textile  Mills, 

Balarama 

Varma 

Textiles, 

34,00,000 

14 

15 

16 

Shencottah (Tamil Nadu) 
Bangasri  Cotton  Mills, 

Sodepur 

(West Bengal) 

Bengal  Fine  Spinning  and  Weaving 
Mills,  Mill No. 1,  Konnagar,  District 
Hooghly (West Bengal) 

Bengal  Fine  Spinning  and  Weaving 
Mills,  Mill No. 2,  Kataganj,  District 
Nadia (West Bengal) 

17 

Bengal 

Luxmi 

Serampore, 
(West Bengal) 

(Cotton  Mills, 
Hooghly 

District 

Limited, Shencottah (Tamil Nadu). 
The Bangasri  Cotton  Mills  Limited, 
Chandrachur Sadan, Sodepur,          24-
Parganas (West Bengal). 

Bengal Fine Spinning and Weaving Mills 
Bipin Bihari  Ganguli 

Limited, 7, 
Street, Calcutta. 

 4,85,000 

15,16,000 

11,96,000 

Bengal  Luxmi  Cotton  Mills  Limited, 7, 

22,00,000 

Chowringhee Road, Calcutta. 

18 

Bengal 

Nagpur 

Cotton  Mills, 

Bengal  Nagpur  Cotton  Mills  Limited, 4, 

69,71,000 

Rajnandgaon (Madhya Pradesh) 

Lyons Range, Calcutta. 

17 

 
 
 
 
 
 
 
(1) 
19 

(2) 
Bengal  Textile  Mills,  Cossimbazar 

Bengal 

(3) 
Textile  Mills 

(West Bengal) 

Mercantile Building, 
Calcutta. 

Lal 

(4) 

  3,48,000 

Limited, 
Bazar, 

20 

Bihar  Co-operative  Weavers‟  Spinning 

Bihar  Co-operative  Weavers‟  Spinning 

13,07,000 

Mills, Mokameh, Patna (Bihar) 

Mills Limited, Mokameh, Patna. 

21 

Bijli  Cotton  Mills,  Mendu  Road, 

The Bijli Cotton Mills (Private) Limited, 

21,49,000 

Hathras (Uttar Pradesh) 
Burhanpur  Tapti  Mills, 

Lalbag, 
Burhanpur  R.  S.  (Nimar)  (Madhya 
Pradesh) 
Combodia 

Ondipudur, 

Mills, 

22 

23 

Coimbatore-16 (Tamil Nadu) 

24 

Cannanore  Spinning  and  Weaving 

Mills, Cannanore (Kerala) 

25 

Cannanore  Spinning  and  Weaving 

Mills, Mahe (Pondicherry) 

26 

Central 

Cotton  Mills,  Howrah 

(West Bengal) 

27 

Chhaganlal  Textile  Mills,  Chalisgaon, 

East Khandesh (Maharashtra) 

28 

Coimbatore 

Murugan 

Mills, 

29 

Mettupalayam Road, Coimbatore-11 
Coimbatore  Spinning  and  Weaving 
Mills, Krishnaswamy Mudaliar Road, 
Coimbatore-1 

Agra (Uttar Pradesh). 

The Burhanpur 

Mills 
Limited, Burhanpur  R.  S.  Nimar 
(Madhya Pradesh). 

Tapti 

The 

Combodia  Mills 

Ondipudur,  Coimbatore-16 
Nadu) 

Limited, 
(Tamil 

The  Cannanore  Spinning  and  Weaving 
Mills Limited, Cannanore (Kerala). 

Central 

Mills 
Cotton 
Limited, 9, Brabourne  Road,  Calcutta-
1. 

The  Chhaganlal  Textile  Mills  (Private) 
(Madhya 

Limited,  Chowk, Bhopal 
Pradesh). 

The Coimbatore Murugan Mills Limited, 
Mettupalayam Road, Coimbatore-11. 
The  Coimbatore  Spinning  and  Weaving 
Company  Limited,  Krishnaswamy 
Mudaliar Road, Coimbatore-1. 

86,80,000 

64,40,000 

47,08,000 

61,24,000 

44,10,000 

5,42,000 

18,50,000 

47,03,000 

30 

Dayalbagh  Spinning  and  Weaving 

Sir  Sahabji  Maharaj  Mills  Limited, 

5,74,000 

Mills, Amritsar (Punjab) 

Dayalbagh, Agra (Uttar Pradesh) 

31 

Digvijay  Spinning  and  Weaving  Mills, 
Parel, Bombay-33 (Maha-

Lalbagh, 
rashtra) 

32 

Edward Mills, Beawar (Rajasthan) 

The  Digvijay  Spinning  and  Weaving 
Lalbagh, 

Limited, 

Company 
Parel, Bombay-33 

The 

Edward  Mills 
Limited, Beawar (Rajasthan). 

Company 

33 

34 

Edward  Textile  Mills,  Ferguson  Road, 
Lower Parel, Bombay (Maharashtra) 

Edward  Textile  Mills  Limited,  Indu 
Road, Ballard 

House, 
Dougall 
Estate, Bombay (Maharashtra). 

Fine 

Knitting 
Chamundamata, 
Ahmedabad (Gujarat) 

Mills, 
Asarva 

near 
Road, 

The  Fine  Knitting  Company  Limited, 
Chamundamata, 

Asarva, 
Ahmedabad-16 (Gujarat). 

near 

75,65,000 

6,79,000 

66,28,000 

10,17,000 

35 

Gaya  Cotton  and  Jute  Mills,  Gaya 

Gaya  Cotton  and  Jute  Mills  Limited, 

10,49,000 

(Bihar) 

36 

Himabhai Manufacturing Mills, Outside 
Saraspur Gate, Ahmedabad (Gujarat) 

37 

Hira  Mills, 1/10, Hira  Mill  Marg  (Agar 

Road), Ujjain (Madhya Pradesh) 

38 

India  United  Mills,  Mill No.1, 

Ambedkar Marg, Bombay-12 

39 

India United Mills, Mill No. 2, Bhogale 

Marg, Bombay-33 

Gaya (Bihar). 

The Himabhai  Manufacturing  Company 
Limited,  Opp.  Chartoda  Kabrastan, 
Saraspur, Ahmedabad-18 (Gujarat). 
The Hira  Mills  Limited, 1/10,  Hira  Mill 
Marg  (Agar  Road),  Ujjain  (Madhya 
Pradesh). 

The  India  United  Mills  Limited,  Indu 
House,  Narottam  Morarjee  Marg 
(Dougall 
Ballard 
Road), 
Estate, Bombay-400001. 

54,77,000 

12,39,000 

18 

 
 
  
 
 
 
 
 
(1) 

40 

(2) 

(3) 

(4) 

India United Mills, Mill No. 3, Bhogale 

Marg, Bombay-33 

41 

India  United  Mills,  Mill No. 4,  T.  B. 

Kadam Marg, Bombay-33 

42 

India  United  Mills,  Mill No. 5, 

Chinmchpokli Lane, Bombay-27 

The  India  United  Mills  Limited,  Indu 
House,  Narrottam  Morarjee  Marg, 
(Dougall 
Ballard 
Road), 
Estate, Bombay-400001. 

1,000 

43 

India  United  Mills,  Dye  Works, 

Sawarkar Marg, Bombay-28 

44 

Indore Malwa United Mills, Indore 

The 

Indore  Malwa  United  Mills 
Street, 

Limited, 139,  Meadows 
Fort, Bombay. 

45 

Jayashankar  Mills  Barsi,  Barsi,  District 

Sholapur (Maharashtra) 

46 

Jehangir  Vakil  Mills,  Outside  Delhi 

Gate, Ahmedabad (Gujarat) 

47 

Jyoti  Weaving  Factory, 69,  S.  K.  Dev 

Road, Calcutta-48, West Bengal 

48 

Kaleeswarar  Mills, 

„A‟ 

Unit, 

Coimbatore (Tamil Nadu) 

The  Jayashankar  Mills  Barsi  Limited, 
Sholapur 

District 

Barsi, 
139, 
(Maharashtra). 

The  Jehangir  Vakil  Mills  Company 
Limited,  Outside  Delhi  Gate, 
Ahmedabad (Gujarat). 

Jyoti Weaving Factory (Private) Limited-
69,  S.  K.  Dev  Road,  Patipukur, 
Calcutta, 48 (West Bengal). 

The  Kaleeswarar  Mills 
Coimbatore (Tamil Nadu) 

Limited, 

49 

Kaleeswarar  Mills, 

Unit, 
„B‟ 
(District  Ramnad), 

Kalaynarkoil 
(Tamil Nadu) 

94,25,000 

31,04,000 

98,89,000 

1,000 

32,08,000 

15,97,000 

50 

Kalyanmal  Mills, 15,  Silnath  Camp, 

Kalyanmal  Mills  Limited, 15,  Silnath 

90,64,000 

Indore (Madhya Pradesh) 

Camp, Indore (Madhya Pradesh). 

51 

Kanoria 

Industries 

(Cotton  Mills 

Section), Konnagar (West Bengal) 
Kerala  Lakshmi  Mills,  Trichur  (Kerala 

52 

Kanoria 

Industries 
Netaji Subhas Road, Calcutta-1. 

Limited, 59, 

7,88,000 

Kerala  Lakshmi  Mills  Limited,  Pullazhi, 

25,71,000 

State) 

Trichur-4, Kerala State. 

53 

Keshav Mills, Petlad (Gujarat) 

Keshav  Mills  Company  Limited,  Petlad 

56,28,000 

54 

Kharar  Textile  Mills,  Kharar,  near 

Chandigarh 

55 

Kishnaveni  Textile  Mills,  Trichy  Road, 
Singanallur  Post,  Coimbatore  (Tamil 
Nadu) 

56 

Laxmi  Narayan  Cotton  Mills,  Rishra 

(West Bengal) 

57 

Lord Krishna Textile  Mills,  Saharanpur 

(Uttar Pradesh) 

(Gujarat). 

The  Panipat  Woollen  and  General  Mills 
near 

Company  Limited,  Kharar, 
Chandigarh. 

Kishnaveni  Textiles  Limited,  Trichy 
Road, Singanallur Post,    Coimbatore-
5. 
Laxmi 

Cotton  Mills 
Limited, 4B, Garstin Place, Calcutta-1. 
Lord  Krishna  Sugar  Mills  Limited, 
Chand Hotel, Chandni Chowk, Delhi. 

Narayan 

12,89,000 

25,50,000 

18,77,000 

69,92,000 

58  Mahalakshmi Mills, Beawar (Rajasthan)  The  Mahalakshmi  Mills  Company 

3,68,000 

Limited Beawar (Rajasthan). 

59  Mahalaxmi  Mills,  Vartej  Road, 

The  Mahalaxmi  Mills  Limited,  Vartej 

83,61,000 

Bhavnagar (Gujarat) 

Road, Bhavnagar (Gujarat). 

19 

 
 
 
 
 
 
 
 
  
 
 
 
(1) 
60  Mahboob Shahi 

(2) 

Kulbarga  Mills, 

Gulbarga (Karnataka) 

Mahboob Shahi 
Company 
(Karnataka). 

(3) 

Kulbarga 

Limited, 

Mills 
Gulbarga 

(4) 
1,34,84,000 

61  Mahindra 

Mills, 

Cossimbazar 

Mahindra  Mills  Limited, B.  K.  Paul 

7,71,000 

(West Bengal) 

Avenue, Calcutta. 

62  Minerva 

Mills, 

Malleswaram,  

Minerva 

Mills 

Bangalore-3 (Karnataka) 

Temple Bar Building, 70, 
Street, Fort, Bombay-1 

Limited, 
Forbes 

75,41,000 

63  Model  Mills  Nagpur,  Umrer  Road, 

Nagpur (Maharashtra) 

The  Model  Mills  Nagpur  Limited,  Ilace 
Phirozshah  Mehta 

Sir 

House, 
Road, Bombay-1. 

1,000 

64  Muir  Mills,  Civil  Lines,  Kanpur  (Uttar 

Muir  Mills  Company  Limited,  Civil 

1,36,60,000 

Pradesh) 

65  Mysore  Spinning  and  Manufacturing 
Mills,  Magadi  Road,  Bangalore 
(Karnataka)  

66 

Natraj  Spinning  and  Weaving  Mills 
Nirmal,  Adilabad  District  (Andhra 
Pradesh) 

Lines, Kanpur (Uttar Pradesh). 

The Mysore Spinning and Manufacturing 
Company  Limited, 70,  Forbes  Street, 
Fort, Bombay. 

Natraj  Spinning  and  Weaving  Mills 
Limited, 37,  Lal  Bahadur  Stadium, 
Hyderabad-1. 

84,97,000 

17,26,000 

68 

69 

70 

71 

67 

Netha 

Co-operative 

Spinning 
Elechiguda, 

Mills, 608, 
Secunderabad-3 (Andhra Pradesh) 
New Bhopal  Textile  Mills,  Chandbar, 
(Madhya 
Huzur, Bhopal 

Tehsil 
Pradesh) 

New  Kaiser-i-Hind  Spinning 

and 
Weaving  Mills,  Gorupdeo  Road, 
Chinchpokli, Bombay-33          
(Maharashtra) 

New  Maneckchock  Spinning 

and 
Weaving  Mills,  Opp.  Idgah  Gate, 
Ahmedabad-16 (Gujarat) 

New  Pratap  Spinning,  Weaving  and 
Manufacturing  Mills,  Dhulia,  West 
Khandesh 

72 

New  Victoria  Mills, 14/1,  Civil  Lines, 

Kanpur (Uttar Pradesh) 

73 

Om Parasakthi Mills, Kishnarayapuram, 
Ganapathy P.O., Coimbatore-6 (Tamil 
Nadu) 

The  Netha  Co-operative  Spinning  Mills 

28,42,000 

Limited, Secunderabad-3. 

The  New Bhopal  Textile  Limited, 

7,35,000 

Chandbar, Tehsil Huzur, Bhopal. 

New  Kaiser-i-Hind 

and 
Weaving  Company  Limited,  Ashoka 
Apartment, Altamount Road, Bombay. 

Spinning 

The  New  Maneckchock  Spinning  and 
Weaving  Company  Limited,  Opp. 
Idgah Gate, Ahmedabad-16. 

New  Pratap  Spinning  and  Weaving  and 
Manufacturing  Company  Limited, 
Dhulia, West Khandesh. 

The  New  Victoria  Mills  Company 
Limited, 14/1,  Civil  Lines,  Kanpur 
(Uttar Pradesh). 

Om 

Parasakthi  Mills 

Limited, 
Kishnarayapuram,  Ganapathy  P.O., 
Coimbatore-6. 

48,70,000 

54,37,000 

70,45,000 

47,38,000 

27,99,000 

74 

Orissa Cotton Mills, Bhagatpur, Cuttack  Orissa Cotton Mills Limited, 41, Ironside 

1,000 

Road, Calcutta-1. 

75 

Osmanshahi  Mills,  Mill  Road,  Nanded 

Osmanshahi  Mills  Limited,  Mill  Road, 

1,06,71,000 

(Maharashtra) 

76 

Panipat  Woollen  Mills,  Kharar,  near 

Chandigarh 

Nanded (Maharashtra). 

The  Panipat  Woollen  and  General  Mills 
near 

Company  Limited,  Kharar, 
Chandigarh. 

6,40,000 

77 

78 

79 

Pankaja Mills, Coimbatore 

Pankaja Mills Limited, Coimbatore. 

26,10,000 

Parvathi Mills, Quilon (Kerala) 

Parvathi Mills Limited , Quilon (Kerala). 

26,05,000 

Pioneer  Spinners,  Pioneernagar,  (Tamil 

Pioneer  Spinners 

(Private)  Limited, 

26,44,000 

Nadu) 

80 

Prabha Mills, Viramgam (Gujarat) 

Prabha 

Pioneernagar (Tamil Nadu). 
Mills 

Limited, Highway 
Rose Building, 92,  Ambawadi  Dixit 
Road, Vile Parle, Bombay-57. 

9,10,000 

20 

 
 
 
 
(1) 
81 

82 

83 

84 

(2) 
R. B. Bansilal  Abirchand  Spinning  and 
Mills, 

Hinghanghat         

Weaving 
(Maharashtra) 

Rajkot  Spinning  and  Weaving  Mills, 
Cross-Road, 

Karansinhji 
Post Box No. 2, Rajkot (Gujarat) 
Rajnagar  Spinning,  Weaving 

and 
Manufacturing  Mills,  Unit No.1, 
Ahmedabad (Gujarat) 

Rajnagar  Spinning,  Weaving 

and 
Manufacturing  Mills,  Unit  No. 2, 
Ahmedabad (Gujarat) 

(3) 
R.  B. Bansilal  Abirchand  Spinning  and 
Weaving  Mills  Company  (Private) 
Limited, Hinganghat (Maharashtra). 
The Rajkot Spinning and Weaving Mills 
Limited,  Karansinhji  Cross  Road, 
Post Box No. 2, Rajkot. 

(4) 

57,50,000 

31,79,000 

The  Rajnagar  Spinning,  Weaving  and 
Manufacturing  Company  Limited, 
Outside Prem Gate, Ahmedabad. 

58,81,000 

85 

Rampooria  Cotton  Mills,  Serampore 

Rampooria  Cotton  Mills  Limited, 8-B, 

47,67,000 

(West Bengal) 

86 

R.S.R.  Gopaldas  Mohta  Spinning  and 
Weaving Mills, Akola (Maharashtra) 

87 

Savatram  Ramprasad  Mills,  Akola 

(Maharashtra) 

Lall Bazar Street, Calcutta-1. 

The  R.S.R.  Gopaldas  Mohta  Spinning 
and  Weaving  Mills  (Private)  Limited, 
Akola, District Akola (Maharashtra). 
Savatram  Ramprasad  Mills  Company 

Limited, Akola (Maharashtra). 

1,01,88,000 

59,34,000 

88 

Seksaria  Cotton  Mills,  Delisle  Road, 

Seksaria  Cotton  Mills  Limited,  Delisle 

49,67,000 

Parel, Bombay 

Road, Parel, Bombay. 

89 

Shree Bijay  Cotton  Mills,  Bijainagar 

Shree Bijay  Cotton  Mills  Limited, 

87,000 

(Rajasthan) 

Bijainagar (Rajasthan). 

90 

Shree  Mahalaxmi  Mills, 

Palta 

M/s. Gajraj Pannalal Limited, Calcutta. 

27,22,000 

(West Bengal) 

91 

Shri  Vikram  Cotton  Mills,  Talkatora, 

Shri  Vikram  Cotton  Mills  Limited, 

12,46,000 

92 

93 

94 

Lucknow (Uttar Pradesh) 
Sodepur  Cotton  Mills, 

Lucknow (Uttar Pradesh). 

Sodepur 

Sodepur  Cotton  Mills  Limited,  Sodepur 

1,000 

(West Bengal) 
Somasundaram 

Somasundaram 
Coimbatore 

(West Bengal). 

Mills, 
Mill 

10/64, 
Road, 

The  Somasundaram  Mills 

(Private) 
Limited, 10/ 64,  Somasundaram  Mill 
Road, Coimbatore (Tamil Nadu). 

Sree  Yallamma  Cotton,  Woollen  and 
Silk  Mills,  Yallamnagar  (Tolahunaso 
Railway Station) 

Shree  Yallamma  Cotton,  Woollen  and 
Limited, 

Silk  Mills 
Davangere City (Karnataka State). 

Company 

38,25,000 

10,18,000 

95 

Sri Bharathi  Mills,  Mudaliarpet  P.O., 

Sri Bharathi  Mills  Limited,  Mudaliarpet 

15,22,000 

Pondicherry 

P.O., Pondicherry. 

96 

Sri  Kothandram 

Spinning  Mills, 

Sri Kothandram Spinning Mills (Private) 

97,000 

Madurai 

Limited, Madurai. 

97 

Sri  Ranga  Vilas  Ginning,  Spinning  and 
Weaving  Mills,  Avanashi  Road, 
Peelamedu  P.O.,  Coimbatore  (Tamil 
Nadu) 

Sri  Ranga  Vilas  Ginning,  Spinning  and 
Weaving  Mills  Limited,  Avanashi 
Road,  Peelamedu  P.O.,  Post Box 
No. 828, Coimbatore. 

35,14,000 

98 

Sri Sarada Mills, Podanur (Tamil Nadu) 

Sri  Sarada  Mills  Limited,  Podanur 

50,31,000 

(Tamil Nadu). 

99 

Suraj  Textile  Mills,  Malout  Mandi, 

Suraj  Textile  Mills  Limited,  Malout 

2,37,000 

Punjab 

Mandi, Punjab. 

100 

Swadeshi  Cotton  and  flour  Mills, 7, 
Indore-3 (Madhya 

Silnath  Camp, 
Pradesh) 

The  Swadeshi  Cotton  and  flour  Mills 

1,000 

Limited, 7, 
Indore-3 (Madhya Pradesh). 

Shilnath 

Camp,          

101 

Tirupathi  Cotton  Mills,  Ranigunta 

Tirupathi  Cotton  Mills  Limited, 8, Boag 

23,99,000 

(Andhra Pradesh). 

Road, T. Nagar, Madras-17. 

102  Vidarbha  Mills 

(Berar)  Ellichpur 

Vidarbha  Mills Berar  Limited,  Ellichpur 

73,26,000 

(Maharashtra) 

(Maharashtra). 

103  Vijaymohini Mills, Trivandrum 

The  Vijaymohini  Mills 

Limited, 

32,95,000 

Trivandrum. 

21 

 
 
 
THE SECOND SCHEDULE 

[See sections 21, 22, 23 and 27] 

Order of priorities for the discharge of liabilities in respect of a sick textile undertaking 

PART A 

Post-take-over management period 

Category I.— 

(a) Loans advanced by a bank. 

(b) Loans advanced by an institution other than a bank. 

(c) Any other loan. 

(d) Any credit availed of for purpose of trade or manufacturing operations. 

Category II.— 

(a)  Revenue,  taxes,  cesses,  rates  or  any  other  dues  to  the  Central  Government  or  a  State 

Government. 

(b) Any other dues. 

Category III.— 

PART B 

Pre-take-over management period 

Arrears in relation to provident fund, salaries and wages, and other amounts, due to an employee. 

Category IV.— 

Secured loans. 

Category V.— 

Revenue, taxes, cesses, rates or any other dues to the Central Government, a State Government, a 

local authority or a State Electricity Board. 

Category VI.— 

(a) Any credit availed of for purpose of trade or manufacturing operations. 

(b) Any other dues. 

22 

 
 
 
