8. Payment of amount to owners of sick textile undertakings.—The owner of every sick textile
undertaking shall be given by the Central Government, in cash and in the manner specified in Chapter VI,
for the transfer to, and vesting in, it, under sub-section (1) of section 3, of such sick textile undertaking
and the right, title and interest of the owner in relation to such sick textile undertaking, an amount equal to
the amount specified against it in the corresponding entry in column (4) of the First Schedule.
9. Payment of further amount.—(1) In consideration of the retrospective operation of the provisions
of sections 3, 4 and 5, there shall be given, in cash, by the Central Government, to the owner of every sick
textile undertaking, the management of which was taken over by the Central Government, an amount
equal to an amount calculated at the rate specified in section 6 of the Sick Textile Undertakings (Taking
Over of Management) Act, 1972 (72 of 1972), for the period commencing on the appointed day and
ending on the date on which the Ordinance was promulgated.
(2) In addition to the amount referred to in section 8, there shall be given by the Central Government,
in cash, to the owner of every sick textile undertaking, simple interest at the rate of four per cent. per
annum on the amount specified against such owner in the corresponding entry in column (4) of the First
Schedule for the period commencing on the date on which the Ordinance was promulgated, and ending on
the date on which payment of such amount is made by the Central Government to the Commissioner.
(3) The amount representing interest calculated at the rate specified in sub-section (2) shall be given
in addition to the amount specified in the First Schedule.
10. Accounts to be rendered by the owners of sick textile undertakings.—(1) Where in pursuance
of any decree, order or injunction of a court or otherwise, the Central Government or the Custodian was
prevented from taking over the management of any sick textile undertaking, the owner of such sick textile
undertaking shall,—
(a) in the case of an undertaking the management of which was subsequently taken over by the
Central Government at any time before the date on which the Ordinance was promulgated, within
sixty days from such date; or
(b) in the case of any other sick textile undertaking, the management of which could not be taken
over by the Central Government before the date on which the Ordinance was promulgated, within
sixty days from such date,
render accounts in relation to the period commencing on the date of the notified order under the Industries
(Development and Regulation) Act, 1951 (5 of 1951), or, as the case may be, on the date of
commencement of the Sick Textile Undertakings (Taking Over of Management) Act, 1972 (72 of 1972),
and ending on the date on which the management of the sick textile undertaking was taken over by the
Central Government or the Custodian, as the case may be, with regard to the—
(i) assets and stores of the sick textile undertaking acquired or sold during the said period;
(ii) textile sold or despatched during the said period; and
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(iii) income derived by the owner from the sick textile undertaking during the said period.
(2) If on examination of the accounts referred to in sub-section (1), any income is found to have been
derived by the owner from the sick textile undertaking during the period referred to in that sub-section,
such income shall be recoverable by the Central Government from the amount payable under section 8 to
the owner of such sick textile undertaking and the debt due to the Central Government on this account
shall rank as an unsecured debt.
(3) If no account is rendered by the owner of a sick textile undertaking within the period referred to in
sub-section (1) or if the Central Government has any reason to believe that the account rendered by such
owner is incorrect or false in material particulars, the Central Government may refer the matter to the
Commissioner and thereupon the Commissioner shall determine the income derived by the owner from
the sick textile undertaking during the period referred to in sub-section (1), and take steps to recover the
said income from the amount payable to the owner of the sick textile undertaking under section 8, as if the
debt due to the Central Government on this account were an unsecured debt.
(4) No mortgage, charge, lien or other incumbrance in relation to a sick textile undertaking or any
asset thereof shall be binding on the Central Government or the National Textile Corporation if such
mortgage, charge, lien or other incumbrance was created, at any time during the period in which the
Central Government or the Custodian was prevented, by any decree, order or injunction of a court or
otherwise, from taking over the management of the said sick textile undertaking.