Dalmia Dadri Cement Limited (Acquisition and Transfer of Undertakings) Act,1981
Act No : 31
Section : SHORT TITLE AND COMMENCEMENT
DALMIA DADRI CEMENT LIMITED (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1981
31 of 1981
15th September, 1981
The unsatisfactory state of functioning of Messrs. Dalmia Dadri Cement Limited, one of the cement factories in the country, located at Charkhi Dadri (Haryana) with a licensed capacity of 2.39 lakhs tonnes of cement per annum has been engaging the attention of the Central Government. Due to financial difficulties resulting from mismanagement the company has closed down production in 1975. As a result of the efforts made towards the rehabilitation of the company by the State Government, Central Government and financial institutions the company restarted its production in December 1975, the performance of the company had, however, not been satisfactory and an investigation, under the provisions of the Industries (Development and Regulation) Actwas carried out. The Investigating Committee had commented adversely on the functioning of this cement factory, Due to acute financial crisis, the management of this company had closed down the factory on 18th March, 1980 and the factory has been lying closed since then.
2. The factory has been located in a deficit area and its closure has aggravated the shortage of cement in this area. The factory had employed a total of about 1600 persons at the time of its closure in March. 1980 and the Management had terminated the services of these employees without giving them any retrenchment benefits, the State Government of Haryana has been continuously urging the Government of India to take over this factory in view of the fact that a large number of employees will be thrown out of employment, if the factory is permanently closed down. The State Government of Haryana has indicated that owing to financial constraints and lack of technical expertise, the State Government is not in a position to take over this cement factory for restarting and running it.
3. The liability of the factory on its restart has been assesed and in the interest of restarting production of cement and also to provide employment to the workers, the Central Government had decided that it would be in the public interest to acquire the cement factory of this company and to transfer it to the Cement Corporation of India which is a public sector undertaking engaged in the manufacture and sale of cement.
4. The Bill seeks to give effect to the above object- Gaz. of Ind., 5-5-1981, Pt. II. S. 2 Ext., p. 361.
An Act to provide for the acquisition and transfer of the undertakings of the Dalmia Dadri Cement Limited with a view to securing the proper management of such undertakings so as to subserve the interest of the general public by ensuring the continued manufacture, production and distribution of cement which is essential to the needs of the economy of the country and for matters connected therewith or incidental thereto.
WHEREAS Messers. Dalmia Dadri Cementi Limited has been engaged in the manufacture and production of portland cement, an article mentioned in the
First Schedule to the Industries (Development and Regulation) Act, 1951:
AND WHEREAS an order has been made for the winding up of the Company and proceedings for its liquidation are pending in the High Court of Punjab and Harayana;
AND WHEREAS the undertakings of the Company have not been functioning, since March 1980:
AND WHEREAS it is necessary to acquire the undertakings of the said Company to ensure that the interests of the general public are served by the continuance, by the undertakings of the said Company, of the manufacture. production of portland cement which is essential to the needs of the economy of the countrt.
Be it enacted by Parliament in the Thirty-second Year of the Republic of India as follows : -
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be called the Dalmia Dadri Cement Limited (Acquisition and Transfer of Undertakings) Act 1981.
(2) It shall be deemed to have come into force on the 23rd day of June, 1981
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