Section 11(1) in Anglo-French Textiles Limited (Acquisition and Transfer of Textile Undertaking) Act, 1986
(1)Where services of a person who is a workman within the meaning of the Industrial Disputes Act, 1947, and who has been immediately before the appointed day, employed in the textile undertaking, are in the opinion of the Corporation necessary having regard to the requirements of the units of the Corporation formed as a result of reorganization and 'reconstruction of the textile undertaking, he shall become, from the date of his appointment by the Corporation, an employee of the Corporation and shall hold office or service in the Corporation with the same rights and privileges as to pension, gratuity and Other matters as would have been admissible to hint if the rights in relation to such textile undertaking had not been transferred to, and vested in the Corporation, and continue to do so unless an until his employment in such Corporation is duly terminated or until his remuneration and terms and conditions of employment are duly altered by the Corporation:Provided that notwithstanding anything contained in the Payment of Wages Act, 1936 (Central Act 4 of 1936) and the Payment of Gratuity Act, 1972 (Central Act 39 of 1972) -(a)the Government or the Corporation shall not be liable to any person who has become an employee of the Corporation under this sub-section for payment of any gratuity or any arrears of wages for the period commencing from the day on which the textile undertaking in which he was employed was closed and ending on the day on which he becomes an employee of the Corporation, irrespective of whether such closure was in accordance with the provisions of the Industrial Disputes Act, 1947 (Central Act 14 of 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 this sub-section, shall not entitle such person to payment of any gratuity.
