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THE TEA COMPANIES (ACQUISITION AND TRANSFER OF SICK TEA UNITS) ACT,1985


Published: 1985-05-28

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THE TEA COMPANIES (ACQUISITION AND TRANSFER OF SICK TEA UNITS)

ACT,1985
ACT NO. 37 OF 1985
[28th May, 1985.]


An Act to provide for the acquisition and transfer of the sick tea

units specified in the First Schedule and the right, title and

interest of the tea companies in respect of the said tea units with a

view to securing proper reorganisation and management of such tea

units so as to subserve the interests of the general public by

augmenting the production and manufacture of different varieties of

tea which are essential to the needs of the economy of the country and

for matters connected therewith or incidental thereto.



WHEREAS the sick tea units specified in the First Schedule had

been engaged in the production and manufacture of different varieties

of tea;



AND WHEREAS the management of the said tea units was taken over by

the Central Government under the Tea Act, 1953 (29 of 1953);



AND WHEREAS the Central Government had invested large sums of

money with a view to making the said tea units viable;



AND WHEREAS further investment of large sums of money is

necessary for reorganising and rehabilitating the said tea units;



AND WHEREAS the acquisition by the Central Government of the said

tea units is necessary to enable it to invest such large sums of money

and to protect the large investments already made and also the

interests of the workmen employed therein by proper reorganisation and

management of the said tea units and thereby to augment the production

and manufacture of different varieties of tea which area essential to

the needs of the economy of the country;



BE it enacted by Parliament in the Thirty-sixth Year of the

Republic of India as follows:--


CHAP
PRELIMINARY


CHAPTER I



PRELIMINARY


1.
Short title and commencement.


1. Short title and commencement. (1) This Act may be called the

Tea Companies (Acquisition and Transfer of Sick Tea Units) Act, 1985.



(2) It shall be deemed to have come into force on the 8th day of

April, 1985.



192


2.
Definitions.


2. Definitions. In this Act, unless the context otherwise

requires,--



(a) "appointed day" means the date of commencement of this

Act;



(b) "Commissioner" means the Commissioner of Payments

appointed under section 13;



(c) "notification" means a notification published in the

Official Gazette;



(d) "prescribed" means prescribed by rules made under this

Act;



(e) "sick tea unit" means a tea unit, specified in column

(2) of the First Schedule, the management of which had, before

the appointed day, been taken over by the Central Government

under the Tea Act, 1953 (29 of 1953);



(f) "specified date", in relation to any provision of this

Act, means such date as the Central Government may, by

notification, specify for the purposes of that provision and

different dates may be specified for different provisions of this

Act;



(g) "tea companies" means the companies (being companies as

defined in the Companies Act, 1956 (1 of 1956). specified in

column (3) of the First Schedule;



(h) "Tea Trading Corporation" means the Tea Trading

Corporation of India Limited, a company incorporated and

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



(i) words and expressions used herein and not defined but

defined in the Tea Act, 1953 (29 of 1953), shall have the

meanings respectively assigned to them in that Act;



(j) words and expressions used herein and not defined either

in this Act or in the Tea Act, 1953 (29 of 1953), but defined in

the Companies Act, 1956 (1 of 1956) shall have the meanings

respectively assigned to them in the Companies Act, 1956.


CHAP
ACQUISITION AND TRANSFER OF THE SICK TEA UNITS OF THE TEA COMPANIES


CHAPTER II



ACQUISITION AND TRANSFER OF THE SICK TEA UNITS OF THE TEA COMPANIES


3.
Acquisition of rights of tea companies in respect of sick tea units.


3. Acquisition of rights of tea companies in respect of sick tea

units. (1) On the appointed day, every sick tea unit and the right,

title and interest of every tea company in relation to its sick tea

units or, as the case may be, sick tea unit shall, by virtue of this

Act, stand transferred to, and vest in, the Central Government.



(2) Every sick tea unit which stands vested in the Central

Government by virtue of sub-section (1) shall, immediately after it

has so vested, stand transferred to, and vested in, the Tea Trading

Corporation.



193


4.
General effect of vesting.


4. General effect of vesting. (1) Every sick tea unit 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 tea company concerned,

whether within or outside India, and all books of account, registers

and all other documents of whatever nature relating thereto and shall

also be deemed to include the liabilities specified in sub-section (1)

of section 24.



(2) All properties as aforesaid which have vested in the Tea

Trading Corporation under sub-section (2) of section 3 shall, by force

of such vesting, be freed and discharged from any trust, obligation,

mortgage, charge, lien and all other incumbrances affecting 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 Tea Trading Corporation 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 interests, payment of the mortgage money or other dues,

in whole or in part, out of the amounts directed to be given under

sections 6 and 7 to the tea company concerned but no such mortgage,

charge, lien or other interest shall be enforceable against any

property which has vested in the Tea Trading Corporation.



(5) Any licence or other instrument granted to a tea company in

relation to its sick tea unit which has vested in the Tea Trading

Corporation under sub-section (2) of 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 sick tea unit, and that

Corporation shall be deemed to be substituted in such licence or other

instrument as if such licence or other instrument had been granted to

such Corporation and such Corporation shall hold it for the remainder

of the period for which the tea company 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 matter specified in

sub-section (1) of section 24, in respect of the sick tea unit of any

tea company which has vested in the Tea Trading Corporation under sub-

section (2) of section 3, instituted or preferred by or against that

company, is pending, the same shall not abate, be discontinued or be,

in any way, prejudicially



194



affected by reason of the transfer of the sick tea unit of such tea

company or of anything contained in this Act, but the suit, appeal or

other proceeding may be continued, prosecuted or enforced by or

against the Tea Trading Corporation.


5.
Tea companies to be liable for certain prior liabilities.


5. Tea companies to be liable for certain prior liabilities.

Subject to the other provisions of this Act, every liability, other

than the liability specified in sub-section (1) of section 24, of a

tea company in respect of any period prior to the appointed day, shall

be the liability of that company and shall be enforceable against it

and not against the Tea Trading Corporation.


CHAP
PAYMENT OF AMOUNTS


CHAPTER III



PAYMENT OF AMOUNTS


6.
Payment of amount.


6. Payment of amount. Every tea company shall be given, by the

Central Government, for the transfer to and vesting in that Government

under sub-section (1) of section 3 of the sick tea unit or, as the

case may be, each sick tea unit of that company and the right, title

and interest of that company in relation to such sick tea unit, in

cash and in the manner specified in Chapter VI, such amount as is

specified against the name of that sick tea unit in column (4) of the

First Schedule.


7.
Payment of further amount.


7. Payment of further amount. (1) Every tea company shall be

given, by the Central Government, per annum, for the deprivation of

the management of its sick tea unit, an amount as is specified against

the name of that sick tea unit in column (5) of the First Schedule,

for the period commencing on the date on which the management of such

sick tea unit was taken over in pursuance of the order made by the

Central Government under the provisions of the Tea Act, 1953 (29 of

1953) and ending on the appointed day.



(2) Every amount specified in columns (4) and (5) of the First

Schedule 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 the payment of such amount is made by the Central

Government to the Commissioner.



(3) The amounts determined in relation to any tea company in

accordance with the provisions of sub-section (2) shall be given by

the Central Government to the tea company in addition to the amounts

specified in columns (4) and (5) of the First Schedule against that

company.


CHAP
MANAGEMENT, ETC., OF THE SICK TEA UNITS OF THE TEA COMPANIES


CHAPTER IV



MANAGEMENT, ETC., OF THE SICK TEA UNITS OF THE TEA COMPANIES


8.
Management, etc., of the sick tea units of the tea companies.


8. Management, etc., of the sick tea units of the tea companies.

The Tea Trading Corporation or any person which that Corporation may,

by order in writing, specify, shall be entitled to exercise the powers

of general superintendence, direction, control and management of the

affairs and business of a sick tea unit, the right, title and interest

of the tea company in relation to which have vested in the Corporation

under sub-section (2) of section 3, and do all such things as the tea

company of the sick tea unit is authorised to exercise and do.



195


9.
Duty of persons in charge of management of the sick tea units todeliver

all assets, etc.


9. Duty of persons in charge of management of the sick tea units

to deliver all assets, etc. (1) On the vesting of the management of

the sick tea units of the tea companies in the Tea Trading

Corporation, the persons in charge of the management of such sick tea

units immediately before such vesting shall be bound to deliver to the

Tea Trading Corporation all assets, books of account, registers and

all other documents in their custody relating to such sick tea units.



(2) The Central Government may issue such directions as it may

deem desirable in the circumstances of the case to the Tea Trading

Corporation and the said Corporation may also, if it is considered

necessary so to do, apply to the Central Government at any time for

instructions as to the manner in which the management of the sick tea

units of the tea companies shall be conducted or in relation to any

other matter arising in the course of such management.


10.
Duty of persons to account for assets, etc., in their possession.


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

possession. (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 any sick tea unit owned by a tea company which has

vested in the Tea Trading Corporation under this Act shall be liable

to account for the said assets, books, documents and other papers to

the Tea Trading Corporation and shall deliver them up to that

Corporation or to such person or persons as that Corporation may

specify in this behalf.



(2) The Tea Trading Corporation may take or cause to be taken all

necessary steps for securing possession of the sick tea units of the

tea companies which have vested in that Corporation under this Act.



(3) Every tea company shall, within such period as the Tea

Trading Corporation may allow in this behalf, furnish to that

Corporation a complete inventory of all property and assets, as on the

appointed day pertaining to its sick tea unit, which have vested in

that Corporation under sub-section (2) of section 3, and for this

purpose, the Corporation shall afford to such company all reasonable

facilities.


CHAP
PROVISIONS RELATING TO EMPLOYEES OF THE TEA COMPANIES


CHAPTER V



PROVISIONS RELATING TO EMPLOYEES OF THE TEA COMPANIES


11.
Continuance of employees.


11. Continuance of employees. (1) Every person who has been,

immediately before the appointed day, employed in any sick tea unit of

any of the tea companies shall become, on and from the appointed day,

an employee of the Tea Trading Corporation and shall hold office or

service under that Corporation, 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 that Corporation is duly

terminated or until his remuneration and other conditions of service

are duly altered by that Corporation.



(2) Notwithstanding anything contained in the Industrial Disputes

Act, 1947 (14 of 1947). or in any other law for the time being in

force, the transfer of the services of any officer or other person

employed in any sick tea unit of any tea company, to the Tea Trading

Corporation, shall not entitle such officer or other employee to any

compensation under this Act or any other law for the time being in

force and no such claim shall be entertained by any court, tribunal or

other authority.



196


12.
Provident fund and other funds.


12. Provident fund and other funds. (1) Where a tea company has

established a provident fund, superannuation fund, welfare fund or

other funds for the benefit of persons employed in a sick tea unit

owned by it, the monies relatable to its employees whose services have

become transferred by or under this Act to the Tea Trading Corporation

shall, out of the monies standing, on the appointed day, to the credit

of such provident fund, superannuation fund, welfare fund or other

funds, stand transferred to, and vest in, the Tea Trading Corporation.



(2) The monies which stand transferred under sub-section (1) to

the Tea Trading Corporation, shall be dealt with by that Corporation

in such manner as may be prescribed.


CHAP
COMMISSIONER OF PAYMENTS


CHAPTER VI



COMMISSIONER OF PAYMENTS


13.
Appointment of Commissioner of Payments.


13. Appointment of Commissioner of Payments. (1) The Central

Government shall, for the purpose of disbursing the amounts payable

under sections 6 and 7 to the tea companies, by notification, appoint

a Commissioner of Payments.



(2) The Central Government may appoint such other persons as it

may think fit to assist the Commissioner and thereupon the

Commissioner may authorise one or more of such persons also to

exercise all or any of the powers exercisable by him under this Act

and different persons may be authorised to exercise different powers.



(3) Any person authorised by the Commissioner to exercise any 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 India.


14.
Payment by the Central Government to the Commissioner.


14. Payment by the Central Government to the Commissioner. (1)

The Central Government shall, within thirty days from the specified

date, pay in cash to the Commissioner, for payment to every tea

company,--



(a) an amount equal to the amounts or amount specified

against the name of that company in column (4) of the First

Schedule; and



(b) a further amount equal to the amounts or amount

specified against the name of that company in column (5) of the

First Schedule.



(2) A deposit account shall be opened by the Central Government

in favour of the Commissioner in the Public Account of India, and

every amount paid under this Act to the Commissioner shall be

deposited by him to the credit of the said deposit account and the

said deposit account shall be operated by the Commissioner.



197



(3) Separate records shall be maintained by the Commissioner in

respect of each of the tea companies in relation to which payment has

been made to him under this Act.



(4) Interest accruing on the amount in relation to a tea company

standing to the credit of the deposit account referred to in sub-

section (2) shall enure to the benefit of such tea company.


15.
Certain powers of the Tea Trading Corporation.


15. Certain powers of the Tea Trading Corporation. (1) The Tea

Trading Corporation shall be entitled to receive, up to the specified

date, to the exclusion of all other persons, any money due to any tea

company in relation to its sick tea unit which has vested in the

Corporation under sub-section (2) of section 3, and realised after the

appointed day, notwithstanding that the realisation pertains to a

period prior to the appointed day.



(2) The Tea Trading Corporation may make a claim to the

Commissioner with regard to every payment made by that Corporation,

after the appointed day, for discharging any liability of a tea

company, not being any liability specified in sub-section (1) of

section 24, in relation to any sick tea unit owned by it in respect of

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 Tea Trading Corporation.



(3) Save as otherwise provided in this Act, the liabilities of a

tea company in relation to any sick tea unit owned by it 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 that company.


16.
Claims to be made to the Commissioner.


16. Claims to be made to the Commissioner. [(1)] 1* Every person

having a claim against a tea company with regard to any of the matters

specified in the Second Schedule, pertaining to any sick tea unit

owned by it, 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.



2*[(2) Notwithstanding anything contained in sub-section (1),

all the claims preferred before the Commissioner after the period or

the further period specified in that sub-section but on or before the

27th day of July, 1989, shall be deemed to have been validly

preferred.]


17.
Priority of claims.


17. Priority of claims. The claims made under section 16 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, and so on;



(b) the claims specified in each of the categories shall

rank equally and be paid in full, but if the amount paid to the

Commissioner under this Act 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.

---------------------------------------------------------------------

1. Re-numbered by Act 56 of 1991, S. 2

2. Ins. by s. 2 ibid.



198


18.
Examination of claims.


18. Examination of claims. (1) On receipt of the claims made

under section 16, the Commissioner shall arrange the claims in the

order of priorities specified in the Second Schedule and examine the

same in accordance with such order.



(2) If on an examination of the claims against a tea company, the

Commissioner is of the opinion that the amount paid to him under this

Act for payment to such company is not sufficient to meet the

liabilities specified in any lower category, he shall not be required

to examine any claim in respect of such lower category.


19.
Admission or rejection of claims.


19. Admission or rejection of claims. (1) After examining the

claims against a tea company, with reference to the priorities set out

in the Second Schedule, the Commissioner shall fix a date on or before

which every claimant against the tea company shall file the proof of

his claim.



(2) Not less than fourteen days' notice of the date so fixed

shall be given by advertisement in one issue of any daily newspaper in

the English language having circulation in the major parts of the

country and one issue of any daily newspaper in such 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 tea company concerned

an opportunity of refuting the claim and after giving the claimant a

reasonable opportunity of being heard, by order in writing, admit or

reject the claim in whole or in part.



(5) The Commissioner shall have the power to regulate his own

procedure in all matters arising out of the discharge of his

functions, including the place or places at which he may hold his

sittings and shall, for the purpose of making any investigation under

this Act, have the same powers as are vested in a Civil Court under

the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit in

respect of the following matters, namely:--



(a) the summoning and enforcing the attendance of any

witness and examining him on oath;



(b) the discovery and production of any document or other

material object producible as evidence;



(c) the reception of evidence on affidavit;



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

witnesses.



(6) Any investigation before the Commissioner shall be deemed to

be a judicial proceeding within the meaning of sections 193 and 228 of

the Indian Penal Code (45 of 1860), and the Commissioner shall be

deemed to be a Civil Court for the purposes of section 195 and

Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).



199



(7) A claimant who is dissatisfied with the decision of the

Commissioner may prefer an appeal against such decision to the High

Court within the local limits of whose jurisdiction the registered

office of the tea company concerned is situated and every such appeal

shall be heard and disposed of by not less than two Judges of that

High Court.


20.
Disbursement of money by the Commissioner.


20. Disbursement of money by the Commissioner. After admitting a

claim against a tea company 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 such tea company in respect of such claim shall stand discharged.


21.
Disbursement of amounts to the tea companies.


21. Disbursement of amounts to the tea companies. (1) If out of

the monies paid to him in relation to a tea company, there is a

balance left after meeting the liabilities as specified in the Second

Schedule, the Commissioner shall disburse such balance to such tea

company.



(2) Where the possession of any machinery, equipment or other

property possessed by a tea company has vested in the Tea Trading

Corporation under this Act but such machinery, equipment or other

property does not belong to such tea company, it shall be lawful for

that Corporation to continue to possess such machinery or equipment or

other property on the same terms and conditions under which they were

possessed by such tea company immediately before the appointed day.


22.
Undisbursed or unclaimed amounts to be deposited with the generalrevenue

account.


22. Undisbursed or unclaimed amounts to be deposited with the

general revenue account. 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 Central Government,

but a claim to any money so transferred may be preferred to the

Central Government by the person entitled to such payment and shall be

dealt with as if such transfer had not been made, and the order, if

any, for payment of the claim being treated as an order for the refund

of revenue.


CHAP
MISCELLANEOUS


CHAPTER VII



MISCELLANEOUS


23.
Act to have overriding effect.


23. Act to have overriding effect. 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.


24.
Assumption of liability.


24. Assumption of liability. (1) Where any liability of a tea

company arising out of any item specified in Category I of the Second

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 Central Government the extent of the liability which

remains undischarged and that liability shall be assumed by the

Central Government.



(2) The Central Government may, by order, direct the Tea Trading

Corporation to take over the liability assumed by the Central

Government under sub-section (1), and on receipt of such direction, it

shall be the duty of that Corporation to discharge such liability.



200


25.
Management to continue to vest in certain persons until

alternativearrangements have been made.


25. Management to continue to vest in certain persons until

alternative arrangements have been made. Notwithstanding the vesting

under this Act of a sick tea unit of any tea company in the Tea

Trading Corporation--



(a) any person who has been managing the affairs of such

sick tea unit before the date on which that unit had so vested

shall, until alternative arrangements have been made by the Tea

Trading Corporation for the management of such unit, continue to

manage the affairs of the unit, as if such person had been

authorised by the Tea Trading Corporation, to manage such unit;



(b) such person shall, until alternative arrangements have

been made by the Tea Trading Corporation, continue to be

authorised to operate, in relation to the sick tea unit of such

tea company, any account of such unit in any bank as if he had

been authorised by the Tea Trading Corporation to operate such

account.


26.
contracts to cease to have effect unless ratified by the Tea

TradingCorporation.


26. contracts to cease to have effect unless ratified by the Tea

Trading Corporation. Every contract entered into by any tea company in

relation to any sick tea unit owned by it which has vested in the Tea

Trading Corporation under sub-section (2) of section 3, for any

service, sale or supply and in force immediately before the appointed

day, shall, on and from the expiry of a period 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 Tea Trading Corporation, and in ratifying such contract, the Tea

Trading Corporation may make such alterations or modifications therein

as it may think fit:



Provided that the Tea Trading Corporation 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 Tea Trading Corporation; 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.


27.
Penalties.


27. Penalties. Any person who,--



(a) having in his possession, custody or control any

property forming part of a sick tea unit owned by any tea company

wrongfully withholds such property from the Tea Trading

Corporation; or



(b) wrongfully obtains possession of, or retains any

property forming part of, a sick tea unit owned by any tea

company; or



(c) wilfully withholds or fails to furnish to the Tea

Trading Corporation or any person or body of persons specified by

that Corporation, any document or inventory relating to a sick

tea unit owned by any tea company, which may be in his

possession, custody or control; or



201



(d) fails to deliver to the Tea Trading Corporation or any

person or body of persons specified by that Corporation, any

assets, books of account, registers or other documents in his

possession, custody or control relating to a sick tea unit owned

by any tea company; or



(e) wrongfully removes or destroys any property forming part

of a sick tea unit owned by any tea company or prefers any claim

under this Act which he knows or has reason to believe to be

false or grossly inaccurate, shall be punishable with

imprisonment for a term which may extend to two years and also

with fine which may extend to ten thousand rupees.


28.
Offences by companies.


28. Offences by companies. (1) Where an offence punishable under

this Act has been committed by a company, every person who, at the

time the offence was committed, was in charge of, and was responsible

to, the company for the conduct of the business of the company, as

well as the company, shall be deemed to be guilty of the offence and

shall be liable to be proceeded against and punished accordingly:



Provided that nothing contained in this sub-section shall render

any such person liable to any punishment, if he proves that the

offence was committed without his knowledge or that he had exercised

all due diligence to prevent the commission of such offence.



(2) Notwithstanding anything contained in sub-section (1), where

any offence under this Act has been committed by a company and it is

proved that the offence has been committed with the consent or

connivance of, or is attributable to any neglect on the part of, any

director, manager, secretary or other officer 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.


29.
Protection of action taken in good faith.


29. Protection of action taken in good faith. (1) No suit,

prosecution or other legal proceeding shall lie against the Central

Government or any officer of that Government or the Tea Trading

Corporation or other person authorised by that Government or

Corporation 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

Central Government or any of its officers or other employees or the

Tea Trading Corporation or any officer or other person authorised by

that Corporation for any damage caused or likely to be caused for

anything which is in good faith done or intended to be done under this

Act.



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30.
Tea companies not to be wound up by the court.


30. Tea companies not to be wound up by the court. No proceeding

for the winding up of a tea company, the right, title and interest in

relation to a sick tea unit owned by which have vested in the Tea

Trading Corporation under this Act or for the appointment of a

receiver in respect of the business of the sick tea unit shall lie or

be proceeded with in any court except with the consent of the Central

Government.


31.
Delegation of powers.


31. Delegation of powers. (1) The Central Government may, by

notification, direct that all or any of the powers exercisable by it

under this Act, other than the powers conferred by this section and

section 32 and 33, 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 Central Government.


32.
Power to make rules.


32. Power to make rules. (1) The Central Government may, by

notification, make rules for carrying out the provisions of this Act.



(2) In particular, and without prejudice to the generality of the

foregoing power, such rules may provide for all or any of the

following matters, namely:--



(a) the time within which, and the manner in which, an

intimation referred to in sub-section (3) of section 4 shall be

given;



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

other fund, referred to in sub-section (2) of section 12, shall

be dealt with;



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

prescribed.



(3) Every rule made by the Central Government under this Act

shall be laid, as soon as may be after it is made, before each House

of Parliament, while it is in session, for a total period of thirty

days which may be comprised in one session or in two or more

successive sessions, and if, before the expiry of the session

immediately following the session or the successive sessions

aforesaid, both Houses agree in making any modification in the rule or

both Houses agree that the rule should not be made, the rule shall

thereafter have effect only in such modified form or be of no effect,

as the case may be; so, however, that any such modification or

annulment shall be without prejudice to the validity of anything

previously done under that rule.


33.
Power to remove difficulties.


33. Power to remove difficulties. If any difficulty arises in

giving effect to the provisions of this Act, the Central Government

may, by order, not inconsistent with the provisions of this Act,

remove the difficulty:



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

period of two years from the appointed day.


34.
Repeal and saving.


34. Repeal and saving. (1) The Tea Companies (Acquisition and

Transfer of Sick Tea Units) Ordinance, 1985 (3 of 1985), is hereby

repealed.



(2) Notwithstanding such repeal, anything done or any action

taken under the said Ordinance shall be deemed to have been done or

taken under the corresponding provisions of this Act.



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