Section 12(5) in The Central India Spinning, Weaving and Manufacturing Company Limited, The Empress Mills, Nagpur (Acquisition and Transfer of Undertaking) Act, 1986
(5)Where -(a)the services of any person employed before the appointed day in the undertaking are terminated-(i)under the terms of any contract or service or otherwise, or(ii)under sub-section (3), and(b)such person is entitled to any arrears of salary or wages or any payment for any leave not availed of or other payment not being payment by way of gratuity or compensation for retrenchment,such person may except to the extent such liability of payment has been discharged by the State Government or the Corporation under the proviso to section 7, enforce his claim against the proprietors of the undertaking but not against the State Government or the Corporation:Provided that, notwithstanding anything contained in the Industrial Disputes Act, 1947, the Payment of Wages Act, 1936 and the Payment of Gratuity Act, 1972-(a)the State Government or the Corporation shall not be liable,-(i)to any person who has become an employee of the Corporation under sub-section (1) for payment of gratuity or any arrears of wages, or(ii)to any person whose services stand terminated under sub-clause (i) of clause (a) of sub-section (3) for payment of gratuity or any arrears of wages or compensation for retrenchment or closure, for the period commencing from the date on which the undertaking was closed ending on the day on which such person becomes an employee of the Corpora or, as the case may be, on which his services stand terminated irrespective whether such closure was in accordance with the provisions of the Industrial Disputes Act, 1947 or not;(b)the termination of services of a person under sub-clause (ii) of clause (a) of sub-section (3) on his becoming an employee of the Corporation under sub-section (1) shall not entitle such person to payment of any gratuity.Explanation. - In this Chapter-(a)the expression "Corporation" includes "new Government company"; and(b)the expression "designated date" means such date as the State Government may, by notification in the Official Gazette designate.
