Amendment status not verified — confirm the current text below against the official source.
State Textile Corpo'atioh tç' form subsidiary corporations.—.( 1) The State Textile Corporation may, if it considers riecessaty to do so, fórin subsidiary coiporationa under the Companies Act, 1956 (Central Act 1 of 1956)1 and register them under that Act. - (2) The State Textile Corporation may, by order in writing, transfhr the, sick textile undertaking or part thereof to a subsidiary texti1e corporation and any such transfer shall be subject to such teçms and conditions as may be specified in the said order. (3). The SubsIdiary Textile Corporation shall, -on and from the date of such transfer, be deemed to be substituted in the licence or other .instrument referred to in sib-sectiop (3) of section- 4 in place of the State Textile Corporation as if such licence or other instrument Iiad beet granted to the Subsidiary Textile Corporation, and shall hold such licence or other instruthent for the' remainder of the perid for wlich the State Tçxtile Corporation would have held such licence or other instrümçnt. 4593800/2020/IND(OS) 24 I H c tD &} 31 000030 (4) On the itransfer to a Subsidiary Textile Corporation :Of the sick textile underaki b r. y eef the' ities required to be discharged, by the State Tectile Corporation under 'hub-section (2) of section 5 shall in so far as they relate to the sick textile undertaking or part thereof so transferred to ...the-,Subsidiary. Textle Corporatui, be discharged, on and from the date of such .ransfer, by. the Subkidiary Textile Corporation as and when any such liability is required to be discharged - (5) Save as1 otherwise expressly provided inthis Act, references in this Act to the State Textile Corporation shall in respect ofthe sick textile <undertaking or any part thereof which is transferred to a Subsidiary Textile b-Corporation be codstrued as references to the Subsidiary Textile Cojporation I •--- 7 Shares to:, , e issued by the Slate Textile Corporation for the value of the assets transferrJd to it by- Statee Government —(1) An amount equal to the value of the assets of the sick textile undertaking transferred to and vested in the State Textile qorporation under sub-section (2) of. section 3 shall be deemedto be the cbntribution made by the State Government to the equity r- capital of the State l'extile Corporation and for the contribution so made, the State Textile Cor9oration shall issue (if necessary after amending its mernorandum and articles of association) to the State Government paid up FWshares in its equity fcapitai having a face value equal to the amount specified against the sick textie undertaking in the corresponding entry in column (3) of *the First,Sch6dule. (2)1.. Where any liability.is assumed by the State Government under b section (1) of selition 25 they may call upon the State -Textile Corporation to issi.re (if neces ry after amending the memorandum ahd articlest of association of theCorporation) to the State Government additional paid up 3shares in its equ1tycap1tai having a face value equal to the amount of the liability assumed by the State Go'emment under the said sub section CHAPTER III PAYMENT OF AMOUNT - - - 0, 0 • 0 0 ; 0 8 Payment o amount to owners of the sick textile undertaking — (l) The owner of the sick textile urrdertaking shall rnn be given by the State iCove-ent in cash and in the manner specified in Chapter \VI for the transfer sand vesting in itunder sub-section (1) of section 3 of such sick textile undertaking and the right title and interest of the owner in relation to this sick frtextile undertaking, aji amount equal to the amount specffied against it in the correspondirg entry in column (3) of the First Schedule 4593800/2020/IND(OS) 25 .• 32 (2) In addItion to the amount referred to. in sub-section (t) there shall be given by the State Government, in cash, to the owner of the sick textile undertaking, simple interest at The rate of four per cent per aniium on the - - amount specified against such owner in the corresponding entry in column (3) of the First Schedi1e for the period comxnencig on the appointed day, and - ending on the date on whicli payment of such amount is made by the. State Government to the Commissioner, . - 9.' ?ayment offurther amount.---(l) On counto'f the taking over the. management orthe undertafdag, which has been -dectared as sick by the Bdard for Industrial arid Einancia1 Recntruction (BIFR), shall be given an amqit of rupees one thousan& per ansium on-the depriva.tioa of its nianagemant £or.a period comrnencing ftotxi the appointed, day iip to the dafe on which the - management of the sick undertakmj . has beei t&ken over by the State Government. . .., (2) Theamoirnttalculattd inaccordance with the p aLons of sub-sect öi '(11 shall carry simple inA at the rate of four per cent. per annum for theperiod commen9ing qn the appointed day and ending on the date - on which the payment of such ixrount is made by the State Government to the Ciuiimissioner. . • (3) The aniount determined in. relation tti this textile compaiiy -iii accordance with the proviions of sub-sections (1) and (2) shall be gwen by the State Goemment to the textile company, in addition to the amount spczfied in the First Schedilegainst that.cdmany; _CHAP-rER IV 'MANAGv1Eff ETC., OF' THE SICK TEXTILE UNPERTAKIN3