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THE TEA COMPANIES (ACQUISITION AND TRANSFER OF SICK TEA UNITS) ACT,1985

Title : THE TEA COMPANIES (ACQUISITION AND TRANSFER OF SICK TEA UNITS) ACT,1985

Year : 1985



The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law, other than this Act, or in any decree or order of any court, tribunal or other authority.



(1) Where any liability of a tea company arising out of any item specified in Category I of the Second Schedule is not discharged fully by the Commissioner out of the amounts paid to him under this Act, the Commissioner shall intimate in writing to the Central Government the extent of the liability which remains undischarged and that liability shall be assumed by the Central Government.
 
(2) The Central Government may, by order, direct the Tea Trading Corporation to take over the liability assumed by the Central Government under sub-section (1), and on receipt of such direction, it shall be the duty of that Corporation to discharge such liability.



Notwithstanding the vesting under this Act of a sick tea unit of any tea company in the Tea Trading Corporation-

(a) Any person who has been managing the affairs of such sick tea unit before the date on which that unit had so vested shall, until alternative arrangements have been made by the Tea Trading Corporation for the management of such unit, continue to manage the affairs of the unit , as it such person had been authorised by the Tea Trading Corporation, to manage such unit;

(b) Such person shall, until alternative arrangements have been made by the Tea Trading Corporation, continue to be authorised to operate, in relation to the sick tea unit of such tea company, any account of such unit in any bank as if he had been authorised by the Tea Trading Corporation to operate such account.



Every contract entered into by any tea company in relation to any sick tea unit owned by it which has vested in the Tea Trading Corporation under sub-section (2) of section 3, for any service, sale or supply and in force immediately before the appointed day, shall, on and from the expiry of a period of one hundred and eighty days from the appointed day, cease to have effect unless such contract is, before the expiry of that period, ratified in writing by the Tea Trading Corporation, and in ratifying such contract, the Tea Trading Corporation may make such alterations or modifications therein as it may think fit:

Provided that the Tea Trading Corporation shall not omit to ratify a contract and shall not make any alteration or modification in a contract-

(a) Unless it is satisfied that such contract is unduly onerous or has been entered into in bad faith or is detrimental to the interests of the Tea Trading Corporation ; and

(b) Except after giving the parties to the contract a reasonable opportunity of being heard and except after recording in writing its reasons for refusal to ratify the contract or for making any alteration or modification therein.



Any person who,-

(a) Having in his possession, custody or control any property forming part of a sick tea unit owned by any tea company wrongfully withholds such property from the Tea Trading Corporation; or

(b) Wrongfully obtains possession of, or retains any property forming part of, a sick tea unit owned by any tea company; or
 
(c) Willfully withholds or fails to furnish to the Tea Trading Corporation or any person or body of persons specified by that Corporation, any document or inventory relating to a sick tea unit owned by any tea company, which may be in his possession, custody or control; or.

(d) Fails to deliver to the Tea Trading Corporation or any person or body of persons specified by that Corporation, any assets, books of account, registers or other documents in his possession, custody or control relating to a sick tea unit owned by any tea company; or

(e) Wrongfully removes or destroys any property forming part of a sick tea unit owned by any tea company or prefers any claim under this Act which he knows or had reason to believe to be false or grossly inaccurate, shall be punishable with imprisonment for a term which may extend to two years and also with fine which may extend to ten thousand rupees.



(1) Where an offence punishable under this Act has been committed by a company, every person who. At the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall liable to be proceeded against and punished accordingly :

Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where any offence under this act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.-For the purposes of this section-

(a) "Company" means any body corporate and includes a firm or other association of individuals; and

(b) "Director", in relation to a firm, means a partner in the firm.



(1) No suit, prosecution or other legal proceeding shall lie against the Central Government or any Officer of that Government or the Tea Trading Corporation or other person authorised by that Government or Corporation for anything which is in good faith done or intended to be done under this Act.

(2) No suit or other legal proceeding shall lie against the Central Government or any of its officers or other employees or the Tea Trading Corporation or any officer or other person authorised by that Corporation for any damage caused or likely to be caused for anything which is in good faith done or intended to be done under this Act.



No proceeding for the winding up of a tea company, the right, title and interest in relation to a sick tea unit owned by which have vested in the Tea Trading Corporation under this Act or for the appointment of a receiver in respect of the business of the sick tea unit shall lie or be proceeded with in any court except with the consent of the Central Government.



(1) The Central Government may, by notification ,direct that all or any of the powers exercisable by it under this Act, other than the powers conferred by this section and sections 32 and 33,. May also be exercised by such person or persons as may be specified in the notification.

(2) Whenever any delegation of power is made under sub-section (1), the person to whom such power has been delegated shall act under the direction, control and supervision of the Central Government.



(1) The Central Government may, by notification , make rules for carrying out the provisions of this Act.
 
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-

(a) The time within which, and the manner in which, an intimation referred to in sub-section (3) of section 4 shall be given.

(b) The manner in which the monies in any provident fund or other fund,referred to in sub-section (2) of section 12,shall be dealt with;

(c) Any other matter which is required to be, or may be, prescribed.
 
(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be ; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule. Houses agree that the rule should no House.



If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the difficulty:

Provided that no such order shall be made after the expiry of a period of two years from the appointed day.



(1) The Tea Companies (Acquisition and Transfer of Sick Tea Units) Ordinance, 1985, (3 of 1985) is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act.

THE FIRST SCHEDULE

[See sections 2(e) and (g), 6, 7 and 14(1)]

S.No.   
Name of the sick tea unit  Name of the tea company Amount (Rupees in lakhs)
Further amount (Rupees)
1.Pashok Tea EstateMessrs Pashok Tea Company Limited, 10, Pollock Street, Calcutta26.03 
7,640
2.
Looksan Tea Estate
Messrs Pashok Tea Company Limited, 10, Pollock Street, Calcutta
100.15 
9,340
3.
Vah-Tukvar Tea Estate
Messrs Sashi Tara Tea Company Private Limited, Darjeeling25.82
4,940
4.
Potong Tea EstateMessrs Moon Moon Tea Company (Private) Limited, 5, Clive Row, Calcutta
16.35
3,460
         
THE SECOND SCHEDULE
[See sections 16, 18(1), 19(1), 21(1) and 24(1)]

ORDER OF PRIORITIES

Category I-

Employees' dues on account of unpaid salaries, wages, provident fund, Employees' State Insurance contribution or premium relating to the Life Insurance Corporation of India and any other amounts due to employees in respect of any period whether before or after the management of the sick tea units had been taken over by the Central Government.

Category II -

Land revenue, taxes, cesses, rural employment cess, electricity duty, or other dues to the State Government and Local Authorities in respect of any period whether before or after the management of the sick tea units had been taken over by the Central Government.
 
Category III -

Loans and other financial accommodation, together with interest, provided by the Central Government as well as similar accommodation provided by commercial banks and public financial institutions during any period after management of the sick tea units had been taken over by the Central Government.

Category IV-

Revenue, taxes, cesses, rates or other dues to the Central Government, in respect of any period whether before or after the management of the sick tea units had been taken over by the Central Government.

Category V-

Secured loans obtained by any tea company for the purposes of its sick tea unit from nationalised banks, Tea Board constituted under the Tea Act, 1953, 29 of 1953, and public financial institutions during any period before the management of that sick tea unit had been taken over by the Central Government.

Category VI-

Any other credit availed of by any tea company for trade or manufacturing purposes with respect to its sick tea unit, during any period before the management of that sick tea unit had been taken over by the Central Government.
Last updated on October, 2016

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