Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Act,1986
Act No : 30
Section : PRELIMINARY
SWADESHI COTTON MILLS COMPANY LIMITED (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1986
30 of 1986
30th May, 1986
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 sub-serve the interests of the general public by ensuring the continued manufacture, production and distribution of different varieties of cloth and yam and thereby to give effect to the policy of the State towards securing the principles specified in clauses (b) and (c) of Article 39of the Constitution and for matters connected therewith or incidental thereto.
Whereas the Swadeshi Cotton Mills Company Limited has, through its six textile undertakings, been engaged in the manufacture and production of different varieties of cloth and yarn ;
And whereas the management of the said textile undertakings was taken over by the Central Government under Section 18-AA of the Industries (Development and Regulation) Act, 1951(65 of 1951) ;
And whereas large sums of money have been invested with a view to making the said textile undertakings viable ;
And whereas further investment of very large sums of money is necessary for the purpose of securing the optimum utilisation of the available facilities for the manufacture, production and distribution of cloth and yarn by the said textile undertakings of the Company;
And whereas such investment is also necessary for securing the continued employment of the workmen employed in the said textile undertakings;
And whereas it is necessary in the public interest to acquire the said textile undertakings of the Swadeshi Cotton Mills Company Limited to ensure that the interests of the general public are served by the continuance by the said undertakings of the Company of the manufacture, production and distribution of different varieties of cloth and yarn which are vital to the needs of the country; And whereas such acquisition is for giving effect to the policy of the State towards securing the principles specified in clauses (b) and (c) of Article 39 of the Constitution; Be it enacted by Parliament in the Thirty seventh Year of the Republic of India as follows :-
Prefatory Note-Statement of Objects and Reasons.-The management of six textile undertakings of the Swadeshi Cotton Mills Company Limited, Kanpur was taken over by the Central Government under Section 18-AA of the Industries (Development and Regulation) Act, 1951on the 13th day of April, 1978. After such take over, large sums of money had been invested with a view to making the said undertakings viable and the liabilities of the undertakings were also frozen under an order issued under the Industries (Development and Regulation) Act.
Further investment of money is also necessary for the purpose of securing the optimum utilisation of the available facilities by the said undertakings and for the continued employment of the workmen employed therein.
In addition, the order freezing the liabilities of the undertakings was expiring on the 19th of April, 1986 and it could not be further extended beyond that date as the maximum period specified under the Industries (Development and Regulations) Act was expiring on that date. The Swadeshi Cotton Mills Company Limited (Acquisition and Transfer of Undertakings) Ordinance. 1986 was, therefore, promulgated by the President on the 19th April, 1986 to provide for the acquisition of all the six undertakings of the Company.
2. The Bill seeks to replace the aforesaid Ordinance.
CHAPTER 01 PRELIMINARY
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