Textile Undertakings (Taking Over of Management) Act,1983
Act No : 40
Section : PRELIMINARY
TEXTILE UNDERTAKINGS (TAKING OVER OF MANAGEMENT) ACT, 1983
40 of 1983
25th December, 1983
STATEMENT OF OBJECTS AND REASONS The Textile Undertakings (Taking Over of Management) Ordinance, 1983 was promulgated by the President on 18th October, 1983 to vest in the Central Government the management of thirteen textile undertakings, pending their nationalisation. By reason of mismanagement of the affairs of these undertakings, their financial condition which became wholly unsatisfactory even before the commencement in January, 1982 of the textile strike in Bombay further deteriorated thereafter. Certain public financial institutions had with a view to making the said undertakings viable, advanced large sums of money to the companies owning these undertakings. Further investment of very large sums of money was found to be necessary for reorganising and rehabilitating the said undertakings and thereby to protect the interests of the workmen employed therein and to augment the production and distribution at fair prices of different varieties of cloth and yarn so as to sub-serve the interests of the general public.
Government considered the nationalization of the said undertakings to be necessary to enable it to invest such large sums of money and safeguard other interests. Once the basic decision of nationalisation was taken, a genuine apprehension arose in the Government's mind that unless the management of the concerned undertakings was taken over on immediate basis there might be large scale frittering away of assets which would be detrimental to the public interest. It thus became urgently necessary for Government to take over management of the undertakings in the public interest. As Parliament was not in Session at that time and every day's delay could have had serious repercussions the aforementioned Ordinance was promulgated.
2. The Bill seeks to replace the said Ordinance, -Gaz. of Ind., 22 -11-1983, Pt. II S. 2 Ext. p. 25 (No. 41).
An Act to provide for the taking over in the public interest of the management of the textile undertakings of the companies specified in the First Schedule pending nationalisation of such undertakings and for matters connected therewith or incidental thereto.
WHEREAS by reason of mismanagement of the affairs of the textile undertakings specified in the First Schedule, their financial condition became wholly unsatisfactory even before the commencement in January 1982 of the textile strike in Bombay and their financial condition has thereafter further deteriorated;
AND WHEREAS certain public financial institutions have advanced large sums of money to the companies owning the said undertakings with a view to making the said undertakings viable;
AND WHEREAS further investment of very large sums of money is necessary for reorganising and rehabilitating the said undertakings and thereby to protect the interests of the workmen employed therein and to augment the production and distribution at fair prices of different varieties of cloth and yarn so as to subserve the interests of the general public;
AND WHEREAS acquisition by the Central Government of the said undertakings is necessary to enable it to invest such large, sums of money;
AND WHEREAS pending the acquisition of the said undertakings, it is expedient in the public interest to take over the management of the said undertakings;
BE it enacted by Parliament in the Thirty-fourth Year of the Republic of India as follows:-
CHAPTER 1 PRELIMINARY
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