1 6

GOVERNMENT  OF  MAHARASHTRA

LAW  AND  JUDICIARY  DEPARTMENT

MAHARASHTRA  ACT No.  XXXVI
OF  1984

THE  SHIVRAJ  FINE  ART  LITHO  WORKS
(ACQUISITION  AND  TRANSFER  OF
UNDERTAKING)  ACT,  1984.

(As  modified  upto  the  30th  August  2012)

*

PRINTED IN INDIA BY THE MANAGER, GOVERNMENT CENTRAL PRESS, MUMBAI
AND PUBLISHED BY THE DIRECTOR, GOVERNMENT PRINTING, STATIONERY AND
PUBLICATIONS, MAHARASHTRA STATE, MUMBAI 400 004.

2012

[Price—Rs. 13 .0 0]

1984: Mah. XXXVI]

1 8

(i)

THE  SHIVRAJ FINE  ART  LITHO  WORKS (ACQUISITION AND
TRANSFER  OF UNDERTAKING) ACT,  1984.

CONTENTS

PREAMBLE.

SECTIONS.

Short  title and  commencement.

1.
2. Definitions.

CHAPTER II

ACQUISITION AND TRANSFER OF THE UNDERTAKING

3. Acquisition and transfer of undertaking and its vesting in State

Government  and its transfer and  vesting in Corporation.

 4. General effect of vesting.
 5.
 6.

Proprietors to be liable  for prior liabilities.
Power of  State Government  to direct  vesting of  undertaking

in  new Government  company.

6A. Taking  over  management  of  undertaking  by  State

Government.

CHAPTER III

PAYMENT OF AMOUNTS

 7.
 8.

Payment of  amount.
Payment  of further  amount.

CHAPTER IV

MANAGEMENT, ETC. OF THE UNDERTAKING

9. Management,  etc. of  undertaking.

10. Duty  of  persons  incharge  of management  of  undertaking  to

deliver all assets,  etc.

11. Duty of persons to account for assets, etc., in their possession.

PROVISIONS RELATING TO THE EMPLOYEES OF THE PROPRIETORS

CHAPTER V

 12. Continuance of  employees.
13.

Provident fund and other  funds.

CHAPTER VI

COMMISSIONER OF PAYMENTS

 14. Appointment of  Commissioner of  Payments.
 15.
16. Certain  powers  of  State  Government  or  Corporation  or  new

Payment  by State  Government to  Commissioner.

Government  company.

17. Claims to be  made to  Commissioner.
 18.
Priority of claims.
19. Examination of  claims.
20. Admission or  rejection of  claims.
21. Disbursement of  money by Commissioner to  claimants.
22. Disbursement of amounts to  proprietors.
23. Undisbursed or unclaimed amount to be deposited with general

revenue  account.

H  791—1

1 9

(ii)

Shivraj Fine Art  Litho Works (Acquisition
and Transfer of Undertaking) Act,  1984.

[1984 : Mah. XXXVI

SECTIONS

CHAPTER VII

MISCELLANEOUS

24. Act to  have overriding  effect.
25. Contracts  to  cease  to  have  effect  unless  ratified  by  State
Government or  Corporation  or  new Government  company.

Penalties.

Protection of  action taken in good faith.

26.
27. Delegation  of  powers.
28.
29. Offences by  companies.
30.
31.
32. Repeal of Mah. Ord. V of 1984 and saving.

Power  to make  rules.
Power  to remove  difficulties.

SCHEDULE

MAHARASHTRA ACT No. XXXVI OF 1984. 1
1

[THE SHIVRAJ FINE ART LITHO WORKS (ACQUISITION AND TRANSFER OF
UNDERTAKING) ACT, 1984.]

[This  Act received  the assent  of the President on  21st December 1984;
the  assent was first published in the  “ Maharashtra  Government
Gazette ”, Part  IV, Extra-ordinary, on the 21st  December1984.]

Amended by Mah. 33 of 1994 (7-5-1994) †

An Act to provide for the acquisition and transfer of the undertaking of
the Shivraj Fine Art Litho Works, Nagpur, with a view to securing the
proper management of such undertaking so as to subserve the interests
of the general public and the employees of the undertaking by ensuring
the  continued  manufacture,  production  and  distribution  of  printed
lithographic material  which are essential to the needs  of the  economy
of  the  State  and  country  and  for  matters  connected  therewith  or
incidental  thereto.

WHEREAS a printing press styled as Shivraj Fine Art Litho Works,
Nagpur, was run by the members of a family as partners of a partnership
firm registered in the State of Maharashtra under the Indian Partnership
Act, 1932 ;

IX of
1932.

AND  WHEREAS  due  to  the disputes  between  the  members  cf  the
family regarding dissolution of the partnership firm, which had been a
partnership at will, there ensued litigation amongst the partners and a
civil suit, being Chil Suit No. 9 of 1974 was filed in the Court of the Civil
Judge, Senior Division, Nagpur, wherein receivers were appointed from
time to time to manage the Shivraj Fine Art Litho Works and that suit
is pending in that Court ;

AND WHEREAS the Shivraj Fine Art Litho Works had been engaged
in the  manufacture, production  and distribution  of  printed  engraved
lithographic material,  being articles  mentioned in  the First  Schedule
to  the Industries (Development and Regulation) Act, 1951 ;

AND  WHEREAS  the undertaking,  namely,  Shivraj  Fine  Art  Litho
Works, was closed  down from  the 17th May 1979, throwing about  460
employees out  of employment  ;

LXV
of
1951.

AND  WHEREAS  by  Government  of  India,  Ministry  of  Industry
(Department  of Industrial  Development) Order,  No. SO  634(E)/18AA/
IDRA/80,  dated  the  23rd  August  1980,  the  management  of  the
undertaking  was  taken  over  by  the  Central  Government  under  the
provisions of  the Industries  (Development and  Regulation) Act,  1951,
and the  Development Corporation  of Vidarbha  Limited,  Nagpur,  was
appointed as the authorised person to manage the undertaking ;

LXV
of
1951.

AND WHEREAS  in Writ Petition No. 2741 of  1980 filed  by some  of
the partners  challenging the  order of  the Government of India  taking
over the management of the undertaking  as aforesaid, the High Court
of Bombay,  Nagpur  Bench,  quashed  the  said  order  by  its  judgement
rendered on the 28th April 1982 ;

1 For  Statement  of  Objects  and  Reasons, see  Maharashtra  Government  Gazette, Part  V,

Extraordinary,  dated  13th  November  1984,  pages  374-375.

† This  indicates  the  date  of  commencement  of  the  Act.

H  791—2

2

AND WHEREAS the Development Corporation of Vidarbha Limited,
Nagpur, filed an appeal in the Supreme Court against the judgemeni of
the High Court and the Supreme Court had by its order, dated the 26th
May 1982,  stayed the  operation of the judgement of the High Court ;

AND WHEREAS the period for such management of the undertaking
had  been  extended  from  time  to  time  and  was  to  expire  on  the
22nd August 1984 ;

AND WHEREAS for the purpose of securing the optimum utilization
of the available facilities for the manufacture, production and distribution
of  printed  engraved  lithographic  material  by  the  undertaking,  its
continuous  proper management and investment of a large amount was
necessary  ;

AND WHEREAS it was expedient to acquire the said undertaking to
ensure that the interests of the general public and the employees of the
said undertaking were served by the continuance by the undertaking of
the manufacture,  production and  distribution of the aforesaid articles
which  are essential  to the  needs of  the economy  of the  State and  the
country  and to  provide for  matters connected  therewith  or  incidental
thereto  ;

AND WHEREAS such acquisition was for giving effect  to the policy
of State towards securing the principle specified in clause (b) of Article
39 of the Constitution of India ;

AND WHEREAS  both Houses  of the  State  Legislature  were not  in

session  ;

AND  WHEREAS  the  Governor  of  Maharashtra  was  satisfied  that
circumstances  existed  which  rendered  it  necessary  for  him  to  take
immediate  action  to  make  a  law  for  the  purposes  aforesaid  ;  and,
therefore, promulgated the Shivraj  Fine Art  Litho Works  (Acquisition
and Transfer of Undertaking) Ordinance, 1984 on the 11th August 1984 ;

AND WHEREAS it is expedient to replace the said Ordinance by an
Act of the State Legislature ; It is hereby enacted in the Thirty-fifth Year
of the Republic of India as follows :—

1. (1) This  Act  may  be  called  the  Shivraj  Fine  Art  Litho  Works

(Acquisition and Transfer of Undertaking) Act, 1984.

(2) It shall be deemed to have come into force on the 11th day of August

Mah
Ord.  V
of
1984.

1984.

Short title
and
commence-
ment.

Definitions.

2.   In  this Act unless the  context otherwise requires,—

(a)  “ appointed  day  ”    means  the  day  on  which  this  Act  comes  into

force ;

(b) “Commissioner  ”  means  the  Commissioner  of Payments

appointed  under  section  14  ;

(c) “ Corporation ” means the Development Corporation of Vidarbha
Limited,  Nagpur,  a  Government  Company  registered  under  the
Companies  Act,  1956  ;

I of
1956.

3

I of
1956.

IX of
1932.

(d)  “ new  Government  company  ”  means  a  Government  company
(including  a  subsidiary  Government  company)  formed  and  registered
under  the  Companies  Act,  1956  in  which  the  undertaking  is  directed
to  vest  under  sub-section  (1)  of  section  6  ;

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

(f)  “  proprietors  ”  means  the  partnership  firm,  namely,  the  Shivraj
Fine  Art  Litho  Works,  Nagpur,  registered  under  the  Indian
Partnership  Act,  1932,  with  head office  at  Subhash  Road,  Nagpur,  as
it  existed immediately  before  its dissolution  on  the  9th January  1974
and  includes  the  receiver  or  receivers  appointed  in  Civil  Suit  No.  9
of  1974  in  the  Court  of  the  Civil  Judge,  Senior  Division,  Nagpur  ;

(g) “  Schedule  ”  means  the  Schedule  appended  to  this  Act  ;

(h) “ specified date ” , in relation to any provision of this Act, means
such  date  as  the  State  Government  may,  by  notification  in  the
Official Gazette, specify for the purposes of that provision, and different
dates  may  be  specified  for  different  provisions  of  this  Act  ;

(i)  “  undertaking  ”  means  the  industrial  undertaking  known  as
“Shivraj Fine Art Litho Works, Nagpur ”, belonging to the proprietors.

CHAPTER  II

ACQUISITION AND TRANSFER OF THE UNDERTAKING

3. (1)  On  the  appointed  day,  the  undertaking  and  the  right,  title  and
interest  of  the  proprietors  in  relation  to  their  undertaking,  shall,  by
virtue of this Act, stand transferred to, and vest absolutely in, the State
Government.

(2) 1[Subject  to  the  other  provisions  of  this  Act,  the  undertaking]
which  stands  vested  in  the  State  Government  by  virtue  of  sub-section
(1)  shall,  immediately  after  it  has  so  vested,  stand  transferred  to,  and
vested  in,  the  Corporation.

4. (1)  The  undertaking  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, 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
proprietors  whether  within  or  outside  India,  and  all  books  of  account,
registers  and  all  other  documents  of  whatever  nature  relating  thereto.

1 These  words  were  substituted  for  the  words  “  The  undertaking  ”    by  Mah.  33  of  1994,  s.2.

H  791—2a

Acquisition
and  transfer
of
undertaking
and  its
vesting in
State
Government
and  its
transfer  and
vesting in
Corporation.

General
effect of
vesting.

4

(2)  All  properties  as  aforesaid  which  have  vested  in  the  State
Government under section 3 shall, by force of such vesting, be freed and
discharged  from  any  trust,  obligation,  mortgage,  charge,  lien  and  all
other  encumbrances  affecting  them,  and  any  attachment,  injunction,
decree  or  order  of  any  court,  tribunal  or  other  authority  restricting  the
use  of  such  properties  in  any  manner  or  appointing  any  receiver  in
respect  of  the  whole  or  any  part  of  such  properties  shall  be  deemed  to
have  been  withdrawn.

(3)  Every  mortgagee  of  any  property  which  has  vested  under  this  Act
in  the  State  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.

(4) For the removal of doubts, it is hereby declared that the mortgagee
of any property referred to in sub-section (3) 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  interest,
payment  of  the  mortgage  money  or  other  dues,  in  whole  or  in  part,  out
of the amount specified in section 7 and also out of the amounts referred
to  in  section  8,  but  no  such  mortgage,  charge,  lien  or  other  interest
shall  be  enforceable  against  any  such  property  which  has  vested  in  the
State  Government  and  the  Corporation.

(5)  Any  licence  or  other  instrument  granted  to  the  proprietors  in
relation  to  the  undertaking  which  has  vested  in  the  State  Government
under  section  3,  at  any  time  before  the  appointed  day  and  in  force
immediately before that day, shall continue to be in force on and after such
day in accordance with its tenor in relation to, and for the purposes of, such
undertaking  and,  on  and  from  the  date  of  vesting  of such  undertaking
under section 3 in the Corporation, or under section 6 in a new Government
company,  the  Corporation,  or  new  Government  company,  as  the  case  may
be,  shall  be  deemed  to  be  substituted  in  such  licence  or  other  instrument
as if such licence or other instrument had been granted to the Corporation,
or  new  Government  company,  and  that  the  Corporation,  or  new
Government  company,  shall  hold  it  for  the  remainder  of  the  period  for
which  the  proprietors  would  have  held  it  under  the  terms  thereof.

(6)  If,  on  the  appointed  day,  any  suit,  appeal  or  other  proceeding  of
whatever  nature  in  relation  to  any  property  which  has  vested  in  the
Corporation  under  section  3,  instituted  or  preferred  by  or  against  the
proprietors  is  pending,  the  same  shall  not  abate,  be  discontinued  or  be,
in  any  way,  prejudicially  affected  by  reason  of  the  transfer  of  the
undertaking  or  of  anything  contained  in  this  Act  but  the  suit,  appeal  or
other  proceeding  may  be  continued,  prosecuted  or  enforced  by  or  against
the  Corporation,  or  new  Government  company,  as  the  case  may  be.

Explanation.—For  the  purposes  of  this  section  the  expression  “  any
suit,  appeal  or  other  proceeding  of  whatever  nature ”  shall  not  include
Civil  Suit  No.  9  of  1974  pending  in  the  Court  of  the  Civil  Judge,  Senior
Division,  Nagpur.

5.  (1)  Every  liability  other  than  the  liability  specified  in  sub-section
(2), of the proprietors in respect of any period prior to the appointed day,
shall  be  the  liability  of  the  proprietors  and  shall  be  enforceable  against
them  and  not  against  the  State  Government  or  against  the  Corporation
or  where  the  undertaking  is  directed  under  section  6  to  vest  in  a  new
Government  company,  against  that  new  Government  company.

(2) Any  liability  in  respect  of  materials  supplied  to  the  undertaking
or  of  loans  advanced  to  it  or  of  any  other  nature,  arising  out  of  the
transactions  entered  into  by  the  Corporation  after  the  management  of
the  undertaking  had  been  taken  over  by  the  Central  Government  shall,
on  and  from  the  appointed  day,  be  the  liability  of  the  Corporation,  and
shall, if it has remained undischarged on the appointed day, be discharged
by  the  Corporation.

Proprietors
to  be  liable
for prior
liabilities.

5

(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 the  proprietors in respect of  any period
prior  to  the  appointed  day,  shall  be  enforceable  against  the  State
Government or the Corporation, or, where the undertaking is directed
under  section  6  to  vest  in  any  other  new  Government  company,
against  such  new  Government  company  ;

(b)  no  award,  decree  or  order  of  any  Court,  tribunal  or  other
authority  in  relation  to  the  undertaking  passed  on  or  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  State  Government  or  the  Corporation  or,  where  the
undertaking  is  directed  under  section  6  to  vest  in  any  other  new
Government  company,  against  such  new  Government  company  ;

  (c) no  liability  incurred  by  the  proprietors  before  the  appointed
day,  for  the  contravention  of  any  provision  of  any  law  for  the  time
being  in  force,  shall  be  enforceable  against  the  State  Government  or
the  Corporation,  or,  where  the  undertaking  is  directed  under  section
6  to  vest  in  any  other  new  Government  company,  against  such  new
Government  company  ;

 (d) notwithstanding anything contained in sub-section (1) of section
12  or  any  other  provisions  of  this  Act  or  any  other  law  for  the  time
being  in  force  or  any  contract,  agreement,  settlement,  award,  or
decree  or  order  of  any  court,  tribunal  or  other  authority,  no  liability
towards  claims  of  whatever  nature  of  any  employee  against  the
proprietors  in  respect  of  his  employment  in  the  undertaking  for  the
period prior to the date of taking over the undertaking by the Central
Government  for  management  under  the  provisions  of  the  Industries
(Development and  Regulation) Act, 1951,  shall be  enforceable against
the  State  Government  or  the  Corporation.
6. (1) Notwithstanding anything  contained in  sections 3  and 4,  where
the  undertaking  vests,  under  sub-section  (2)  of  section  3,  in  the
Corporation,  the  State  Government  may,  subject  to  such  terms  and
conditions  as  it  may  think  fit  to  impose,  direct,  by  notification  in  the
Official  Gazette, that  the  undertaking  and  the  right,  title  and  interest
of the proprietors in relation to the undertaking which had vested in the
State  Government  and  which  on  its  transfer  vests  in  the  Corporation
under  section  3,  shall,  instead  of  continuing  to  vest  in  the  Corporation,
vest  in  a  new  Government  company  with  effect  from  the  date  specified
in  the  notification.

(2)  Where  the  right,  title  and  interest  of  the  proprietors  in  relation
to  their  undertaking  vest,  under  sub-section  (1),  in  a  new  Government
company,  such  Government  company  shall,  on  and  from  the  date  of
such  vesting,  be  deemed  to  have  become  the  owner  in  relation  to  such
undertaking,  and  all  the  rights  and  liabilities  of  the  State  Government
and  the  Corporation  in  relation  to  the  undertaking,  shall  on  and  from
the  date  of  such  vesting,  be  deemed  to  have  become  the  rights  and
liabilities  of  such  Government  company.

1[6A.   (1) Nothing in sub-section (2) of section 3 or section 4 or in any
other  provision  of  this  Act  shall  be  deemed  to  prevent  the  State
Government  from  taking  over  the  management  of  the  undertaking,  the
right, title and interest in which vests absolutely in the State Government
by  virtue  of  the  provisions  of  sub-section  (1)  of  section  3,  or  from
transferring  the  management  again  to  any  Corporation  or  new
Government  company.

1

  Section  6-A  was  inserted  by  Mah.  33  of  1994,  s.  3.

LXV
of
1951.

Power  of
State
Government
to direct
vesting of
undertaking
in  new
Government
company.

Taking  over
management
of
undertaking
by  State
Government.

6

(2) On  and  with  effect  from  such  date  as  the  State  Government  may,
by  notification  in  the Official  Gazette, direct,  the  State  Government
shall  take  over  from  the  Corporation,  the  management  of  the
undertaking  for  management  by  itself  as  the  owner  thereof.

(3) In  particular  and  without  prejudice  to  the  generality  of  the
provisions  of  sub-section  (2)  and  notwithstanding  anything  contained  in
sections  4,  9,  10,  11,  12  and  13,  upon  taking  over  the  management  of
the  undertaking  by  the  State  Government,  the  following  consequences
shall  ensue  in  relation  to  the  undertaking,  that  is  to  say,—

(a) (i) the properties and the management shall be deemed to have

been  vested  in  the  State  Government  ;

(ii) the State Government shall be deemed to have been substituted
in  any  licence  or  other  instrument  in  relation  to  the  undertaking  ;
(iii) the  suit,  appeal  or  other  proceeding  may  be  continued,

prosecuted  or  enforced  by  or  against  the  State  Government  ;

(b) for  the  purpose  of  management  of  the  undertaking,  the  State
Government  shall  be  entitled  to  exercise  to  the  exclusion  of  all
persons,  all  such  powers  and  do  all  such  things  in  relation  to  the
undertaking  as  the  owner  thereof  ;

(c) the Corporation in charge of the management of the undertaking
shall  be  bound  to  deliver  to  the  State  Government  all  assets,  books
of  accounts,  registers  and  other  documents  in  its  custody  relating  to
the  undertaking  ;

(d) any  person  who  has  in  his  possession  or  under  his  control  any
assets, books, documents or other papers relating to the undertaking,
shall  be  liable  to  account  for  the  said  assets,  books,  documents  and
other  papers  to  the  State  Government,  and  shall  deliver  them  to  the
State  Government  or  to  such  person  or  persons  as  the  State
Government  may  specify  in  this  behalf  ;  and  the  State  Government
may  take,  or  cause  to  be  taken,  all  necessary  steps  for  securing
possession  of  the  undertaking  ;

(e) all  the  employees  of  the  Corporation  in  relation  to  the
undertaking shall form a separate unit for the purposes of its accounts
and  establishment,  with  the  same  rights  and  privileges  as  to  salary,
gratuity and other conditions of service as would have been admissible
to  them  had  the  management  of  the  Undertaking  not  been  taken
over by  the State Government  and shall continue  to be so  unless and
until their employment is duly terminated or until their remuneration
and  other  conditions  of  service  are  duly  altered  by  the  State
Government  and  no  officer  or  employee  shall  be  entitled  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 ;

(f) the  monies,  if  any,  standing  to  the  credit  of  provident  fund,
superannuation  fund,  welfare  fund  or  other  fund  in  relation  to  the
employees  of  the  undertaking  shall  be  transferred  to,  and  vested  in,
the State Government and shall be dealt with in such manner as may
be  prescribed.]

CHAPTER  III

PAYMENT OF AMOUNTS

Payment  of
amount.

7.  For  the  transfer  to,  and  vesting  in,  the  State  Government,  under
section  3,  of  the  undertaking  and  the  right,  title  and  interest  of  the
proprietors  in  relation  to  their  undertaking,  there  shall  be  paid  by  the
State  Government  to  the  proprietors,  in  cash,  and  in  the  manner
specified  in  Chapter  VI,  an  amount of  rupees  fourteen  lakhs  and  twelve
thousand.

Payment  of
further
amount.

7

LXV of
1951.

8. (1)  For  the  deprivation  of  the  proprietors  of  the  management  of
their under taking (which has remained closed with effect from the 17th
May  1979  to  the  22nd  August  1980)  during  the  period  commencing  on
the  23rd  August  1980  being  the  date  on  which  the  undertaking  was
taken over in pursuance of the Orders made by the Central Government
under  the  provisions  of  the  Industries  (Development  and  Regulation)
Act,  1951  and  ending  on  the  appointed  day,  there  shall  be  paid  by  the
State Government to the proprietors in cash and in the manner specified
in  Chapter  VI,  an  amount  of  rupees  five  thousand  per  annum.

(2) The  amounts  specified  in  section  7  shall  carry  simple  interest  at
the  rate  of  four  per  cent  per  annum  for  the  period  commencing  on  the
appointed day and ending on the date on which payment of such amount
is  made  by  the  State  Government  to  the  Commissioner.

(3) The amount specified in sub-section (1) and the amount determined
in accordance with the provisions of sub-section (2) shall be given by the
State Government to the proprietors in addition to the amount specified
in  section  7.

(4) For  the  removal  of  doubts,  it  is  hereby  declared  that  the  liabilities
of the proprietors in relation to their undertaking which has vested in the
State  Government  under  section  3  shall  be  discharged  from  the  amounts
specified  in  section  7,  and  also  from  the  amount  specified  in  sub-section
(1)  and  the  amount  determined  under  sub-section  (2),  in  accordance  with
the  rights  and  interests  of  the  creditors  of  the  proprietors.

CHAPTER IV
MANAGEMENT, ETC. OF THE UNDERTAKING

9.  The  general  superintendence,  direction,  control  and  management
of  the  affairs  and  business  of  the  undertaking,  the  right,  title  and
interest  in  relation  to  which  have  vested  in  the  State  Government
under  sub-section  (1)  of  section  3,  shall—

Management
etc. of
undertaking.

(a) by virtue of the provisions of sub-section (2) of section 3, vest  in the

Corporation ; or

(b) where a direction has been issued by the State Government under sub-

section (1) of section 6, vest in the new Government company,

and  thereupon  the  Corporation  or  such  Government  company,  as  the
case  may  be,  shall  be  entitled  to  exercise,  to  the  exclusion  of  all  other
persons,  all  such  powers  and  do  all  such  things  as  the  proprietors  were
authorised  to  exercise  and  do  in  relation  to  their  undertaking.

10.  (1)  On  the  vesting  of  the  management  of  the  undertaking  in  the
Corporation,  or  a  new  Government  company,  all  persons  in  charge  of
the  management  of  the  undertaking  immediately  before  such  vesting,
shall  be  bound  to  deliver  to  the  Corporation,  or  a  new  Government
company, as the case may be, all assets, books of accounts, registers and
other  documents  in  their  custody  relating  to  the  undertaking.

(2)  The  State  Government  may  issue  such  directions  as  it  may  deem
desirable  in  the  circumstances  of  the  case  to  the  Corporation  or  a  new
Government company and the Corporation or such Government company
may  also,  if  it  is  considered  necessary  so  to  do,  apply  to  the  State
Government  at  any  time  for  instructions  as  to  the  manner  in  which  the
management of the undertaking shall be conducted or in relation to any
other  matter  arising  in  the  course  of  such  management.

Duty  of
persons  in
charge of
management
of
undertaking
to deliver  all
assets,  etc.

11.  (1)  Any  person  who  has,  on  the  appointed  day,  in  his  possession
or  under  his  control,  any  assets,  books,  documents  or  other  papers
relating to the  undertaking, which have vested in the State Government
or in the Corporation, or in a  new Government company under this Act,
shall be liable to account for the said assets, books documents and other

Duty  of
person  to
account for
assets,  etc.,
in their
possession.

8

papers to the State Government, or the Corporation, or a new Government
company, as the case may be, and shall deliver them to the State Government,
or the Corporation or such Government company or to such person or persons
as the State Government or the Corporation or such Government company may
specify in this behalf.

(2) The State Government or the Corporation or the Government company
aforesaid  may  take,  or  cause  to  be  taken,  all  necessary  steps  for  securing
possession of the undertaking which has vested in the State Government or the
Corporation or such Government company under this Act.

(3) The proprietors shall, within such period as the State Government may
allow in this behalf, furnish to that Government a complete inventory of all its
properties and assets, as on the appointed day, pertaining to the undertaking
which has vested in the State Government under sub-section (1) of section 3 and
in the Corporation, by virtue of the provisions of sub-section (2) of that section,
and, for this purpose the State Government or the Corporation shall afford to
the proprietors all  reasonable facilities.

CHAPTER V
PROVISIONS RELATING TO THE EMPLOYEES OF THE PROPRIETORS

Continuance
of  employees.

12. (1) Every person who has been, immediately before the appointed day,

employed in the undertaking shall become,—

(a) on and from the appointed day, an employee of the Corporation ; and

(b) where the undertaking is directed under sub-section (1) of section 6,
to vest in a new Government company, an employee of such Government
company on and from the date of such vesting,

and shall hold office or service under the Corporation or such Government
company, as the case may be, with the same rights and privileges as to
pension, gratuity and other matters as  would have been admissible  to
him if there had been no such vesting and shall continue to do so unless
and until his employment under the Corporation, or as the case may be,
under  such  Government  company,  is  duly  terminated  or  until  his
remuneration and  other conditions  of service  are duly  altered  by  the
Corporation or such Government company, as the case may be.

(2)  Notwithstanding  anything  contained  in  the  Industrial  Disputes  Act,
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 the undertaking, to the Corporation
or such Government company, shall not entitle such officer or other employee
to any compensation under this Act or under any other law for the time being
in force and no such claim shall be entertained by any Court, tribunal or other
authority.

13.

(1)  Where  the  proprietors  have  established  a  provident  fund,
superannuation  fund,  welfare  fund  or  any  other  fund  for  the  benefit  of  the
persons employed in the undertaking, the monies relatable to the officers or
other employees, whose services have become transferred, by or under this Act,
to the Corporation or a new Government company, as the case may be, shall,
out of the monies standing on the appointed day, to the credit of such provident
fund, superannuation fund, welfare fund or other fund, stand transferred to, and
vested in, the Corporation or such Government company, as the case may be.

(2)  The  monies  which  stand  transferred  under  sub-section  (1)  to  the
Corporation or such Government company, as the case may be, shall be dealt
with by the Corporation or such Government company in such manner as may
be prescribed.

XIV of
1947.

Provident
fund  and
other  funds.

9

CHAPTER  VI
COMMISSIONER OF PAYMENTS

Appointment
of  Commissi-
oner of
Payments.

Payment  by
State
Government
to
Commissioner.

14. (1) The State Government shall for the purpose of disbursing the amounts
payable under sections 7 and 8 to the proprietors, by notification in the Official
Gazette, appoint a Commisioner of Payments.

(2) The State 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 of the powers
exercisable by the Commissioner 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
the  State.

15. (1) The State Government shall, within thirty days from the specified

date, pay in cash to the Commissioner, for payment to the proprietors,—
(a) an amount equal to the amount specified in section 7 ; and

(b) an  amount  equal  to  the  amount  payable  to  the  proprietors  under

section 8.

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

(3) Records shall  be maintained  by the  Commissioner in  respect of  the
undertaking in relation to which payment has been made to him under this Act.

(4) The interest accruing on the amount standing to the credit of the deposit
account referred to in sub-section (2) shall ensure to the benefit of the proprietors.

16. (1) The State Government or the Corporation, or where a direction has
been issued by the State Government under sub-section (1) of section 6, a new
Government company, as the case may be, shall be entitled to receive up to the
specified  date,  to  the  exclusion  of  all  other  persons,  any  money  due  to  the
proprietors,  in  relation  to  their  undertaking  which  has  vested  in  the  State
Government, or the Corporation or in such Government company, and realised
after  the  appointed  day,  notwithstanding  that  the  realisation  pertains  to  a
period prior to the appointed day.

Certain
powers  of
State
Government
or
Corporation
or  new
Government
company.

(2) The State Government or the Corporation, or such Government company,
as the case may be, may make a claim to the Commissioner with regard to every
payment made by it after the appointed day, for discharging any liability of the
proprietors, not being any liability specified in sub-section (2) of section 5, 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  State
Government, or the Corporation, or such Government company.

(3)

Save as otherwise provided in this Act, the liabilities of the proprietors
in respect of any transaction prior to the appointed day, which have not been
discharged  on  or  before  the  specified  date,  shall  be  the  liabilities  of
the proprietors.
(G.C.P.)  H  791—3  (2542-9-2012)

1 0

Claims  to  be
made  to
Commissioner.

17. Every person having a claim against the proprietors with regard to any of
the matters specified in the Schedule pertaining to the 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.

Priority of
claims.

18. The claims arising out of the matters specified in the Schedule shall have

priorities in accordance with the following principles, namely :—

(a) Category I shall have precedence over all other categories and Category

II shall have precedence over Category III;

(b) the claims specified in each of the categories 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 ; and

(c)  the  question  of  discharging  any  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.
19. (1) On receipt of the claims made under section 17, the Commissioner
shall arrange the claims in the order of priorities specified in the Schedule and
examine the same in accordance with such order of priorities.

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

Examination
of  claims.

Admission  or
rejection of
claims.

20. (1) After examining the claims with reference to the priorities set out in
the  Schedule,  the  Commissioner  shall  fix  a  date  on  or  before  which  every
claimant shall file the proof of his claim.

(2) Not less than fourteen day’s notice of the date fixed shall be given by
advertisement in one issue of such daily newspaper in the English language, one
issue of such daily newspaper in the Marathi language and in one issue of such
daily  newspaper  in  such  other  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  period  specified  in  the
advertisement.

(3) Every claimant who fails to file the proof of his claim within the period
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 proprietors  an opportunity  of refuting  the
claims and after giving the claimant a reasonable opportunity of being heard,
admit or reject, by order in writing, 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 may hold his sittings and shall, for the purpose of making
an investigation under this Act, have the same powers as are vested in a civil
court under the Code of Civil Procedure, 1908, while trying a suit, in respect of
the following matters, namely :—

V of
1908.

(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 ;

1 1

(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, 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.

XLV
of
1860.
II of
1974.

(7) A claimant, who is dissatisfied with the decision of the Commissioner,
may prefer an appeal against such decision to the principal civil court of original
jurisdiction within the local limits of whose jurisdiction the registered office of
the proprietors 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 of Bombay and
such appeal shall be heard and disposed of by not less than two Judges of that
High Court.

21. After admitting a claim under this Act the amount due in respect of such
claim shall be paid by the Commissioner to the person or persons to whom such
amount is due, and on such payment, the liability of the proprietors in respect
of such claim shall stand discharged.

Disburse-
ment  of
money  by
Commissioner
to  claimants.

22. (1) If, out of the monies paid to him in relation to the undertaking, there
is a balance left   after meeting the liabilities as specified in the Schedule, the
Commissioner shall disburse such balance to the proprietors.

Disburse-
ment  of
amounts  to
proprietors.

(2) Where the possession of any machinery, equipment or other property has
vested in the State Government, or Corporation, or a new Government company,
under this Act, but such machinery, equipment or other property does not belong
to the proprietors, it shall be lawful for the State Government or the Corporation
or such Government company to continue to possess such machinery or equipment
or  other  property  on  the  same terms  and  conditions  under  which  they  were
possessed by the proprietors immediately before the appointed day.

23.  Any  money  paid  to  the  Commissioner  which  remains  undisbursed  or
unclaimed on the date immediately preceding the date on which the office of the
Commissioner is finally wound up, shall be transferred by the Commissioner,
before his office is finally wound up, to the general revenue account of the State
Government ; but a claim to any money so transferred may be preferred to the
State Government by the person entitled to such payment and shall be dealt
with as if such transfer had not been made, and the order, if any, for payment
of the claim, being treated as an order for the refund of revenue.

Undisbursed
or unclaimed
amount  to  be
desposited
with  general
revenue
account.

CHAPTER VII

MISCELLANEOUS

24. 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 other authority.

Act  to  have
overriding
effect.

H  791—3a

1 2

Contracts  to
cease  to  have
effect unless
ratified  by
State
Government
or
Corporation
or  new
Government
Company.

25. Every  contract  entered  into  by  the  proprietors  in  relation  to  their
undertaking, which has vested in the State Government under section 3, 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 appointed day,
cease to have effect unless such contract is, before the expiry of that period,
ratified,  in  writing  by  the  State  Government,  or  the  Corporation,  or  a  new
Government Company, in which such undertaking has been vested under this
Act, and in ratifying such contract, the State Government, or the Corporation,
or such Government company may make such alteration or modification therein
as it may think fit :

Protection of
action  taken
in  good  faith.

Provided that, the State Government, or the Corporation, or such Government
company shall not omit to ratify a contract and shall not make any alteration
or modification in a contract,—

(a) 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  State
Government, or the Corporation or such Government company; and

(b) except after giving 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.

26. (1) No suit, prosecution or other legal proceeding shall lie against the
State Government , or the Corporation, or a new Government company or any
officer  or  other  employee  of  that  Government,  or  the  Corporation  or  such
Government company, or other person authorised by the State Government, or
the Corporation, or such Government company for anything which is in good
faith done or intended to be done under this Act.

(2) No suit or other legal proceeding shall lie against the State Government
or the Corporation, or such Government Company, or any officer or other employee
of that Government, or the Corporation, or such Government Company or other
person  authorised  by  the  State  Government,  or  the  Corporation,  or  such
Government Company for any damage caused or likely to be caused by anything
which is in good faith done or intended to be done under this Act.

Delegation  of
powers.

27. (1) The State Government may, by notification in the Official Gazette,
direct that all or any of the powers exercisable by it under this Act, other than
the powers conferred by this section, section 30 and section 31, may also be
exercised by such 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 State Government.

Penalities.

28. Any person who,—

(a) having in his possession, custody or control any property forming part
of  the  undertaking,  wrongfully  withholds  such  property  from  the  State
Government, or the Corporation or a new Government company; or

(b) wrongfully obtains possession of, or retains, any property forming part

of the undertaking; or

(c) wilfully withholds or fails to furnish to the State Government, or the
Corporation, or new Government company, as the case may be, or any person
or body of persons specified by that Government, or the Corporation or such
Government company, any document relating to the undertaking, which may
be in his possession, custody or control; or

1 3

(d)  fails  to  deliver  to  the  State  Government,  or  the  Corporation,  or  new
Government company, as the case may be, or to any person or body of persons
specified by that Government, or the Corporation, or such Government company,
any assets, books of account, registers or other documents in his possession,
custody or control relating to the undertaking; or

(e)  wrongfully  removes  or  destroys  any  property  forming  part  of  the

undertaking; or

(f)  wrongfully  prefers  any  claim  under  this  Act  which  he  knows  or  has

reasonable cuase to believe to be false or grossly inaccurate,

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

29. (1) Where an offence under this Act has been committed by a company,
every person, who, at the time when 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 :

Offences  by
companies.

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.

30. (1) The State Government may, by notification in the Official Gazette,

make rules for carrying out the provisions of this Act.

Power  to
make  rules.

(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, and the manner in which, an intimation referred

to in sub-section (3) of section 4 shall be given to the Commissioner;

(b) the manner in which the monies in any provident fund or other fund

under section 13 shall be dealt with ;

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

1 4

(3) Every rule made by the State Government under this Act, shall be laid
as soon as may be, after it is made, before each House of State Legislature,
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, and notify such decision in the
Official Gazette, 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.

Power  to
remove
difficulties.

31. If any difficulty arises in giving effect to the provisions of this Act, the
State Government may, by order, not inconsistent with the provisions of this
Act, remove the difficulty :

Repeal  of
Mah.  Ord.  V
of  1984  and
saving.

Provided that, no such order shall be made after the expiry of the period of

two years from the date of commencement of this Act.

32.  (1)  The  Shivraj  Fine  Art  Litho  Works  (Acquisition  and  Transfer  of

Undertaking) Ordinance, 1984, is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken including
any rules made or any order or direction issued under the said Ordinance shall
be deemed to have been done, taken, made or issued, as the case may be, under
the corresponding provisions of this Act.

Mah.
Ord.  V
of
1984.

SCHEDULE

[ See sections 2 (g), 17,18,19, 20 (1) and 22 ]

ORDER OF PRIORITIES FOR THE DISCHARGE OF LIABILITIES OF THE PROPRIETORS FOR PRE-
TAKE-OVER MANAGEMENT PERIOD

Category I—

(a)Wages,  salaries  and  other  dues  payable  to  the  employees  of  the

proprietors in the undertaking.

(b)Deductions  made from  the salaries  and  wages or  the employees  for
provident  fund,  Employees’  State  Insurance  premium  relating  to  Life
Insurance Corporation of India or for any other purposes.

(c) Arrears in relation to contributions to be made by the proprietors to
the  provident  fund,  Employees’  State  Insurance  Fund,  Life  Insurance
Corporation premium and any other arrears under any other law for the time
being in force (excluding gratuity).

Category II—

Principal amount of secured loans advanced by—

 (a) the Central Government;

 (b) the State Government;

 (c) banks and public financial institutions;

 (d) any other sources.

1 5

Category III—

 (a) Any credits availed of by the proprietors for the purpose of carrying on

any trading or manufacturing operations.

 (b) Any dues of State Electricity Board or Government and semi-Government

institutions against supply of goods or services.

 (c) Arrears of interest on loans and advances.

 (d) Revenue, taxes, cesses, rates or other dues to Central Government, the

State Government or any local authority.

 (e) Any other loans or dues.

GOVERNMENT CENTRAL PRESS, MUMBAI

1 7

Maharashtra Government Publication
can be obtained from—

THE  DIRECTOR
GOVERNMENT PRINTING, STATIONERY AND PUBLICATION
MAHARASHTRA  STATE
Netaji Subhash Road,
MUMBAI 400 004.
Phone : 022 - 23632693, 23630695,
23631148, 23634049

THE MANAGER
GOVERNMENT PHOTOZINCO PRESS AND BOOK DEPOT
Photozinco Press Area, Near G.P.O.,
PUNE 411 001.
Phone : 020 - 26125808, 26124759

THE MANAGER
GOVERNMENT PRESS AND BOOK DEPOT
Civil Lines,
NAGPUR 440 001.
Phone : 0712 - 2562615

THE ASSTT. DIRECTOR
GOVERNMENT STATIONERY, STORE AND BOOK DEPOT
Shaha Ganj, Near Gandhi Chowk,
AURANGABAD 431 001.
Phone : 0240 - 2331468, 2331525

THE MANAGER
GOVERNMENT PRESS AND STATIONERY STORE
Tarabai Park,
KOLHAPUR 416 003.
Phone : 0231-2650395, 2650402

AND THE RECOGNISED BOOKSELLERS

