Central India Spinning, Weaving and Manufacturing Company Limited, the Empress Mills, Nagpur (Acquisition and Transfer of Undertaking) Act, 1986
No: 46 Dated: Dec, 26 1986
THE CENTRAL INDIA SPINNING, WEAVING AND MANUFACTURING COMPANY LIMITED, THE EMPRESS MILLS, NAGPUR (ACQUISTION AND TRANSFER OF UNDERTAKING) ACT, 1986
ACT No. XLVI OF 1986
An Act to provide for acquisition and transfer of undertaking of the Central India Spinning, Weaving and Manufacturing Company Limited, with a view to securing the proper management of such undertaking so as to subserve the interest of the general public by ensuring the continued manufacture, production and distribution of textile and paper products which are essential to the needs of the economy of the country and for matters connected therewith or incidental thereto.
WHEREAS, the Central India Spinning, Weaving and Manufacturing Company Limited, being an existing company as defined in clause (ii) of sub-section (1) of section 3 of the Companies Act, 1956, had been engagged in the manufacture and production of yarn, cloth and paper through its undertaking which was composite textile mill and paper manufacturing unit, styled as the Central India Spinning, Weaving and Manufacturing Company Limited, “The Empress Mills”, Nagpur ;
AND WHEREAS, in Petition No. 183 of 1986 filed by the company for voluntary winding up, the High Court of Bombay had made an order for appointment of the provisional liquidator and the proceedings for its liquidation were pendings ;
AND WHEREAS, the company had declared lock-out throwing about more than 6,000 workers out of employment and the undertaking has not been functioning since 3rd May 1986 ;
AND WHEREAS, it was expedient to acquire the undertaking of the said company to ensure that the interest of the general public and of the employees of the undertaking were served by the continuance, by the undertaking of the said company, of the manufacture, production and distribution of textile and paper products which are essential to the needs of the country and to provide for matters connected therewith or incidental thereto ;
AND WHEREAS, such acquisition is for giving effect to the policy of the State towards securing the principle specified in clause (b) of Article 39 of the Constitution ; AND WHEREAS, both Houses of the State Legislature were not in session ;
AND WHEREAS, the Government of Maharashtra was satisfied that circumstances existed which rendered it necessary for him to take immediate action to make a law for the puroposes aforesaid ; and, therefore, pomulgated the Central India Spinning, Weaving and Manufacturing Company Limited, the Empress Mills, Nagpur (Acquisition and Transfer of Undertaking) Ordinance, 1986, on the 3rd October 1986 ;
AND WHEREAS, it is expedient to replace the said Ordinance by an Act of the State Legislature ;
It is hereby enacted in the Thirty-seventh Year of the Republic of India as follows :—
CHAPTER I PRELIMINARY
1. Short title and commencement:- (1) This Act may be called the Central India Spinning, Weaving and Manufacturing Company Limited, the Empress Mills, Nagpur (Acquisition and Transfer of Undertaking) Act, 1986.
(2) It shall be deemed to have come into force on the 3rd October 1986.
2. Definitions:- In this Act, unless the context otherwise requires,—
(a) “appointed day” means the date of commencement of this Act ;
(b) “bank” means —
(i) the State Bank of India constituted under the State Bank of India Act, 1955;
(ii) a Subsidiary Bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 ;
(iii) a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 ;
(iv) any other bank, being a scheduled bank as defined in clause (e) of section 2 of the Reserve Bank of India Act, 1934 ;
(c) “Commissioner” means the Commissioner of Payment appointed under section 14 ;
(d) “Corporation” means the Maharashtra State Textile Corporation, a Government company registered under the Companies Act, 1956 ;
(e) “Instituition” means —
(i) The General Insurance Corporation formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972,
(ii) The Industrial Credit and Investment Corporation of India, a Company being an existing Company as defined in clause (ii) of section 3 of the Companies Act, 1956,
(iii) The Industrial Devlopment Bank of India established under section 3 of the Industrial Devlopment Bank of India Act, 1964,
(iv) The Industrial Finance Corporation of India established under section 3 of the Industrial Finance Corporation of India Act, 1948,
(v) The Industrial Re-construction Bank of India established under section 3 of the Industrial Re-construction Bank of India Act, 1984,
(vi) The Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956,
(vii) The Maharashtra State Finance Corporation established under section 3 of the State Financial Corporation Act, 1951,
(viii) The State Industrial and Investment Corporation of Maharashtra a Company registered under the Companies Act, 1956, or
(ix) The Unit Trust of India established under section 3 of the Unit Trust of India Act, 1963 ;
(f) “new Government company” means a Government Company (including a subsidiary Government Company) formed and registered under the Companies Act, 1956, in which the undertaking is directed to vest under sub-section (1) of section 6 ;
(g) “prescribed” means prescribed by rules made under this Act ;
(h) “proprietors” means the Central India Spinning, Weaving and Manufacturing Company Limited, an existing company as defined in clause (ii) of sub-section (1) of section 3 of the Companies Act, 1956 with Registered Office at Army and Navy Building, 148, Mahatma Gandhi Road, Fort, Bombay -400 023 and includes the liquidator appointed in petition No. 183 of 1986 in the Bombay High Court ;
(i) “Schedule” means the Schedule appended to this Act;
(j) “specified date”, in relation to a provision of this Act, means such date as the State Government may, by notifiaction in the Official Gazette, specify for the purposes of that provision, and different dates may be specified for different provisions of this Act ;
(k) “undertaking” means the industrial undertaking known as “the Central India Spinning, Weaving and Manufacturing Company Limited, ‘the Empress Mills’, Nagpur”;
(l) words and expressions used herein and not defined, but defined in the Companies Act, 1956, shall have the meanings respectively assigned to them in that Act;