Section 12
Continuance of employees of the textile undertakings.
The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act, 1986
About this Act
An Act to provide for the acquisition and transfer of certain textile undertakings of the Swadeshi Cotton Mills Company Limited, with a view to securing the proper management of such undertakings so as to subserve the interests of the general public by ensuring the continued manufacture, production and distribution of different varieties of cloth and yarn and thereby to give effect to the policy of the State towards securing the principles specified in clauses (b) and (c) of article 39 of the Constitution and for matters connected therewith or incidental thereto.
(1) Every person who has been,
immediately before the appointed day, employed by the Company in relation to a textile undertaking,
shall become, on and from the appointed day, an employee of the National Textile Corporation and shall
hold office or service in that Corporation with the same rights and privileges as to pension, gratuity and
other like matters as would have been admissible to him if the rights in relation to such textile undertaking
had not been transferred to, and vested in, the National Textile Corporation, and shall continue to do so
unless and until his employment in that Corporation is duly terminated or until his remuneration, terms
and conditions of employment are duly altered by that Corporation.
(2) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1974), or in any other law for the time being in force, the transfer of the services of any officer or other person employed in a textile undertaking to the National Textile Corporation shall not entitle such officer or other employee to any compensation under this Act or any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority.
(2) Notwithstanding anything contained in the Industrial Disputes Act, 1947 (14 of 1974), or in any other law for the time being in force, the transfer of the services of any officer or other person employed in a textile undertaking to the National Textile Corporation shall not entitle such officer or other employee to any compensation under this Act or any other law for the time being in force and no such claim shall be entertained by any court, tribunal or other authority.