Section 5 in Kerala Spinners, Alappuzha (Acquisition and Transfer of Undertaking) Act, 2010
5. Owner to be liable for certain prior liabilities.
(1)Every liability other than the liability specified in sub-section (2), of the owner of the sick textile undertaking, in respect of any period prior to the appointed day shall be the liability of such owner and shall be enforceable against him and not against the State Government or the State Textile Corporation.(2)Any liability arising in respect of-(a)loans advanced by the Central Government or the State Government to the sick textile undertaking (together with interest due thereon) after it has been declared as a sick company by the Board for Industrial and Financial Reconstruction (BIFR);(b)amount advanced to the sick textile undertaking after it has been declared as a sick company by the Board for Industrial and Financial Reconstruction (BIFR) by the State Textile Corporation together with interest due thereon;(c)wages, salaries and other dues of employees of the sick textile undertaking, in respect of any period after the company has been declared as a sick company by the Board for Industrial and Financial Reconstruction (BIFR) shall on and from the appointed day, be the liability of the State Government and shall be discharged, for and on behalf of that Government, by the State Textile Corporation as and when repayment of such loans or amounts become due or as and when such wages, salaries or other dues become due and payable.(3)For the removal of doubts, it is hereby declared that-(a)save as otherwise expressly provided in this section or in any other section of this Act, no liability, other than the liability specified in sub-section (2), in relation to the sick textile undertaking in respect of any period prior to the appointed day, shall be enforceable against the State Government or the State Textile Corporation;(b)no award, decree or order of any court, tribunal or other authority in relation to this sick textile undertaking passed after the appointed day in respect of any matter, claim or dispute, in relation to any matter not referred to in sub-section (2) which arose before that day, shall be enforceable against the State Government or the State Textile Corporation;(c)no liability of the sick textile undertaking or any owner thereof for the contravention, before the Company has been declared as a sick company by the Board for Industrial and Financial Reconstruction (BIFR) of any provision of a law for the time being in force, shall be enforceable against the State Government or the State Textile Corporation.
