National Textiles Corpn. (S.M.) Ltd. vs Girdharisingh Pratapsingh & Others on 24 July, 1997
9. Again in National Textile Corporation (South Maharashtra) Ltd. v. Bhagirathi
Gopal Martal & others, the Division Bench of this Court reiterated legal position that
the liability incurred prior to the taking over is enforceable against the erstwhile
company and cannot be fastened on N.T.C. In Bhagirathi Gopal Martal, the question
involved before the Division Bench related to liability to pay gratuity to workmen which
arose before taking over of the undertaking and the Division Bench with reference to
section 3(7) of the Act of 1983 held thus: