No: 39 Dated: Sep, 08 1995

The Textile Undertakings (Nationalisation) Act, 1995

ACT NO. 39 OF 1995

    An Act to provide for the acquisition and transfer of the textile undertakings, and the right, title and interest of the owners in respect of the textile undertakings, specified in the First Schedule with a view to augmenting the production and distribution of different varieties of cloth and yarn so as to subserve the interests of the general Public and for matters connected therewith or incidental thereto, WHEREAS the textile companies specified in column (3) of the First Schedule have, through their undertakings specified in column (2) of the said Schedule, been engaged in the manufacture and production of different varieties of cloth and yarn;

    AND WHEREAS, pending acquisition, the management of the said textile undertakings was taken over by the Central Government under section 3 of the Textile Undertakings (Taking Over of Management) Act, 1983, (40 of 1983.) or under section 3 of the Laxmirattan and Atherton West Cotton Mills (Taking Over of Management) Act, 1976, (98 of 1976.) as the case may be;

    AND WHEREAS large sums of money have been invested with a view to making the said textile undertakings viable; 2

    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 companies;

    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 textile companies to ensure that the interest of the general public are served by the continuance by the said undertakings of the companies of the manufacture, Production and distribution of different varieties of cloth and yarn which are vital to the needs of the country;

BE it enacted by Parliament in the Forty-sixth Year of the Republic of India as follows:-

CHAPTER I

Preliminary

1. Short title and commencement. - (1) This Act may be called the Textile Undertakings (Nationalisation) Act, 1995.

(2) The provisions of sections 31 and 32 shall come into force a once and the remaining provisions of this Act shall be deemed to have come into force on the 1st day of April, 1994.

2. Definitions. - (1) In this Ordinance, unless the context otherwise requires,-

(a)"appointed day" means the 1st day of April, 1994;

(b) "bank" means-

(i) the State Bank of India constituted under the State Bank of India Act, 1955; (23 of 1955.)

(ii) a subsidiary Bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959; (38 of 1959.)

(iii) a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act. 1970; (5 of 1970.)

(iv) a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980; (40 of 1980.)

(v) any other bank, being a scheduled bank as defined in clause (e) of section 2 of the Reserve Bank of India Act, 1934; (2 of 1934.)

(c) "Commissioner" means a Commissioner of Payments appointed under section 17;

(d) "Custodian" means a Custodian appointed under section 4 of the Textile Undertakings (Taking Over of Management) Act, 1983 (40 of 1983.) or under section 4 of the Laxmirattan and Atherton West Cotton Mills (Taking Over of Management) Act, 1976, (98 of 1976.) as the case may be; 3 (e) "National Textile Corporation" means the National Textile Corporation Limited formed and registered under the Companies Act, 1956; (1 of 1956.)

(f) "notification" means a notification published in the Official Gazette;

(g) "owner", when used in relation to a textile undertaking, means any person or firm who or which is, immediately before the appointed day, the immediate proprietor or lessee or occupier of the textile undertaking or any part thereof, and in the case of a textile company which is being wound Lip or the business whereof is being carried' on by a liquidator or receiver, includes such liquidator or receiver, and also includes any agent or manager of such owner but does not include any person or body of persons authorised under the Textile Undertakings (Taking Over of Management) Act, 1983 (40 of 1983.) or under the Laxmirattan and Atherton West Cotton Mills (Taking Over of Management) Act, 1976 (98 of 1976.) to take over the management of the whole or any part of the textile undertaking;

(h) "Prescribed" means prescribed by rules made under this Act;

(i) "specified date" means such date as the Central Government may, for the purpose of any provision of this Act, by notification, specify; and different dates may be specified for different provision of this Act;

(j) "subsidiary textile corporation" means the National Textile Corporation (South Maharashtra) Limited, the, National Textile Corporation (Uttar Pradesh) Limited or, any other textile corporation formed by the National Textile Corporation as its subsidiary;

(k) "textile" includes yarn or fabrics made either wholly or partly of cotton, wool, jute, synthetic and artificial (man-made) fibres;

(l) "textile company" means a company (being a company a company a defined in the Companies Act. 1956) (1 of 1956.) specified in column (3) of the First Schedule as owning the textile undertaking specified in the corresponding entry in column (2) of that Schedule;

(m) "textile undertaking" or "the textile undertaking" means an undertaking specified in column (2) of the First Schedule, the management of which was before the appointed day, taken over by the Central. Government under the Textile Undertakings (Taking Over of Management) Act, 1983, (40 of 1983.) or is file case may be under the Laxmirattan and Atherton West Cotton Mills (Taking Over of Management) Act, 1976; (98 of 1976.)

    (2) Words and expressions used herein and rot defined but defined in the Companies Act, 1956, (1 of 1956.) shall have the meanings respectively assigned to them in that Act. 4

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