Declaration of Tamil Nadu Textile Corporation Limited, Coimbatore as Relief Undertaking for Certain Period
The Handlooms, Handicrafts, Textiles and Khadi Department, through G.O. (2D) No. 7 dated 24th February 2009, published the Governor of Tamil Nadu's declaration that Tamil Nadu Textile Corporation Limited, Coimbatore would be a relief undertaking for one year from publication. The notification also suspended specified contracts, assurances of property, agreements, assignments, rights, obligations and liabilities connected with the corporation, and modified how the Industrial Disputes Act, 1947 applied to it.
What the notification does
The Handlooms, Handicrafts, Textiles and Khadi Department, through G.O. (2D) No. 7 dated 24th February 2009, published two directions made by the Governor of Tamil Nadu concerning Tamil Nadu Textile Corporation Limited, Coimbatore. The corporation was declared a relief undertaking for one year from the date of publication, and specified instruments, rights, obligations and liabilities connected with it were suspended during the relevant period.
The declaration was made under Section 3 of the Tamil Nadu Relief Undertakings (Special Provisions) Act, 1969. The stated public interest purpose was to enable the continued running of the State Industrial Undertaking and to prevent, or provide relief against, unemployment.
Suspension of contracts and property instruments
The direction concerning Tamil Nadu Textile Corporation Limited, Coimbatore covers instruments that were in force immediately before the corporation became a relief undertaking. It applies where the corporation was a party to the instrument or the instrument was otherwise applicable to it.
The suspended items include:
- Contracts.
- Assurances of property.
- Agreements.
- Assignments.
- Standing orders.
- Other instruments in force.
- Rights, privileges, obligations and liabilities arising under those instruments before the declaration date.
The notification says these instruments and related rights and liabilities were suspended in operation from the date on which the corporation was declared a relief undertaking.
Employment law direction
The direction for Tamil Nadu Textile Corporation Limited, Coimbatore states that the Industrial Disputes Act, 1947 would apply with Chapter V-B and Section 33-C omitted.
Who may be affected
The notification may affect anyone whose rights or obligations arose under a contract, property assurance, agreement, assignment or other instrument involving Tamil Nadu Textile Corporation Limited, Coimbatore before the relief undertaking declaration took effect. This may include parties dealing with property connected to the corporation, as well as contractors, creditors, employees and other persons relying on existing instruments.
A property buyer or professional examining a transaction involving the corporation should identify whether any relevant assurance of property, assignment, agreement, right or liability was in force immediately before the declaration date and therefore fell within the suspension.
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Common questions
How long was Tamil Nadu Textile Corporation Limited declared a relief undertaking?
The declaration applied for one year from the date of publication of the notification.
Did the notification suspend property-related documents?
Yes. It suspended assurances of property, assignments, agreements and other applicable instruments in force immediately before the corporation became a relief undertaking.
Were rights and liabilities under existing contracts also suspended?
Yes. Rights, privileges, obligations and liabilities arising under the covered instruments before the declaration date were suspended from that date.
Why was the corporation declared a relief undertaking?
The Government stated that the declaration was needed in the public interest to support the continued running of the corporation and to prevent, or provide relief against, unemployment.
