The Jogighopa (Assam) Unit of Ashok Paper Mills Limited (Acquisition and Transfer of Undertaking) Act, 1990
### Registered No. A-12

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# The Assam Gazette

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## EXTRAORDINARY

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#### PUBLISHED BY AUTHORITY

-■?< 152 ., w ?Rfi< 25 CK”$5J<r, 1990s 3 1912 (w )

**No. 152** **Dispur,** **Tuesday, 25th S eptem ber, 1390, .rd Asvina,**

**1012 (S. E.)**

GO VERNME NT OF A SSAM

ORDERS BY THE GOVERNOR

###### LEGISLATIVE DEPARTMENT LEGISLATIVE BRANCH

 NOTIFICATION

 The 24th September 1990

No. LGL.98/89/182. —The following Act of the Assam

Legislative Assembly h-u. received the assent ot the

Pesident is hereby published for general infer nation


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778 THE ASSAM GAZETTE, EXTRAORDINARY, SEPT. 25, 1990

###### ASSAM ACT NO. XV OF 1990 ,
 Received the assent o f the President’s on 12th September 1990

 THE JOGIGHOPA (ASSAM) UNIT OF
 ASHOK. PAPER MILLS LIMITED (ACQUISI­
 TION AND TRANSFER OF UNDERTAKING)
 ACT, 1990*
 An
 Act

 to provide for, in the public interest, acquisi­
 tion of the right, title and interest of the industrial undertaking of Messers the Jogighopa (Assam) Unit of the Ashok Paper Mills Limited, Calcutta and for matters connected therewith or incidental thereto*

 Whereas the Jogighopa (Assam) Unit of the
 Ashok Paper Mills Limited, (Registered Office Cal­ cutta), has been engaged in production, manufac­ ture and procurement of raw materials (therefore) of articles mentioned in the first Schedule to the
 e5ofi95i i j i (Development and Regulation) Act, 1951,
nc u s tr e s

###### namely, paper including newsprint etc* at its Mill
 at Jogighopa in the district at Goalpara in the State
 of Assam, which are essential to meet the needs
 of the public;

 l ®f 1986 Whereas the Industrial Undertaking, namely,
 the Jogighopa (Assam) Unit of the Ashok Paper Mills Limited, Calcutta has become sick and has
 been so held by the Board for Industrial and Finan­ cial Re-construction within the meaning of clause (o) of section 3 of the Sick Industrial Companies
 (Special Provisions) Act, 1985, necessitating its re­
 juvenation and rehabilitation and subscription to
 its all-round growth and development, owing to its public interest and in the interest of the State of
 Assam;

 And whereas investment of large amount of
 money is necessary for the rehabilitation and develop­ ment of, for starting and maintenance of produc­ tion and for securing proper management of the affairs of the aforesaid industrial undertaking;


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**_THE ASSAM GAZETTE, EXTRAORDINARY, SRPT. 25, 1990 779_**

###### And whereas for the purpose of re-construcung
 and rehabilitating the said industrial undertakings and there by forming a viable unit to subserve the interest of the general public and of the State of
 Assam by the augmentation of production and dis­ tribution of bamboo, pulp, paper, newsprint, paper board, caustic soda and chlorine which are essen­ tial for the growth of economy of the country, it is necessary to acquire the right, title and interest of the undertakings of the Jogighopa (Assam) Unit of Messers Ashok Paper Mills Limited, Calcutta;

 It is hereby enacted in the Forty-first Year of
 the Republic of India, by the Legislature of Assam,
 as follows namely:—

 CH AP TER-!

 PRELIMINARY

Sh°andtle 1' *1) This Act may be called the Jogighopa

omrnence- (Assam) Unit of Ashok Paper Mills Limited, Calcutta

###### ment. (Acquistion and Transfer of Undertaking) Act, 1990.

 (2) It shall come into force at once.

 2. In this Act, unless the context otherwise -efinitions. ._
r e q u i r e s

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

 (b) “book or paper” means books of accounts
 deeds, vouchers, writings and documents and shall include any books of accounts, deeds, vouchers and documents having bearing or relation with
 the existing facts or circumstances;

 (c) '‘Commissioner” means Commissioner of pay­
 ments appointed under section 16;

 (d) "Company” means the Jogighopa (Assam)
 Unit of Ashok Paper Mills Limited being a Com-

i O[fi956 ] [pany incorporated under the Companies Act, 1956, ]

###### having its registered office at Calcutta and register­ ed as such.


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**780** **THE ASSAM GAZETTE EXTRAORDINARY,** **SEPT. 25, 1990**

(c) ‘‘Co urt” With respect to any offence under

.his Act, means the Court of a Magistrate of First

Class having jurisdiction in a district, but does not
include the High Court in the exercise of its ori­
ginal jurisdiction;

(f) ‘'Governm ent Company’’ means a Company

formed, after the app ointed day, by the State Govern-

r of 1956 [m e n t a n d ] r e gis te r £ d under the Com panies Act, 1956

and shall include a Com pany, if any, formed by
the State Government earlier for the specific pu r­

pose cf acquisition and management of the indus­
trial undertaking of the Com pany registered under the

Companies Act, 1956;

(g) “N otification” means a notification published

in the Official Gazette;

(h) “Prescribed” means prescribed by rules under

this Act;

(i) “State Government’’ means the Government

of Assam;

(j) words and expressions used herein and not

defined but defined in the Industries (Development

and Regulation) Act, 1951 and the Com panies Act,

65 oi i95i j956, have t h e meanings respectively assigned to them

in these Acts*

##### chapter- I I

Acquisition and transfer of the

undertakin g of the company.

Ind” vestir,” appointed day, the undertakin g o f the

_in thTstatlCompany; and the right, title and interest of the_

under ^ [o m] Pany in relation to its undertaking, shall, by

/Iking™ the virtue of this Act, be transferred to, and shall vest

company. in , the State Government :

Provided that noth ing herein conta ine d or con­

tained in any oth er law for the time being in force
or in the Memorandum or Articles of Association

of the Company shall preclude from transferring

and vesting the undertaking of the Company to the
State Government or to a Government Company,
as the case may be-


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f'HE ASSAM GAZETTE. EXTRAORDINARY, SEPT. 25, !990 781

###### « undertaking of the Company shall be
 ve^ng0 deemed to include all assets, rights, lease holds,
 powers, authorities and privileges, and all prope­
 rties movable and immovable including lands, buil­ dings, workshops, goods and chattels including stores, machineries and equipments vehicles, office
 furniture, books and stationery, cash balances including cash in hand, cheques, demand drafts, reserved funds, investments, book debts and all other rights and interests in, or arising out of such properties as
 were, immediately before the appointed day, in the
 ownership, possession or control of the undertaking of the company, whether within or outside India and all other books and papers of accounts, regi­ sters and all other documents of whatever nature relating thereto.

 (2) All properties and assets 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 other encumbrances affecting it,
 and by force of such vesting any attachment, injunc­ tion or any decree or order of any court or other authority restricting the use of such property or assets in any manner or appointing any receiver in respect of the whole or any part of such property or assets shall be deemed to have been withdrawn.

 (3) Every mortgage 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 such manner as may be prescribed, an intimation to the State Go­ vernment or to Commission or any such officer as may be appointed by the State Government in
 that behalf, of such mortgage, charge, lien or other interest.

 (4) The mortgage of any property or any other person holding any charge, lien or other interest in, or in relation to, any such property referred to in sub-section (3) shall be entitled to claim, in accordance with his rights and interests payment of the mortgage money or other dues in whole, or


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782 THE ASSAM GAZETTE, EXTRAORDINARY, SEPT 25, 1990

###### in part, out of the amount of compensation deter­
 mined under section 8 and also out of the monies determined under section 9 but no such mortgage, charge, lien or other interests shall be enforceable against any property which has vested in the State Government.

 (5) If on the appointed day, any suit appeal or other
 proceeding by or against the Company, of whatever nature in relation to any property which has ves­ ted in the State Government, under section 3,
 is pending, the same shall not abate, be disconti­ nued or be, in any way prejudicially affected by reason of the transfer of the undertaking of the
 Company or of anything contained in this Act, but the suit, appeal or other proceeding may be con­
 tinued, prosecuted or enforced by or against the
 Company.

Licences an d 5. Anv licence, permit or other instrument gran-

ments not to ted. to the Company in relation to the undertaking
###### diverting which has vested in the State Government under
and tran sfer section 3 of this Act, at any time before the

###### kinUofethe‘ [a] PP°i[n t e] d day and in force immediately before that
 company, day, shall continue to be in force on and after such
 day in accordance with its tenure in relation to
 and for the purpose of such undertaking of the Company and on and from the date of vesting of
 such undertaking in a Government Company un­ der section 7, the concerned Government Com­ pany shall be deemed to be substituted
 in such licence, permit or other instrument
 as if such licence, permit or other instrument
 has been granted to such Government Company and such Government Company shall hold it for the remaining period for which the concerned Company would have held it under the terms thereof-

 state go - 6- (1) Liabilities of the undertaking of the
 \ [ern]“^ ‘ Company incurred in any period prior to the ap- notmt>nbe pointed day shall be the liability of the Company

Hrior' Ha* [a n] ^ t>e enforceable against it and not against

###### bHitiw.[la]" the State Government or where the undertaking of
 the Company are directed, under section 7, to vest in a Government Company, against that Govern­

m en t C om pany;


-----

###### Provided that the State Government, after ob­
 serving proper financial formalities and by notifi­
 cation, may declare certain liabilities or class or classes of liabilities to be the liabilities of the State Government or the Government Company, as the case may be.

 (2) No award, decree or order of any Court,
 Tribunal or other authority in relation to the under­
 taking of the Company passed on or after the appointed day in respect of any matter, claim,
 dispute or cause of action arising before the ap­ pointed day shall be enforceable against the State Government or, against the Government Company where the undertaking of the Company stands transferred to and vested in a Government Company under this Act-

 (3) No legal liability for controvertion before
 the appointed day by the undertaking of any
 provision of law, for the time being in force, shall be enforceable against the Central or the State Government or where the undertaking of the
 Company are directed under section 6, to vest in a Government agaimt that Government Company-

 rowers of 7- (1) Notwithstanding anything contained in

**the stat e** section 3 and section 4, the State Government

###### w*dSre«ent may, if it is satisfied that a Government Company

**vesting of** jg willing to comply, or has complied, with such

###### t»'ing[d]of" terms and conditions as that Government may think

**the co mp any fit t** impose, direct, by notification, that the un-
0

###### CompFny’[4]' dertaking of the Company and the right, title and
 interest of the Company in relation to its under­
 taking which has vested in that Government, vest in that Government Company either on the date of the notification or on such earlier or later date
 (not being a date  earlier than the appointed day) as may be specified in the notification-

**(2)** Where the right, title and interest of the

###### Company in relation to its undertaking vest in a Government Company under sub-secticn (1), the 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


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###### rights and liabilities of the State Government in relation to such undertaking shall, on and from
 the date of such vesting, be deemed to have become
 the rights and liabilities, respectively, of the Govern­ ment Company.
 CHAPTER-III

 payment of amounts

Pav men t of For the transfer to and vesting in the State

###### Amoum, ° Government under section 3 and the Government
 Company under section 7 of this Act, and the right, title and interest of the Company shall be given by the State Government or the Government Company, as the case may be, in cash and in the manner specified in Chapter-VI, an amount that may be fixed by the State Government duly con­ sidering the value of assets of the Company and after observing proper financial formalities.

 Pa m nt of ^or deprivation o f the Company of ’
 imthcr" ° the management of its undertaking there shall be
 amount. given to the Company by the State Government
 such sums as the State Government may decide,
 after observing due financial formalities, to be due
 to the Company.

 (2) The amount specified in section 8 and
 amount to be determined under sub-section (1) shall carry simple interest at the rate of four percent
 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 or by the Government Company, as the case may be, to the Commissioner-

 (3) The amounts specified in sub-section (1)
 and sub-section (2) of this section shall be paid in addition to the amount specified in section 8:

 Provided that the liabilities of the Company
 prior to the appointed day, that is ‘o say, the date on which the undertaking has been transferred to and vested in the State Government or the Government Company and in relation to the affairs of the undertaking shall be discharged from the


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THE^ ASSAM GAZETTE. EXTRAORDINARY, SEPT. 25, 1990 785

###### amount specified in section 8 and in sub-section (1) an ,1 (2) of section 9 in the manner prescribed and
 in accordance with the rights and priorities men­ tioned in the Schedule.

 (4) Where liability of the Company in respect
 of the undertaking specified in the Schedule is
 discharged by the State Government or by the Government Company according to the order of priorities mentioned in the Schedule, the amount
 to be paid to the Company under section 8 and sub-sections (1) and (2) of this section, shall stand reduced to that extent.

 CHAPTER—IV

 MANAGEMENT AND ADMINISTRATION OF
 THE UNDERTAKING OF THE COMPANY.

**•md'Admi'nis-** The Government Company or any person

###### uat.onofTheOr body of persons which the Government Ccm-
 ofdthe^om P[a n y m a] Y> by order in writing, specify, shall be pany* °“ entitled to exercise the powers of general superin­
 tendence, direction, control and management of the affairs of the business of the Company after the right, title and interest of the undertaking of the Company have keen transferred to and vested in the Government Company under section 7 of this Act. The person or body of persons so authori­
 sed by the Government Company shall be entitled to do all such things as the Government Com­
 pany is authorised to do under authority of the
 State Government or, under the Rules under this
 Act.

 Duty ofper- 11* On the vesting of the management of the
 sons in char-undertaking of the Company in a Government

**ge men t o f** Company, all persons, in-charge of the manage-

###### the underta. the Company im-
m e n t o [f the undertaking of ]

###### deuvcrto*n mediately before such vesting, shall be bound to

**assets etc.** deliver to the Government Company all assets,
###### books and papers of accounts, registers and other documents in its custody relating o the under­
 taking.

 _


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786 THE ASSAM GAZETTE. EXTRAORDINARY SEPT. 5, 1990

pwSbontyin°f (1) Any person, who has, on the appoin-

pos session or ted day, in his possession or under his control

a”"Ebooks [a n] y assets, books, documents or other papers

or d o c u m co ts fe la ti n g to or belonging to the undertaking or

r!'latine to would have so belonged if the undertaking of the

taking of the company had not vested m tire State Govern-

dehv^su c'h [m e n] t °[r SUC]^ Government Company, shall be lia-

assets, books ble to account for the said assets, books, docu-

###### melt[d]toVhe[m e n t]s [an<] ^ other papers to the State Government
 sta"eSGover or the Government Company, as the case may
 nment. b , Government
e a nd shall deliver them upto the

###### Company or to such person or persons as the
 State Government or the Government Company may specify in this behalf.

 (2) The Company shall within such period,
 as the State Government may allow in this behalf, furnish to the State Government, a complete in­ ventory of all properties and assets, as on the
 appointed day, pertaining to the undertaking which
 has vested in the State Government under this Act, and for this purpose the State Government or, in
 eases so warranted, the Government Company shall
 afford all reasonable facilities to the Company. v
 (3) The State Government or the Government
 Company may take, or cause to be taken, all
 necessary steps for securing possession of the
 undertaking of the C 'mpany which has vested in the State Government or the Government
 Company under this Act.

Liability of 13. The Government Company shall maintain
the Govern­

ment Com­ accounts of the undertaking of the Company in
pany to .main accordance with the provisions of the Companies
tain accounts
o the unJer- Act, 1956.
cak ing of the CHAPTER—V

Company.

###### PROVISIONS RELATING TO EMPLOYEES OF
 THE COMPANY

Em plo ym ent 14. (1) Every person who has been immediately

f c>ertain before the appointed day, employed in the under-

###### t“ ?onytinue. taking of the Company shall become on and from
 the appointed day, an employee of the Govern­ ment Company with the same rights and


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I’HE ASSAM GAZETTE. EXTRAORDINARY, SE T . 25 1990 '/87

###### Privileges as to pension, gratuity and other matters as would have been admissible to him if the rigG ts in relation to the undertaking had not been
 transferred to and vested in the Government Co n- pa y and shall continue to do so until and unless his employment in the Government Company duly terminated or until his remuneration and other
 conditions of service are duly altered by the
 Government Company.

 (2) Notwithstanding anything contained in
 55 of i95i sub-section (1), any liability accruing or arising as
 a result of continuance of any employee of the undertaking of the Company in the service of the Government Company under this section, shall be
 borne by the Government Company only in res­ pect of any period on or after the appointed day,
 Whichever date may be approved by the State
 Government.
 (3) Notwithstanding anything contained in the
 Industrial Disputes Act, 1947 or any other law for the time being in force, the transfer of the ser­ vices of any officer or other person employed in the undertaking of the Company, to the Govern­ ment Company, 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.

 Provident 15. (1) Where before the appointed day the
 otherF-nds undertaking of the company had established a Pro­
 vident Fund, superannuation, welfare or other fund for the benefit of the persons employed in the undertaking, the monies relatable to the officers or other employees whose services have been transferred by or under this Act, to the Government Company shall, out of the monies standing, on the appointed day, to the credit of such provident fund super­ annuation, welfare or other fund, stand transferred to and vest in the Government Company.
 (2) The monies which stand transferred undc[r]
 sub-section (1) to the Government Company shall
 be dealt with by the Government Company in such manner as may be prescribed.


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788 THE ASSAM GAZETTE, EXTRAORDINARY, SEPT. 25,1990

###### CHAPTER-VI

 COMMISSIONER OF PAYMENTS

 Appointmeni 16. (j) ygg state Government shall, for the
 oner of p
a[y-purpose ot disbursing the amounts payable under ]

###### menu. sections 7 and 8, by notification, appoint a Com­
 missioner 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. The Commissioner may autho­ rise different persons to exercise different powers.

 (3) Any person authorised by the Commissioner
 to exercise any of the powers exercisable by him
 may exercise those powers in the same manner and »
 with the same effect as if such powers have been conferred on that person directly by the State Go­
 vernment under this Act.

 (4) The salaries and allowances of the Commi­
 ssioner and other persons appointed under this section shall be defrayed out of the consolidated fund of State-

 theyms"ate[y] 0 ) The State Government or the Govern-

GoverRment ment Company, as the case may be, shall within
###### Mion«mmi" thirty days from the appointed day or the speci­
 fied date as may be prescribed, pay in cash the amounts mentioned in clauses (a) and (b) of this section to the Commissioner for payment to the
 Company and to discharge the liabilities of the Company in relation to the undertaking prior to the appointed day in accordance with the Schedule;

 (a) an amount equal to the amount specified in
 section 8; and

 (b) an amount equal to the amount payable to
 the Company under section 9.
 (2) A deposit account shall be opened by the
 State Government in favour of the Commissioner


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I'HE ASSAM GAZETTE, EXTRAORDINARY SEPT. 2\ 1990 789

###### in the Public Account of the State, and every amount paid under this Act to Gomirns ioner 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) The interest accruing on the amount stand­
 ing to the credit of the deposit account referred to in sub-section (2) shall accrue to the said account.

 Powers of 18- (1) The State Government or the Government
 suu Gover-Company, as the case may be, shall be entitled to nment or receive, upto the specified date, to the exclusion of
 company6.114 all other persons, any money due to the Company
 in relation to the undertaking which has vested in the State Government, or the Government Com­ pany, as the ease may be, and realised after the appointed day, notwithstanding that the realisation pertains to a period prior to the appointed day.

 (2) Save as otherwise provided in this Act,
 the liabilities of the Company in respect of
 any period prior to the appointed day, which have
 not been discharged by the State Government or the Government Company, shall be the liabilities
 of the Company.

 beCmad* to Every person having a claim with regard
 them com- to any of the matters specified in the Schedule,

missioner. pertaining to the undertaking of the Company ac­
###### quired under this Act, shall prefer such claim be­ fore 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 prefering the claim within the period of thirty days, he may entertain the claim within a further period of thirty days, but not thereafter.

p io rit of 20- The claims made under section 19 shall

###### claims'?70 have priorities in accordance with the following
 principle, namely ?■—
 (a) categories listed higher will take precedence
 over the ones listed lower in the Schedule


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790 THE ASSAM GAZETTE. EXTRAORDINARY. SEPT. 25. 1990

###### that is to say, category I will take prece­ dence over all others and category II while coming next to category I will take precedence over category III etc.
 and so on and so fo rth;

 (b) the claims specified in each of the cate­
 gories 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 II
 shall be discharged in the manner ag­
 reed upon with ti.e bank, financial in­
 stitutions subject to the priorities speci­
 fied in this section; and

 (d) the question of discharging any liability
 with regard to a matter specified in a
 lower category shall arise only if a sur­ plus is left after meeting all the liabili­
 ties specified in the immediately higher category.

Examina- 21. (1) On receipt of the claims made under

             - ion of Section 19, the Commissioner shall arrange the claims

claims. in 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.

Admission 22. (1) After examining the claims with reference

###### of c S * [t o] . ^e priorities set out in the Schedule, the Com­
 missioner shall fix a date on or before which every claiment shall file the proof of his claim :


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THE ASSAM GAZETTE. EXTRAORDINARY, SEPT. 25, 1990 791

###### (2) Notice calling upon the claimants to file
 proof of one’s claims to the Ccmmissicner shall be published in the Official Gazettee and shall be put in advertisement in < ne issue respectively of: —

 (i) any daily newspaper in English language
 having circulation in the major part of the country ;

 (ii) any daily newspaper in Assamese langu­
 age; and

 (iii) any daily newspaper in other regional
 language as the Commissioner may con­ sider suitable-

 Not less than fourteen days’ notice from the
 last of the dates of such advertisement cr publication shall be allowed for filing proof of ihe claimant-

 (3) Claimant who d< es not file the proof of
 his claim within the time specified by the Commis­ sioner, shall not b' considered for any payment to
 be made by the Commissioner-

 (4) The Commissioner shall, after such in­
 vestigation as may, in his opin on, bo necessary and
 after giving the Company an opportunity of refu­ ting his claim and after giving the claimant a i a- scnable opportunity of being heard, by order in
 writing admit »r reject ti e claim in whole or in part.

 (5) The Commissioner shall also decide any
 dispute as tc the person or persons who is or who are entitled to the amount and any dispute as to
 who are tl e legal representative of any deceased
 claimant.

 f6) The Commissioner sh all have the power
 to regulate his own procedure in all matters ari­ sing out t f the discharge of his functions, including
 the pi ace or places at which he will held his


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7 92 THE ASSAM GAZETTE, EXTRAORDINARY SEPT. 25, 1990

###### sittings and shall, for the purpose of making an in­ vestigation under this Act, have the same powers as are vested in a Civil Court under the Code of

’ °f [1 9 0 8] Civil Procedure, 1908, in respect of the following

###### matters, namely

 (a) the summoning and enforcing the at­
 tendance of any witness and exami­ ning him on Oath ;

 (.b) the discovery and production of any
 document or other material object pro­ ducible as evidence ;

 (c) the reception of evidences on affi­
 davits ;

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

45 of 1860
###### (.7) Any investigation before the Commis­
 sioner shall be deemed to be a judicial proceeding
 within the meaning of Sections 193 and 228 of the
 2 of 1974 Indian Penal Cede, and the Commissioner shall be
 deemed to be a Civil Court for the purposes of
 Section 195 and Chapter XXVI of the Code of Cri­
 minal Procedure, 1973.

 (8; 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 undertaking of the Government Com­
 pany is situated :

 Provided that where a person who is a Judge of
 High Court is appointed to be the Commissioner sue;, appeal shall lie to the High Court at Guwahati, and such appeal shall be heard and disposed of by not less than two Judges of that High Court.


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THE ASSAM GAZETTE. EXTRAORDINARY , SEPT. 25, 1990 793

D is burs em ent 23. After admitting a claim under this Act

###### theCommiy- the amount due in respect of such claim shall be
S

sio n er to c ia i. 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 Company in respect of such claim shall stand discharged.

 Disbur«emen- 24. (1) If, out of the monies paid to him in

nts° [f] to [m] ° h e relation to the undertaking of the Company, there
###### Company, is a balance left after meeting the liabilities in
 accordance with the priorities as specified in the
 Schedule, the Commissioner shall disburse such bala­ nce to the Company.

 (2) Where the possession cf any machinery,
 equipment or other property has vested in the
 State Government or the Government Company,
 as the case may be, under this Act, but such machinery, equipment or other property does
 not belong to the Company, it shall be lawful
 for the State Government or the Government
 Company to continue to possess such m chinery,
 equipment or other property on the same terms
 and conditions under which ti ey were possessed
 by the Company immediately before the appointed day.

Un disbm sed 25. Any money paid to the Commissionei which
or un cla imed am ou nt to remains undisbnrsed or unclaimed on the date im­
be deposited mediately preceding the date on which the office of

with general the the Commissioner is finally worked up, shall be

revenue transferred by the Commission’r, before his office
acco un t. is finally wound up, to the general revenue ; ccount

###### of the State Government. A claim to any money
 so transferred may be profeired to the State Govern­
 ment by the person entitled to such payment and
 shall be dealt with as if such transfer has not been made and the older, if any, for payment of the claim being treated as an order, for the refund of
 revenue.

power of 26. For the purpose of ascertaining whether any

###### wspectioc by p ° claiming p ayment under this Act, is entitled
e rs n

###### ^ ommi.uon- Commissioner shall have the right and

power to—


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**7[9]** **•'** **THE ASSAM GAZETTE, EXTRAORDINARY . SEPT. 2% 19[c]** **0**

###### (a) require any person, having the possession,
 custody or contract of any register or record of
 the undertaking of the Company, to produce such register or record before the Commissioner;

 (b) require any person to make any statement
 or furnish any information which may be required by the Commissioner.

 Assumption 27 (1) Where any liability of the Company
 rgeTiiaWiUy. [a r i] sing out of any item specified in the category-I
 of the Schedule is not discharged fully by the
 Commissioner out of the amounts paid to him under this Act, the Commissioner shall intimate in writing to the State Government to the extent of the lia­
 bility which remains undischarged and that liability
 shall be assumed by the State Government.

 (2) The State Government may, by order, direct
 the Government Company to take over the liability *
 assumed by the State Government under sub­
 section (1) and on receipt of such direction, it shall
 be the duty of the Government Company to discharge
 such liability.

 CHAPTER—VII

 MISCELLANEOUS

Act to have 28- The provisions of this Act shall have effect

###### effect1.61118 notwithstanding anything inconsistent therewith 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.

 Mas^uhave Every contract entered into by the under-

effeot u n le ss'taking of the Company which has vested in the

###### «heifiedtate State Government under section 3, for any service,

Government sale or supply, and in force immediately before the
or Govern- appointed day, shall, on and from expiry of one

###### ”any, °[m]'hundred and eighty days from the appointed day,
 cease to have effect unless such contract before the expiry of the said period is ratified, in writing by


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THE ASSAM GAZETTE, EXTRAORDINARY, SEPT. 25, 1990 795

: e State Government or tlie Government Company

###### m which the undertaking of the Company has
 vested under this Act and in ratifying such contract,
 he State Government or Government Company may
 make such alterations or modifications therein as it, may think fit :

 Provided that the State Government or the
 Government Company shall not omit to ratify a
 contract and shall not make any alteration or
 modificath r. in a contract—

 (a) unless it is satisfied that such contract is
 unduly omrous or has been entered into in bad faith or is detrimental to the interest of the State Government or the 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.

 30. Any person, who,—

 (a) having in his possession, custody or con­
 trol any property forming part of the undertaking
 cf the Company wrongfully withholds such pro­ perty from the State Government or the Govern­ ment Company ; or

 (b) wrongfully obtains possession of or re­
 tains any property forming part of the undertak­ ing of the Company which has vested in the State Government or in the Government Company under this Act ; or

 (c) wilfully withholds or fails to furnish to
 the State Government or Government Company, as the case may be, any document relating to the
 undertaking, which may be in his possession cus­
 tody or control; or

 (d) wilfully fails to furnish to the State Go­
 vernment or the Government Company, as the
 case may be, any assets, books of accounts


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796 THE ASSAM GAZETTE EXTRAORDINARY SEPT. 25 i950

###### registers or other documents in his possession,
 custody or control, relating to the undertaking; or

 (e) wrongfully removes or destroys an pro­

perty forming pa rt of the undertaking or prefers
any claim under this Act which he knows or has
###### reason to believe to be false or grossly inadequate ;

 shall on conviction be punishable with impri­
 sonment for a term which may extend to two years or with fine which may extend to ten thousand rupees or with both.

 31. No Court shall take cognizance of an offer'ce
 oF°Offences punishable under this Act, except with the pre-

with previous ious sanction of the State Government or of an
v

san ction onxv
a u t [fr]o r [j]sC([j fry Government in this behalf.]

###### offences by 30, (l) where an offence under this Act has
 companies. fr
e e n [ committed by a company, every person who ]

###### at the time when the offence was committed, was insharge of. and was responsible to the Company for conduct of business of the Ccmpany, as well as the Company, shall be deemed to be guilty of offence and shall be liable to be proceeded against
and pun ished 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 commis­ sion 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 con­ sent or connivance of, or is attributable to any neglect on the part of any Director, Manager, Secretary or ether officer, then such Director, Mana­ ger, Secretary or officer, shall be deemed to be guilty of that offence and shall be liable to be preceded against and punished accordingly.


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THE AgSAM GAZETTE, EXTRAORDINARY, SEPT. 25, 1990 797

Explanation ;
###### For the purposes of this section—

(a) “company” means any body corpo rate,

###### and includes a firm or other association of indivi­ duals ; and
 (b) ‘‘director ’ in relation to a firm, means
 a partner in the firm.

 fctwn^uken $3. (1) No suit, prosecution or other legal pre-
 n'good fai'h.ceeding shall lie against the S[f]ate Government or
 any officer of that Government or the Government Company or other person authorised by that Go­ vernment Company for anything which is done or intended to be done under this Act in good fadh.

 (2) No suit, prosecution or other legal pro­
 ceedings shall lie against the State Government or aov of its officers or other employees of the Go­
 vernment Company or any officer or other person
 authorised by the Government Company for any damage caused or likely to be caused by anything
 which is done or intended to  be done under this Act in good faith.

 S[eI<]?w-°sn 34-{l) The State Government may, by notifi-

pow r8- cation, direct that all or any of the powers exer­

###### cisable by it under this Act, other than the powers conferred by section 35 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.

 35.(1) The State Government may, by notifi- ma ernes
c a |j Qn r u [i]eS[ for carrying out provisions of]

###### this Act.
 (2) In particular and without prejudice to the
 generality of the foregoing power, such rule may provide for all or any of the following matters,
 namely


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798 TH E ASSAM GA ZETTE, EX TR A O R D I. n ARY, SEPT. 25, 1S<>0

###### (a) the time within which, and the manner
 in which, an intimation referred to in sub-section (2) of section 4 shall be given ;

 (b) the form and the manner in which and
 the conditions under which, the Government Com­ pany shall maintain the accounts as required by
 section 13 ;
 (c) the manner in which moneys in any provident
 fund or other fund referred to the section 15 shall be dealt with ;
 (d) any other matter which is required to be
 or may be prescribed.

 (3) Every rule made by the State Government
 under this Act, shall be laid as soon as may be after it is made, before the Assam Legislative Assembly 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 successive sessions aforesaid, the State Legislature agrees in making any modifica­ tions in the rule or the State Legislature agrees
 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. Any such modification or annulment shall, however,, be with­ out prejudice to the validity of anything previously done under that rule.

 power to 36. If any difficulty arises in giving effect to
 difficulties, tbe provisions of this Act, the State Government
 may [as occasion arises, by order, not inconsistent ]
**#**

###### with the provisions of this Act, remove the difficulty :

 Provided that no such order shall be made
 after expiry of a period of two years from the date on which this Act, is first published in the Official Gazette.

 Repeal 37. (i) The Jogighopa (Assam) Unit of Ashok
 saving, paper Mills Limited ( Acquisition and Transfer of
 Undertaking) Ordinance, 1990 is HEREBY RE­ PEALED.


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THE ASSAM GAZETTE. EXTRAORDINARY. SEPT. 25. 1990 799

###### (ii) NOTWITHSTANDING such repeal; any­
 thing done or any action taken or purported to
 have been taken under the ordinance so repealed
 shall be deemed to have been done or taken under corresponding provision of this Act.

 THE SCHEDULE
 ( See sections 9, 19, 20, 2 1, 22 and 24 )

 Order of priority for the discharge of the
 liabilities of the Company in respect of the Under­ taking.
 Pre-Appointed Day Management period.

 CATEGORY: I Employees’ dues on account of unpaid salaries
 and wages, provident fund, Employees’ State Insu­ rance Contribution and any e thcr amounts due
 to employees before the date of taking over of
 the management of the Undertaking of the Company on the appointed day.

 CATEGORY : II Secured loans ' of the Bank and Financial
 Institutions.
 CATEGORY : III Revenue, taxes, cesses, rat s and other due to
 the Central and State Government and local
 authorities or State Electricity Board.
 CATEGORY : IV
 Principal amount of unsecured loans advanced
 by Banks and Financial Institutions,
 CATEGORY : V
 Amounts due by way of interest or, unsecured
 loans referred to the Category IV.
 CATEGORY : VI
 Any other credit availed of for the purposes
 of carrying on any trading or manufacturing
 operations and any ether dues.

 K. LASKAR,
 Secretary to the Govt of Assam,
 Legislative Department.

GU WAH ATI—Printed & published by the Jy Director (P ), Directorate of Ptg. and

Sty., Assam, Guwhaati—2, (Ex-G zette) No. 303—860—50)- 25-9 -1990’


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