TEXTILE UNDERTAKINGS (TAKING OVER OF MANAGEMENT) ACT, 1983
(1) This Act may be called The Textile Undertakings (Taking over of Management) Act, 1983.
(2) It shall be deemed to have come into force on the 18th day of October, 1983.
In this Act, unless the context otherwise requires,-
(a) "appointed day" means the date on which this Act comes into force;
(b) "Custodian" means the person appointed under section 4 to take over the management of the undertakings;
(c) "notification" means a notification published in the Official Gazette;
(d) "textile undertakings" or "the textile undertaking" means an undertaking specified in the second column of the First Schedule;
(e) "textile company" means a company (being a company as defined in the Companies Act, 1956) specified in the third column of the First Schedule, as owning the undertaking specified in the corresponding entry in the second column of that Schedule;
(1) On and from the appointed day the management of all the textile undertakings shall vest in the Central Government.
(2) The textile undertaking shall be deemed to include all assets, rights, lease-holds, powers, authorities and privileges of the textile company in relation to the said textile undertaking and all property, movable and immovable, including lands, buildings, workshops, projects, stores, spares, instruments, machinery, equipment automobiles and other vehicles, and goods under production or in transit, cash balances, reserve fund, investments and booklets and all other rights and interests in or arising out of such property as were, immediately before the appointed day, in the ownership, possession, power or control of the textile company whether within or outside India and all books of account, registers and all other documents of whatever nature relating thereto.
(1) The Central Government may, as soon as it is convenient administratively so to do, appoint any person or body of persons (including a Government company, whether in existence at the commencement of this Act or incorporated thereafter) as a Custodian of the textile undertaking for the purpose of carrying on the management of such undertaking and the Custodian so appointed shall carry on the management of the textile undertaking for and on behalf of the Central Government.
(2) On the appointment of a Custodian under sub-section (1), the management of the textile undertaking shall vest in such Custodian and all persons in charge of the management of such undertaking immediately before such appointment shall cease to be in charge of such management and shall be bound to deliver such management to the Custodian.
(3) The Central Governme
(1) Every textile company shall be given by the Central Government an amount, in cash, and at the rate specified in sub-section (2), for the vesting in it, under section 3, of the management of the textile undertaking of the company.
(2) for every month during which the management of the textile undertaking remains vested in the Central Government under this Act, the amount referred to in sub-section (1), shall be computed-
(i) for a spinning unit, at the rate of fifty paise per 1,000 spindles or any part thereof;
(ii) for a weaving unit, at the rate of one rupee per 100 looms or any part thereof;
(iii) for a composite unit with or without dye-house, at the rate of fifty paise per 1,000 spindles or any part thereof plus one rupee per 100 looms p
(1) The Central Government may, if satisfied, in relation to any of the textile undertakings or any part thereof, the management of which has vested in it under this Act, that it is necessary so to do in the interests of the general public with a view to preventing any fall in the volume of production of such undertaking, by notification, declare that-
(a) all or any of the enactments specified in the Second 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 undertaking as may be specified in such notification, or
(b) the operation of all or any of the contracts, assurances of property, agreement, settlements, awards, standing orders or other instruments in force (to whih such textile undertaking or
The provisions of this Act or any notification, order or rule made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any law (other than this Act) or in any instrument having effect by virtue of any law other than this Actor in any decree or order of any court.
(1) So long as the management of the textile undertaking of a textile company remains vested in the Central Government under this Act, notwithstanding anything contained in the Companies Act, 1956 or in the memorandum or articles of association of such company,-
(a) it shall not be lawful for the shareholders of the textile company or any other person to nominate or appoint any person to be a Director of such textile company in relation to such undertaking;
(b) no resolution affecting (whether directly or indirectly) such undertaking which is passed at any meeting of shareholders of the textile company or after the appointed day shall be given effect to unless approved by the Central Government.
(c) no proceeding for the winding up of the textile company or for the appointment of a liquidat
In computing the period of limitation prescribed by any law for the time being in force for any suit or application against any person by any of the textile companies in respect of any matter arising out of any transaction in relation to its textile undertaking, the time during which this Act remains in force shall be excluded.
(1) No suit, prosecution or other legal proceeding shall be against the Central Government or the Custodian or the Additional Custodian or any officer or other employee of the Central Government or the Custodian for anything which is in good faith done or intended to be done under this Act.
(2) No suit or other legal proceeding shall lie against the Central Government or the Custodian or the Additional Custodian or any of the officers or other employees of the Central Government or the Custodian for any damage caused or likely to be caused by anything which is in good faith done or intended to be done under this Act.
(1) If the Central Government is satisfied, after such inquiry as it may think proper, that any contract or agreement entered into at any time within three years immediately preceeding the appointed day between any of the textile companies or managing or other director of any such textile company and any other person in relation to any service, sale or supply to, or by, its textile undertaking and in force immediately before the appointed day, has been entered into in bad faith, or is detrimental to the interests of the textile undertaking of the concerned textile company, it may make, within one hundred and eighty days from the appointed day, an order cancelling or varying (either unconditionally or subject to such conditions as it may think fit to impose) such contract or agreement and thereafter the contract or agreement shall have effect accordingly :
Provided that no contract
Any transfer of property, movable or immovable, or any delivery of goods made by or on behalf of any of the textile companies (not being a transfer or delivery made in the ordinary course of its business or in favour of a purchaser for valuable consideration and in good faith), if made within a period of six months immediately preceding the appointed day, shall be void against the Central Government or the Custodian, as the case may be.
If the Custodian is of opinion that any contract of employment entered into by any textile company or managing or other director of the company in relation to its textile undertaking at any time before the appointed day is unduly onerous, he or it may, by giving to the employee one month's notice in writing or salary or wages for one month in lieu thereof, terminate such contract of employment.
(1) Any person who,-
(a) having in his possession or custody or under his control any property forming part of any of the textile undertakings, wrongfully withholds such property from the Custodian or any person authorised under this Act, or
(b) wrongfully obtains possession of any such property, or
(c) wilfully retains any property forming part of such textile undertaking or removes or destroys it, or
(d) wilfully withholds from, or fails to deliver to, the Custodian or any person authorised under this Act, any books, papers or other documents relating to such textile undertaking which may be in his possession, power or custody or under his control, or
(e) fails, without any reasonable excuse, to fu
(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly :
Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge and that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attri
(1) The Central Government may, by notification, make rules for carrying out the provisions of this Act.
(2) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive session aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
(1) The Textile Undertakings (Taking Over of Management) Ordinance, 1983, is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed, to have been done or taken under the corresponding provisions of this Act.
[See section 2 (d) and (c)]
S. No. Name of the undertaking Name of the owner
1 2 3
1. Elphinstone Spinning and Weaving Mills, Elphinstone Road, Bombay. The Elphinstone Spinning and Weaving Mills Co. Ltd., Kamani Chambers, 32, Ramji Bhai Kamani Marg, Bombay-38.
2. Finlay Mills, 10/11, Dr. S.S. Rao Road, Bombay. The Finlay Mills Ltd., Chartered Bank Building, Fort, Bombay-23.
3. Gold Mdhur Mills, Dadasaheb Phalke Road, Dadar, Bombay. The Gold Mohur Mills Ltd., Chartered Bank Building, Fort, Bombay-23.
4. Jam Manufacturing Milts, Lalbaug, Parel, Bombay. The Jam Manufacturing Co. Ltd., Lalbaug, Parel, Bombay-12.
&n
THE SECOND SCHEDULE
[Section 6]
1. The Industrial Employment (Standing Orders) Act, 1946.
2. The Industrial Disputes Act, 1947.
3. The Minimum Wages Act, 1948.
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