Section 6(2) in Karnataka Co-Operative Textile Mills (Acquisition and Transfer) Act, 1986
(2)Any liability arising in respect of,-(a)loans taken by the present management (together with interest thereon);(b)wages, salaries and other dues of employees of the mills in respect of any period after the management of the mills had been taken over by the Government;shall on and from the appointed day, be the liability of the Government and shall, on and from the date of vesting under section 8 in the Company, be the liability of the Company and shall be discharged by the Company 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.
