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INDUSTRIES (DEVELOPMENT AND REGULATION) ACT, 1951

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S.1 Short title, extent and commencement

       ( 1 ) This Act may be called the In dustries (Development and Regulation) Act, 1951 .
       ( 2 ) It extends to the whole of India1[ *** ]
       ( 3 ) It shall come into force on such date2as the Central Government may, by notification in the Official Gazette, appoint.
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       1. The words "except the State of Jammu and Kashmir" omitted by Act 51 of 1961, section 2 (w.e.f. 15th February, 1962).
       2. Enforced w.e.f. 8th May, 1952, vide Notification No. S.R.O. 811, dated the 8th May, 1952; see Gazette of India, Extraordinary, pt. II Sec. 3, p. 539.
       Enforced in the State of Jammu and Kashmir, w.e.f. 15th February, 1962; vide Notification No. S.O. 458/IDRA/1/1/62,

S.2 Declaration as to expediency of control by the Union

It is hereby declared that it is expedient in the public interest that the Union should take under its control the industries specified in the First Schedule.


S.3 Definitions

       In this Act, unless the context otherwise requires,--
       (a) "Advisory Council" means the Central Advisory Council established under section 5;
       1 [(aa) "ancillary industrial undertaking" means an industrial undertaking which, in accordance with the proviso to sub-section (1) of section 11B and the requirements specified under that sub-section, is entitled to be regarded as an ancillary industrial undertaking for the purposes of this Act:]
       2 [3 (ab) "current assets" means bank balances and cash and includes such other assets or reserves as are expected to be realised in cash or sold or consumed within a period of not more than twelve months in the ordinary course of business, such as stock-in-trade, amounts due from sundry debtors for sale of goods and for services rendered, advance tax payments a

S.4 Saving [Repealed]

Rep. by the Industries (Development and Regulation) Amendment Act, 1953 (26 of 1953), Section 3 (w.e.f. 1st October, 1953).


S.5 Establishment and constitution of Central Advisory Council and its functions

       (1) For the purpose of advising it on matters concerning the development and regulation of scheduled industries, the Central Government may, by notified order, establish a Council to be called the Central Advisory Council.
       (2) The Advisory Council shall consist of a Chairman and such other members, not exceeding thirty in number, all of whom shall be appointed by the Central Government from among persons who are in its opinion capable of representing the interests of:
       (a) owners of industrial undertakings in scheduled industries ;
       (b) persons employed in industrial undertakings in scheduled industries ;
       (c) consumers of goods manufactured or produced by scheduled industries;
       (d) such other class of person

S.6 Establishment and constitution of Development Councils and their functions

       (1) The Central Government may, by notified order, establish for any scheduled industry or group of scheduled industries, a body of persons to be called a Development Council which shall consist of members who in the opinion of the Central Government are--
       (a) persons capable of representing the interests of owners of industrial undertakings in the scheduled industry or group of scheduled industries;
       (b) persons having special knowledge of matters relating to the technical or other aspects of the scheduled industry or group of scheduled industries ;
       (c) persons capable of representing the interests of persons employed in industrial undertakings in the scheduled industry or group of scheduled industries;
       (d) persons not belonging to any of the afores

S.7 Reports and accounts of Development Councils

       (1) A Development Council shall prepare and transmit to the Central Government and the Advisory Council, annually, a report setting out what has been done in the discharge of its functions during the financial year last completed.
       (2) The report shall include a statement of the accounts of the Development Council for that year, and shall be transmitted as soon as accounts therefor have been audited, together with a copy of any report made by the auditors on the accounts.
       (3) The statement of account shall be in such form as may be prescribed, being a form which shall conform to the best commercial standards, and the statement shall show the total of remuneration and allowances paid during the year to members and officers of the Council.
       (4) A copy of each such report of a Development Council,

S.8 Dissolution of Development Councils

       (1) The Central Government may, if it is satisfied that a Development Council should cease to continue in being, by notified order, dissolve that Development Council.
       (2) On the dissolution of a Development Council under sub-section (1), the assets of the Development Council, after its liabilities, if any, are met therefrom, shall vest in the Central Government for the purposes of this Act.


S.9 Imposition of cess on scheduled industries in certain cases

       (1) There may be levied and collected as a cess for the purposes of this Act on all goods manufactured or produced in any such scheduled industry as may be specified in this behalf by the Central Government by notified order a duly of excise at such rate as may be specified in the notified order, and different rates may be specified for different goods or different classes of goods:
       Provided that no such rate shall in any case exceed two annas per cent of the value of the goods.
       Explanation.-In this sub-section the expression "value" in relation to any goods shall be deemed to be the wholesale cash price for which such goods of the like kind and quality arc sold or arc capable of being sold for delivery at the place of manufacture and at the time of their removal therefrom, without any abatement or deduction whatever except trade discoun

S.10 Registration of existing industrial undertakings

       1[(1) The owner of every existing industrial undertaking, not being the Central Government, shall, within such period as the Central Government may, by notification in the Official Gazette, fix in this behalf with respect to industrial undertakings generally or with respect to any class of them, register the undertaking in the prescribed manner.]
       (2) The Central Government shall also cause to be registered in the same manner every existing industrial undertaking of which it is the owner.
       2[(3) Where an industrial undertaking is registered under this section, there shall be issued to the owner of the undertaking or the Central Government, as the case may be, a certificate of registration3[containing the productive capacity of the industrial undertaking and such other particulars as may be prescribed].]
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S.10(a) Revocation of registration in certain cases

       1[10A. Revocation of registration in certain cases
       If the Central Government is satisfied that the registration of any industrial undertaking has been obtained by misrepresentation as to an essential fact or that any industrial undertaking has ceased to be registrable under this Act by reason of any exemption granted under this Act becoming applicable thereto or that for any other reason the registration has become useless or ineffective and therefore requires to be revoked the Central Government may after giving an opportunity to the owner of the undertaking to be heard revoke the registration.]
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       1. Inserted by Act 26 of 1953, Section 6 (w.e.f. 1st October, 1953).


S.11 Licensing of new industrial undertakings

       (1) No person or authority other than the Central Government, shall, after the commencement of this Act, establish any new industrial undertaking, except under and in accordance with a licence issued in that behalf by the Central Government:
       Provided that a Government other than the Central Government may, with the previous permission of the Central Government, establish a new industrial undertaking.
       (2) A licence or permission under sub-section (1) may contain such conditions, including, in particular, conditions as to the location of the undertaking and the minimum standards in respect of size to be provided therein as the Central Government may deem fit to impose in accordance with the rules, if any, made under Section 30.


S.11(a) Licence for producing or manufacturing new articles

       1[11A. Licence for producing or manufacturing new articles
       The owner of an industrial undertaking not being the Central Government which is registered under Section 10 or in respect of which a licence or permission has been issued under Section 11 shall not produce or manufacture any new article unless--
       (a) in the case of an industrial undertaking registered under Section 10, he has obtained a licence for producing or manufacturing such new article ; and
       (b) in the case of an industrial undertaking in respect of which a licence or permission has been issued under Section 11, he has had the existing licence or permission amended in the prescribed manner.]
       ___________________________
       1. Inserted by Act 26

S.11(b) Power of Central Government to specify the requirements which shall be complied with by small scale industrial undertakings

       1 [11B.Power of Central Government to specify the requirements which shall be compliedwith by small scale industrial undertakings
       (1)The Central Government may, with a view to ascertaining which ancillary andsmall scale industrial undertakings need supportive measures, exemptions orother favourable treatment under this Act to enable them to maintain theirviability and strength so as to be effective in--
       (a)promoting in a harmonious manner the industrial economy of the country andeasing the problem of unemployment, and
       (b)securing that the ownership and control of the material resources of thecommunity are so distributed as best to subserve the common good,
       specify,having regard to the factors mentioned in sub-section (2), by notified order,the requi

S.12 Revocation and amendment of licences in certain cases

       (1) If the Central Government is satisfied, either on a reference made to it in this behalf or otherwise, that any person or authority, to whom or to which, a licence has been issued under Sec 11, has, without reasonable cause, failed to establish or to take effective steps to establish the new industrial undertaking in respect of which the licence has been issued within the time specified therefor or within such extended time as the Central Government may think fit to grant in any case, it may revoke the licence.
       (2) Subject to any rules that may be made in this behalf, the Central Government may also vary or amend any licence issued under Section 11 :
       Provided that no such power shall be exercised after effective steps have been taken to establish the new industrial undertaking in accordance with the licence issued in this behalf.
&

S.13 Further provision for licensing of industrial undertakings in special cases

       1[13. Further provision for licensing of industrial undertakings in special cases
       (1) No owner of an industrial undertaking, other than the Central Government, shall--
       (a) in the case of an industrial undertaking required to be registered under Section 10 but which has not been registered within the time fixed for the purpose under that section, carry on the business of that undertaking after the expiry of such period, or
       (h) in the case of an industrial undertaking the registration in respect of which has been revoked under Sec 10-A2[* * *,] carry on the business of the undertaking after the revocation, or
       (c) in the case of an industrial undertaking to which the provisions of this Act did not originally apply but became applicable after the commen

S.14 Procedure for the grant of licence or permission

       Before granting any licence or permission under1[Section 11, Section 11-A,2[Section 13, or Section 29-B]], the Central Government may require such officer or authority as it may appoint for the purpose, to make a full and complete investigation in respect of applications received in this behalf and report to it the result of such investigation and in making any such investigation, the officer or authority shall follow such procedure as may be prescribed.
       ___________________________
       1. Substituted by Act 26 of 1953, Section 10, for the words and figures "Section 11 or Section 13" (w.e.f. 1st October, 1953).
       2. Substituted by Act 71 of 1956, Section 3, for the words and figures "or Section 13" (w.e.f. 1st March, 1957).


S.15 Power to cause investigation to be made into scheduled industries or industrial undertakings

       Where the Central Government is of the opinion that--
       (a) in respect of any scheduled industry or industrial undertaking or undertakings--
       (i) there has been, or is likely to be, a substantial fall in the volume of production in respect of any article or class of articles relatable to that industry or manufactured or produced in the industrial undertaking or undertakings, as the case may be ; for which, having regard to the economic conditions prevailing, there is no justification ; or
       (ii) there has been, or is likely to be, a marked deterioration in the quality of any article or class of articles relatable to that industry or manufactured or produced in the industrial undertaking or undertakings, as the case may be, which could have been or can be avoided ; or
    &nbs

S.15(a) Power to investigate into the affairs of a company in liquidation

       1 [15-A. Power to investigate into the affairs of a company in liquidation
       (1) Where a company, owning an industrial undertaking, is being wound up by or under the supervision of the High Court, and the business of such company is not being continued, the Central Government may, if it is of opinion that it is necessary, in the interests of the general public and, in particular, in the interests of production, supply or distribution of articles or class of articles relatable to the concerned scheduled industry, to investigate into the possibility of running or re-starting the industrial undertaking, make an application to the High Court praying for permission to make, or cause to be made, an investigation into such possibility by such person or body of persons as that Government may appoint for the purpose.
       (2) Where an application is mad

S.16 Powers of Central Government on completion of investigation under Section 15

       (1) If after making or causing to be made any such investigation as is referred to in Section 15 the Central Government is satisfied that action under this section is desirable, it may issue such directions to the industrial undertaking or undertakings concerned as may be appropriate in the circumstances for all or any of the following purposes, namely:
       (a) regulating the production of any article or class of articles by the industrial undertaking or undertakings and fixing the standards of production ;
       (b) requiring the industrial undertaking or undertakings to take such steps as the Central Government may consider necessary to stimulate the development of the industry to which the undertaking or undertakings relates or relate ;
       (c) prohibiting the industrial undertaking or undertakings from

S.17 Special provisions for direct control by Central Government in certain cases [Repealed]

Rep. by the Industries (Development and Regulation) Amendment Act, 1953 (26 of 1953), Section 12 (w.e.f. 1st October, 1953).


S.18 Power of person or body of persons appointed under Section 15 to call for assistance in any investigation

       (1) The person or body of persons appointed to make any investigation under Section 151[or Section 15-A] may choose one or more persons possessing special knowledge of any matter relating to the investigation to assist him or it in holding the investigation.
       (2) The person or body of persons so appointed shall have all the powers of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of taking evidence on oath (which he or it is hereby empowered to administer) and of enforcing the attendance of witnesses and compelling the production of documents and material objects, and the person or body of persons shall be deemed to be a Civil Court for all the purposes of Section 195 and Chapter XXXV of the Code of Criminal Procedure, 1898 (5 of 1898).2
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S.18(a) Power of Central Government to assume management or control of an industrial undertaking in certain cases

       (1) If the Central Government is of opinion that--
       (a) an industrial undertaking to which directions have been issued in pursuance of Section 16 has failed to comply with such directions, or
       (b) an industrial undertaking in respect of which an investigation has been made under See. 15 (whether or not any directions have been issued to the undertaking in pursuance of Section 16), is being managed in a manner highly detrimental to the scheduled industry concerned or to public interest,
       the Central Government may, by notified order, authorise any person or body of persons to take over the management of the whole or any part of the undertaking or to exercise in respect of the whole or any part of the undertaking such functions of control as may be specified in the order.
    

S.18(a)(a) Power to take over industrial undertakings without investigation under certain circumstances

       1 [18AA. Power to take over industrial undertakings without investigation under certain circumstances
       (1) Without prejudice to any other provision of this Act, if, from the documentary or other evidence in its possession, the Central Government is satisfied, in relation to an industrial undertaking, that--
       (a) the persons in charge of such industrial undertaking have, by reckless investments or creation of incumbrances on the assets of the industrial undertaking, or by diversion of funds, brought about a situation which is likely to affect the production of articles manufactured or produced in the industrial undertaking, and that immediate action is necessary to prevent such a situation ; or
       (b) it has been closed for a period of not less than three months (whether by reason of the voluntary w

S.18(b) Effect of notified order under Section 18-A

       (1) On the issue of a notified order under Section 18-A authorizing the taking over of the management of an industrial undertaking,--
       (a) all persons in charge of the management, including persons holding office as managers or directors of the industrial undertaking immediately before the issue of the notified order, shall be deemed to have vacated their office as such;
       (b) any contract of management between the industrial undertaking and any managing agent or any director thereof holding office as such immediately before the issue of the notified order shall be deemed to have been terminated ;
       (c) the managing agent, if any appointed under Section 18-A, shall be deemed to have been duly appointed as the managing agent in pursuance of the Indian Companies Act, 1913 (7 of 1913)1, and the memora

S.18(c) Contracts in bad faith, etc., may be cancelled or varied

       Without prejudice to the provisions contained in Section 18-B, the person or body of persons authorized under Section 18-A to take over the management of an industrial undertaking may, with the previous approval of the Central Government, make an application to any Court having jurisdiction in this behalf for the purpose of cancelling or varying any contract or agreement entered into, at any time before the issue of the notified order under Section 18-A, between the industrial undertaking and any other person and the Court may, if satisfied after due inquiry that such contract or agreement had been entered into in bad faith and is, detrimental to the interests of the industrial undertaking, make an order cancelling or varying (either unconditionally or subject to such conditions as it may think fit to impose) that contract or agreement, and the contract or agreement shall have effect accordingly.
    &n

S.18(d) No right to compensation for termination of office or contract

       Notwithstanding anything contained in any law for the time being in force, no person who ceases to hold any office by reason of the provisions contained in Cl. (a) of Section 18-B, or whose contract of management is terminated by reason of the provisions contained in Cl. (b) of that section, shall be entitled to any compensation for the loss of office or for the premature termination of his contract of management :
       Provided that nothing contained in this section shall affect the right of any such person to recover from the industrial undertaking moneys recoverable otherwise than by way of such compensation.


S.18(e) Application of Act 7 of 1913

       (1) Where the management of an industrial undertaking, being a company as defined in the Indian Companies Act, 19131 is taken over by the Central Government, then, notwithstanding anything contained in the said Act or in the memorandum or articles of association of such undertaking,--
       (a) it shall not be lawful for the shareholders of such undertaking or any other person to nominate or appoint any person to be a director of the undertaking ;
       (b) no resolution passed at any meeting of the shareholders of such undertaking shall be given effect to unless approved by the Central Government;
       (c) no proceeding for the winding-up of such undertaking or for the appointment of a Receiver in respect thereof shall lie in any Court except with the consent of the Central Government.
   &n

S.18(f) Power of Central Government to cancel notified order under Section 18-A

If at any time it appears to the Central Government on the application of the owner of the industrial undertaking or otherwise that the purpose of the order made under Section 18-A has been fulfilled or that for any other reason it is not necessary that the order should remain in force, the Central Government may, by notified order, cancel such order and on the cancellation of any such order the management or the control, as the case may be, of the industrial undertaking shall vest in the owner of the undertaking.


S.18(f)(a) Power of Central Government to authorise, with the permission of the High Court, persons to take over management or control of industrial undertakings

       (1) If the Central Government is of opinion that there are possibilities of running or re-starting an industrial undertaking, in relation to which an investigation has been made under Section 15-A, and that such industrial undertaking should be run or re-started, as the case may be, for maintaining or increasing the production, supply or distribution of articles or class of articles relatable to the scheduled industry, needed by the general public, that Government may make an application to the High Court praying for permission to appoint any person or body of persons to take over the management of the industrial undertaking or to exercise in respect of the whole or any part of the industrial undertaking such functions of control as may be specified in the application.
       (2) Where an application is made under sub-section (1), the High Court shall make an order empowering the Central

S.18(f)(b) Power of Central Government to make certain declarations in relation to industrial undertakings, the management or control of which has been taken over under Section 18-A, Section 18-AA or Section 18-FA

       (1) The Central Government may, if it is satisfied, in relation to an industrial undertaking or any part thereof, the management or control of which has been taken over under Section 18-A, whether before or after the commencement of the Industries (Development and Regulation) Amendment Act, 1971 (72 of 1971) or under Section 18-AA or Section 18-FA, that it is necessary so to do in the interests of the general public with a view to preventing fall in the volume of production of any scheduled industry, it may, by notified order, declare that--
       (a) all or any of the enactments specified in the Third Schedule shall not apply or shall apply with such adaptations whether by way of modification, addition or omission (which does not, however, affect the policy of the said enactments) to such industrial undertaking, as may be specified in such notified order, or
    &

S.18(f)(c) Power of Central Government to call for report on the affairs and working of managed company

Where the management or control of an industrial undertaking has been taken over under Section 18-A, whether before or after the commencement of the Industries (Development and Regulation) Amendment Act, 1971 (72 of 1971), or under Section 18-AA or Section 18-FA, the Central Government may, at any time during the continuance of such management or control, call for a report from the authorised person on the affairs and working of the industrial undertaking and in submitting the report the authorised person shall take into account the inventory and the lists of members and creditors prepared under Section 18-FG.


S.18(f)(d) Decision of Central Government in relation to managed company

       (1) If, on receipt of the report submitted by the authorised person, the Central Government is satisfied,--
       (a) in relation to the company owning the industrial undertaking, which is not being wound up by the High Court, that the financial condition and other circumstances of the company are such that it is not in a position to meet its current liabilities out of its current assets, that Government may, if it considers necessary or expedient in the interests of the general public so to do, by order, decide that the industrial undertaking should be sold as a running concern as provided in Section 18-FE and proceedings should simultaneously be started for the winding-up, by the High Court, of the company ;
       (b) in relation to the company, owning the industrial undertaking, which is being wound up by the High Court, that its assets and liabi

S.18(f)(f) Provisions where Government decides to follow the course of action specified in Section 18-FD (1)

       (1) The provisions hereinafter laid down shall apply where the Central Government decides that the course of action specified in sub-section (1) of Section 18-FD should be followed, namely :
       (a) the decision of the Central Government that the course of action specified in Cl. (a) of sub-section (1) Section 18-FD should be followed in relation to a company owning an industrial undertaking shall be deemed to be a ground specified in Section 433 of the Companies Act, 1956 (1 of 1956), on which the company may be wound up by the High Court ;
       (b) the authorised person shall, as soon as may be, after the decision specified in Cl. (a) of sub-section (1) of Section 18-FD has been taken by the Central Government, present an application to the High Court for the winding-up of the company owning the industrial undertaking;
   &nbs

S.18(f)(h) Stay of suits and other proceedings

In the case of a company in respect of which an order under Section 18-FD has been made, no suit or other legal proceeding shall be instituted or continued against the company except with the previous permission of the Central Government or any officer or authority authorised by that Government in this behalf.


S.18(g) Power to control supply, distribution, price, etc. of certain articles

       (1) The Central Government, so far as it appears to it to be necessary or expedient for securing the equitable distribution and availability at fair prices of any article or class of articles relatable to any scheduled industry, may, notwithstanding anything contained in any other provisions of this Act, by notified order, provide of regulating the supply and distribution thereof and trade and commerce therein.
       (2) Without prejudice to the generality of the powers conferred by sub-section (1), a notified order made thereunder may provide--
       (a) for controlling the prices at which any such article or class thereof may be bought or sold ;
       (b) for regulating by licences, permits or otherwise the distribution, transport, disposal, acquisition, possession, use or consumption of any such article or c

S.19 Powers of inspection

       (1) For the purpose of ascertaining the position or working of any industrial undertaking or for any other purpose mentioned in this Act or the rules made thereunder, any person authorised by the Central Government in this behalf shall have the right--
       (a) to enter and inspect any premises ;
       (b) to order the production of any document, book, register or record in the possession or power of any person having the control of, or employed in connection with, any industrial undertaking ; and
       (c) to examine any person having the control of, or employed in connection with, any industrial undertaking.
       (2) Any person authorized by the Central Government under sub-section (1) shall be deemed to be a public servant within the meaning of Section 21 of the India

S.20 General prohibition of taking over management or control of industrial undertakings

After the commencement of this Act, it shall not be competent for any State Government or a local authority to take over the management or control of any industrial undertaking under any law for the time being in force which authorizes any such Government or local authority so to do.


S.21 Certain administrative expenses of Development Councils to be paid from moneys provided by Parliament

Such administrative expenses as relate to the emoluments of officers of a Development Council who are appointed by or with the approval of the Central Government, shall be defrayed out of moneys provided by Parliament.


S.22 Power of the Central Government to issue directions to Development Councils

In the exercise of its functions under this Act, every Development Council shall be guided by such instructions as may be given to it by the Central Government and such instructions may include directions relating to the manner in which, and the purpose for which, any proceeds of the cess levied under Section 9 which may have been handed over to it, shall be expanded.


S.23 Decision of Central Government final respecting certain matters

       If, for the purposes of this Act, any question arises as to whether--
       (a) there has been a substantial expansion of an industrial undertaking, or
       (b) an industrial undertaking is producing or manufacturing any new article,
       the decision of the Central Government thereon shall be final.]
       ____________________________
       1. Substituted by Act 26 of 1953, Section 14. for the original Section 23 (w.e.f. 1st October, 1953).


S.24 Penalties

       1[(1) If any person contravenes or attempts to contravene or abets the contravention of--
       (i) the provisions of sub-section (1),2[or sub-section (4)] of Section 10 or of sub-section (1) of Section 11 or of Section 11-A or of sub-section (1) of Section 133[or of4[sub-sections (2), (2-A), (2-D), (2-F) and (2-G) of Section 29-B]], or
       (ii) any direction issued under Section 16 or sub-section (3) of Section 18-B, or
       (ii) any order made under Section 18-G, or
       (iv) any rule, the contravention of which, is made punishable under this section, he shall be punishable with imprisonment which may extend to six months, or with fine which may extend to five thousand rupees, or with both, and, in the case of a continuing contravention, with an additional fine which

S.24(a) Penalty for false statements

       1[24-A. Penalty for false statements
       If any person,--
       (a) when required by this Act or by any order under this Act to make any statement or furnish any information, makes any statement or furnishes any information which is false in any material particular and which he knows or has reasonable cause to believe to be false or does not believe to be true ; or
       (b) makes any such statement as aforesaid in any book, account, record, declaration, return or other document which he is required by any order made under this Act to maintain or furnish ;
       he shall be punishable with imprisonment which may extend to three months or with fine which may extend to two thousand rupees, or with both.]
       ________________________

S.25 Delegation of powers

       1[25. Delegation of powers
       (1) The Central Government may, by notified order, direct that any power exercisable by it under this Act (other than the power given to it by Secs. 162[,18-A, 18-AA and 18-FA]) shall, in relation to such matters, and subject; to such conditions, if any, as may be specified in the direction, be exercisable also by such officer or authority (including in the said expressions any Development Council, State Government or officer or authority subordinate to the Central Government) as may be specified in the direction.
       (2) Any power exercisable by a State Government by virtue of a direction under sub-section (1) may, unless otherwise provided in such direction, be exercised also by such officer or authority subordinate to that State Government as it may, by notified order, specify in this behalf.
  &nb

S.26 Power to issue directions

The Central Government may give directions to any State Government as to the carrying into execution in the State of any of the provisions of this Act or of any order or direction made thereunder.


S.27 Cognizance of offences

No Court shall take cognizance of any offence punishable under this Act except on a report in writing of the facts constituting such offence made by a person who is a public servant as defined in Section 21 of the Indian Penal Code (45 of 1860).


S.28 Burden of proof in certain cases

Where any person is prosecuted for contravening any order made under Section 18-G which prohibits him from doing an act or being in possession of a thing without lawful authority or without a permit, licence or other document, the burden of proving that he has such authority, permit, licence or other document shall be on him.


S.29 Jurisdiction of Courts

       (1) Subject to the provisions of subsection (2), no Court inferior to that of a Presidency Magistrate or a Magistrate of the first class shall try any offence punishable under this Act.
       (2) Any Magistrate or bench of Magistrates empowered, for the time being, to try in a summary way the offence specified in sub-section (1) of Section 260 of the Code of Criminal Procedure, 1898 (5 of 1898),1may, on application in this behalf being made by the prosecution, try in accordance with the provisions contained in Sections 262 to 265 of the said Code any offence which consists of a contravention of an order made under Section 18-G.
       ______________________________
       1. See now Code of Criminal Procedure, 1973 (2 of 1974).


S.29(a) Special provision regarding fines

Notwithstanding anything contained in Section 32 of the Code of Criminal Procedure, 1898 (5 of 1898),1 it shall be lawful for any Magistrate of the first class and for any Presidency Magistrate to pass a sentence of fine exceeding one thousand rupees on any person convicted of any offence under this Act.


S.29(b) Power to exempt in special cases

       1[(1)] If the Central Government is of opinion, having regard to the smallness of the number of workers employed or to the amount invested in any industrial undertaking or to the desirability of encouraging small undertakings generally or to the stage of development of any scheduled industry, that it would not be in public interest to apply all or any of the provisions of this Act thereto, it may, by notification in the Official Gazette, exempt, subject to such conditions as it may think fit to impose, any industrial undertaking or class of industrial undertakings or any scheduled industry or class of scheduled industries as it may specify in the notification from the operation of all or any of the provisions of this Act or of any rule or order made thereunder.
       2[(2) Where any notification under sub-section (1) granting any exemption is cancelled, no owner of any industrial underta

S.29(c) Protection of action taken under the Act

       (1) No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done under this Act or any rule or order made thereunder.
       (2) No suit or other legal proceeding shall lie against the Government for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made thereunder.


S.29(d) Debts incurred by the authorized person to have priority

       Every debt arising out of any loan obtained by the authorised person for carrying on the management of, or exercising function of control in relation to, an industrial undertaking or part thereof, the management of which has been taken over under Section 18-A or Section 18-AA or Section 18-FA,--
       (a) shall have priority over all other debts, whether secured or unsecured, incurred before the management of such industrial undertaking was taken over,
       (b) shall be a preferential debt within the meaning of Section 530 of the Companies Act, 1956 (1 of 1956),
       and such debts shall rank equally among themselves and be paid in full out of the assets of the industrial undertakings unless such assets are insufficient to meet them, in which case they shall abate in equal proportions.]
   &

S.30 Power to make rules

       (1) The Central Government, may, subject to the condition of previous publication, make rules for carrying out the purposes 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 constitution of the Advisory Council and Development Councils, the term of office and other conditions of service of, the procedure to be followed by, and the manner of filling casual vacancies among members of the Advisory Council or a Development Council ;
       (b) the form of the statement of account to be furnished by a Development Council ;
       (c) the intervals at which, the time within which, and the manner in which the cess leviable under Section 9 shall

S.31 Application of the other laws not barred

The provisions of this Act shall be in addition to and not, save as otherwise, expressly provided in this Act, in derogation of any other Central Act for the time being in force, relating to any of the scheduled industries.


S.32 Amendment of Section 2, Act 14 of 1947

Rep. by Repealing and Amending Act. 1957 (36 of 1957), Section 2 and Schedule I.


Sch.1 SCHEDULE

       1[THE FIRST SCHEDULE
       [See Sections 2 and 3(i)]
       Any industry engaged in the manufacture or production of any of the articles mentioned under each of the following headings or sub-headings, namely :
       1. METALLURGICAL INDUSTRIES :
       A. Ferrous :
       (1) Iron and steel (metal).
       (2) Ferro-alloys.
       (3) Iron and steel castings and forgings.
       (4) Iron and steel structurals.
       (5) Iron and steel pipes.
       (6) Special steels
       (7) Other products of iron and steel.

Sch.2 SCHEDULE

       [See Section 6(4)]
       Functions which may be assigned to Development Councils :
       (1) Recommending targets for production, co-ordinating production programmes and reviewing progress from time to time.
       (2) Suggesting norms of efficiency with a view to eliminating waste, obtaining maximum production, improving quality and reducing costs.
       (3) Recommending measures for securing the fuller utilisation of the installed capacity and for improving the working of the industry, particularly of the less efficient units.
       (4) Promoting arrangements for better marketing and helping in the devising of a system of distribution and sale of the produce of the industry which would be satisfactory to the consumer.
  

Sch.3 SCHEDULE

       (See Section 18-FB)
       1. The Industrial Employment (Standing Orders) Act, 1946 (20 of 1946).
       2. The Industrial Disputes Act, 1947 (14 of 1947).
       3. The Minimum Wages Act, 1948 (11 of 1948).]
       _______________________________
       1. Inserted by Act 72 of 1971, Section 10 (w.e.f. 1st November, 1971).


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