REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART II -Section 2

PUBLISHED BY AUTHORITY

No. 41]

NEW DELHI, TUESDAY, NOVEMBER 22, 1983/AGRAHAYANA 1905

Separate paging is given to this Part in order that it may be filed

as a. separate compilation

LOK SABHA

The following Bills were introduced in Lok Sabha on the 22nd Novem-

ber, 1983: —

BILL NO. 116 OF 1983

A Bill to provide for the establishment of Tribunals for the determination.

in a fair manner, of the question whether a person is an illegal migrant

to enable the Central Government to expel illegal migrants from

India and for matters connected therewith or incidental thereto.

WHEREAS a substantial number of the foreigners who migrated into

India across the borders of the eastern and north-eastern regions of the

country on and after the 25th clay of March, 1971, have, by taking

advantage of the circumstances of such migration and their ethnic

similarities and other connections with the people of India and without

having in their possession any lawful authority so to " do, illegally

remained in India;

AND WHEREAS the continuance of such foreigners in India is detri-

mental to the interests of the public of India;

AND WHEREAS on account of the number of such foreigners and the

manner in which such foreigners have clandestinely been trying to

pass off as citizens of India and all other relevant circumstances, it 1B

accessary for the protection of the citizens of India to make special pro-

visions for the detection of such foreigners in Assam and also in any other

( 1 )

" THE GAZETTE OF INDIA EXTEA0BD1NARY

[PART II—

part of India in which such foreigners may be found to have remained

illegally;

BE it enacted by Parliament In the Thirty-fourth Year of the Republic

of India as follows: —

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Illegal Migrants (Determination by

Tribunals) Act, 1§83.

(2) It extends to the whole of India.

(3) It'shall be deemed to have come into force in the State of Assam

on the 15th day of October, 3983 and in any other State on such date as

the Central Government may, by notification in the Official Gazette,

appoint and different dates may be appointed for different States and

references in this Act to the commencement of this Act shall be

construed in relation to any State as references to the date of commence-

ment of this Act in such State.

2. Nothing in this Act shall apply to or in relation to—

(a) any person who was In any State and who had been

expelled from that State or India before the commencement of this

Act in that Slate or in relation to whose expulsion from such State

or India any order made before such commencement under any

other law is in force;

(b) any person detected as a foreigner at the time of his entry

across any border of India;

pa^csnn-t or travel document continued to remain therein after the

expiry o] the period for which he was authorised to remain in India

under such passport or travel document.

3. (7) In this Act, unless the context otherwise requires,—

(a) "Appellate Tribunal" means an Appellate Tribunal estab-

lished by the Central Government under sub-section (7) of section 15;

(b) "foreigner" has the same meaning as in the Foreigners Act,'

* 1946;

the following conditions is satisfied, namely: —

(i) he nas entered into India on or after the 25th day of

March, 1971,

(ii) he is a foreigner,

(Hi) he has entered into India without being in possession

of a valid passport or other travel document or any other lawful

authority in that behalf;

Short

title, ex-

tent and

commence-

ment,

Appllci-

tlon.

Definitions

and cons-

truction of

references.

31 of 1949.

SEC. 2]

THE GAZETTE OF INDIA. EXTKAORDINARY

(d) "notification" means a notification published in the Official

Gazette;

(e) "prescribed" means prescribed

by rules made under

this

Act;

(f) "Tribunal" means a Tribunal established

the

Central

Government under sub-section (1) of section 5.

(2) Any reference in this Act to any law which is not in forco

any area shall, in relation to that area, be construed as a reference

the corresponding law, if any, in force in that area.

4. (1) The provisions of this Act or of any rule or order

made

thereunder shall have effect notw thsta.iding anything contained in the

Immigrants (Expulsion from Assam) Act, 1950 or any other enactment

for the time being in force, or any rule or order made under any such

enactment and in force for the time being.

(2) In particular and without prejudice

to the generality of

the

provisions of sub-section (/), nothing in the proviso to section 2 of the

Immigrants (Expulsion from Assam) Act, 1950 shall apply

to or

relation to an illegal migrant as defined in clause (c) of sub-section (1)

of section 3.

CHAPTER II

ESTABLISHMENT OF TRIBUNALS

S..(l) The Central Government

may,

notification, establish,

tor

tne purposes of this

Act,

as many Illegal

Migrants

(Determination)

iribunals as it may doom necessary and specify

the principal place

sitting of,

and the territorial limits

within

which, each such

Tribunal

snail exercise Its jurisdicton,

(2) No person shall be appointed as a member of any such Tribunal

"Unless he is or has been a District Judge or an Additional District Judge

in any State.

(3) Each Tribunal shall consist of three members.

(4) On the establishment of a Tribunal, the Central Government shall

appoint one of the members thereof as the Chairman of such Tribunal.

(5) Each Tribunal shall sit in its principal place of sitting and in euch

other place or places as itg Chairman may, from time to time, appoint.

6. If, for any reason, any vacancy occurs in the office of the Chairman

or any other member of a Tribunal, the Central Government may fill

the vacancy by appointing any person who fulfils

the

qualifications

specified in sub-section (2) of section 5, as the Chairman, or, as the case

may be, member of such Tribunal.

7. The Central Government

shall make

available

to every

Tribunal

such staff as may be necessary for the

discharge of its functions

under

this Act.

100*1960.

10 of 1060.

Overrid-

ing effect

of the

Act

Establish-

ment of

Illegal

Migrants

(Determi-

nation)

Tribunals.

FTling of

vacancies.

Staff of

th« Tribu-

nal*.

THE GAZETTE OF INDIA EXTRAORDINARY

[PAUT II—

8. (1) If any question arises as to whether any person is or is not an

illegal migrant, the Central Government may, whether such question,

has arisen on a representation made by such person against any order

under the Foreigners Act, 1946 requiring him not to remain in India or

to any other effect or has arisen in any other manner whatsoever, refer

such question to a Tribunal for decision.

(2) Without prejudice to the power conferred on the Central Govern-

ment by sub-section (7), any person may make an application to the

Tribunal, for its decision, as to whether the person whose nam<3 and

other particulars are given in the application, is or is not an illegal

migrant:

Provided that no such application shall be entertained by the Tribunal

unless the person in relation to whom the application is made is found,

or resides, at a place within three kilometres from the place of residence

of the applicant.

(3) Every application made under sub-section (2) shall be made in

such form and in such manner as may be prescribed and shall be

accompanied by affidavits sworn by not less than two persons residing

within three kilometres of the area in which the person referred to, in

the application is found, or residing, corroborating the averments made

in the application, and shall also be accompanied by such fee, being not

less than twenty-five, and not more than one hundred, rupees, as may

be prescribed.

(4) Every reference under sub-section (1), and every application

under sub-section (2), shall be made to the Tribunal within the terri-

torial limits of whose jurisdiction the place of residence of the person

named in such reference or application, as the case may be, is situated:

Provided that where the person named in such reference or appli-

cation has no place of residence, the reference or application, as the case

may be, shall be made to the Tribunal within the territorial limits of

whose jurisdiction such person is found.

9. Every Tribunal shall have (the same powers as are vested in a civil

court under the Code of Civil Procedure, 1908, while trying a suit, in

respect of the following matters, namely: —

(a) summoning and enforcing the attendance of witnesses and

examining them on oath;

(b) discovery and production of any document;

(d) requisitioning of public records from any court or office;

10. On receipt of a reference under sub-section (1) of section 8, the

Tribunal shall serve on the person named in such reference, a notice,

accompanied by a copy of such reference, calling upon him to make,

within a period of thirty days from the date of receipt of such notice,

such representation with regard to the averments made in the reference,

and to produce such evidence as he may think fit in support of hia

defence:

Referen-

ce;) or

applica-

tions to

Tribunals.

Powers of

the Tri-

bunal.

Procedures

with res-

pect t»

reference8

under sub-

lection

(1) of

§ ectlon 8.

31 of 1946.

5 of 1908.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

Provided that if the Tribunal is satisfied that the person aforesaid

was prevented by sufficient cause from making his representation and

from producing evidence in support of his defence within the said period

of thirty days, it may permit him to make his representation and to

produce evidence in support of his defence, within such further period,

not exceeding thirty days, as it may, by order, specify.

11. (1) On receipt of an application under sub-section (2) of section 8,

the Tribunal s^U issue a notice, accompanied by a copy of the appli-

cation, to the prescribed authority calling upon it to furnish,

after

making such inquiry as that authority may deem fit, a report to the

Tribunal with regard to the averments made in the application,

(2) If, on a consideration of the report made by the prescribed

authority, the Tribunal is satisfied that—

(a) the person named in the application is not an illegal migrant

or that the application is frivolous or vexatious, or has not been

made in good faith, the Tribunal shall, after giving the applicant an

opportunity to be heard, reject the application;

(b) there arc reasonable grounds

to believe that the person

named in the application is an illegal migrant, the Tribunal shall

issue a notice accompanied \)y a copy of the application, to the person

named in the application, calling upon him to make, within thirty

days from the date of receipt of the notice, such representation with

regard to the averments made in the application and to produce such

evidence as he may think fit in support of his defence:

Provided that if the Tribunal is satisfied that the person afore-

said was prevented by sufficient cause from making his representation

and from producing evidence in support of his defence within the

said period of thirty da^s, it may permit him to make his representa-

tion and to produce evidence in support of his defence, within such

further period, not exceeding thirty days, as it may, by order, specify.

1?. (1) The Tribunal to which a reference has been made under sec-

tion 8, or to which an application has been made under that section, shall,

after taking such evidence as may be adduced before it and after making

such inquiry as it may think fit and after hearing such persons as it may

deem appropriate, by order, decide the question as to whether the person

named in such reference or application, a3 the case may be, is or is not

an illegal migrant:

Provided that where for the determination of such question in any

case the decision on any issue renders any decision on any other issue

or issues unnecessary, the Tribunal may not decide such other Issue or

issues.

(2) Where the members of the Tribunal differ in their opinion on

any point, the decision on such point shall be according to the opinion

" of the majority of such members.

(3) The Tribunal shall send a copy of every order passed by it to

the prescribed authority and to the parties to the reference, or the appli-

cation, as the case may be.

Procedure

with ros-

pect to

applica-

tions

under sub-

section

(2) of

sectioaS.

Determi-

nation of

the ques-

tion as to

whether a

person Is

an illegal

migrant.

THE GAZETTE OF INDIA EXTRAORDINARY

[PABX II—

(4) Every order passed under sub-section (1) shall, subject to the

decision of the Appellate Tribunal, be final and shall not be called in

question in any court.

13. Every reference made to a Tribunal under section 8 or application

made to a Tribunal under that section shall be inquired into as expediti-

ously as possible and every endeavour shall be made to conclude such

inquiry within a period of six months from the date of the service, on

the person concerned, of a copy of such reference or application,

14. The Central Government, or any person, named in a reference

or an application under section 8, or any applicant under sub-section (2)

of that section may, if it or he is not satisfied with any order made by a

Tribunal under section 12, prefer an appeal to the Appellate Tribunal

against such order.

15. (1) The Central Government may,

notification,

establish

for

each State in which this Act is In force an

Appellate Tribunal to be

known as the Illegal

Migrants

(Determinationj) Appellate

Tribunal few

deciding appeals preferred under section

14 against orders made by Tri-

bunals in the State and specify the principal place of

sitting of such

Appellate Tribunal.

(2) No person shall be appointed as a member of an Appellate Tri-

bunal unless he is or has been a Judge of a High Court.

(3) An Appellate Tribunal shall consist of as many members, not

being less than three and more than six, as the Central Government may

think fit.

(4) The Central Government shall appoint one of the members of

an Appellate Tribunal to be the President thereof.

(5) An Appellate Tribunal shall sit in its principal place of sitting

or any such other place or places as the President thereof may, from

time to time, appoint.

(6) The powers and functions of an Appellate Tribunal

may be

exercised and discharged by benches constituted by the President there-

of from amongst the members thereof and each bench shall consist of

not less than two members.

(7> The Central Government shall snake

available to every

Appeflate

Tribunal such staff as may be necessary for the discharges ot its functions

under this Act

(8) Every memorandum of appeal to an Appellate Tribunal shall be

made in such form and in such manner as may be prescribed, and, in

the case of an appeal preferred by an applicant under sub-section (2)

of section 8, shall also be accompanied by such fee, not being less than

twenty-five and more than one hundred rupees, as may be prescribed.

Rcferenco

»nd appli-

cation

to b»

disposed

of within

six mon-

ths.

AppeaL

Appellate

Tribunal.

BEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(9) Every appeal shall be preferred within thirty

days from

the

date on which the order sought to be appealed against was communi-

cated to the appellant:

Provided that the Appellate Tribunal may, if it is satisfied that the

appellant was prevented by sufficient cause from preferring the appeal

within the said period, admit an appeal after the expiry of the aforesaid

period of thirty days.

(10) Every Appellate Tribunal shall have the same powers as are

vested in a civil court under the Code of Civil Procedure, 1908, while

trying a suit, in respect of the following matters, namely: —

(a) summoning and enforcing the attendance of witnesses and,

examining them on oath;

(b) discovery and production of any document;

(d) requisitioning of public records from any court or office;

(e) issuing of any commission for the examination of witnesses.

16. (1) The Appellate Tribunal may, after giving the parties to the

appeal a reasonable opportunity of being heard, pass such orders thereon

as it may think fit, confirming, modifying or annulling the order appealed

against or may remand the case to the Tribunal which had passed such

order with such directions to that Tribunal as the Appellate Tribunal

may think fit, for fresh determination after taking additional evidence,

if necessary.

(2) Where an appeal had been heard by the Appellate Tribunal and

the members thereof differ in their opinion on any point, the decision on

such point shall, where there is a majority, be according to the opinion

of such majority, and where there is no majority and the members are

equally divided in their opinion, they shall draw up a statement of the

facts of the case and the point or points on which they differ in their

opinion and make a reference of the point or points or of the appeal, as

the case may be, to the President of such Tribunal, and on receipt of

such reference, the President of the Tribunal shall arrange for the hear-

ing of such point or points, or the appeal, by one or more of the members

of the Appellate Tribunal, and such point or points, or the appeal, as

the case may be, shall be decided according to the opinion of the majo-

rity of the members of the Appellate Tribunal, who have heard the

appeal, including those who had first heard it.

(3) The Appellate Tribunal shall send a copy of every order passed

by it under sub-section (1) to the parties to the appeal and to the Tri-

bunal concerned.

(4) Subject to the provisions of section 17, every order passed under

sub-section (1)T other than an order remanding the case, shall be final

and no order passed under that sub-section shall be called in question

in any court.

3 P1190I.

Ordar of

the Appel-

late Tri-

bunal.

THE GAZETTE OF INDIA EXTRAORDINARY

[PAHT H—

17. The High Court may call for the record of any case which has

been decided by the Appellate Tribunal situate within its local jurisdic-

tion, and if such Appellate Tribunal appears—

(a) to have exercised a jurisdiction not vested In it by law, or

(b) to have failed to exercise a jurisdiction so vested, or

with material irregularity,

the High Court may make such order in the case as it thinks fit:

Provided that the High Court shall not, under this section, vary or

reverse any order made or any order deciding an issue in the course of

a proceeding with respect to an appeal, except where—

(i) the order, if it had been made in favour of the party apply-

ing for revision, would have finally disposed of the proceeding, or

(ii) the order, if allowed to stand, would occasion a failure of

justice or cause irreparable injury to the party

against whom it

was made.

Explanation.—In

this section, the expression

"any case which has

been decided" includes any order made or any order deciding an Issue

In the course of a proceeding with respect to any appeal.

CHAPTER III

PROVISIONS APPLICABLE TO ALL TRIBUNALS

18. Subject to the provisions of this Act and the rules made there-

under, every Tribunal and every Appellate

Tribunal shall have the

power to regulate its own procedure in all matters arising out of

the

exercise of its powers or for the discharge of its functions.

19. Every proceeding before a Tribunal or the

Appellate Tribunal

shall be deemed to be a judicial proceeding within the meaning of sec-

tions 193 and 228, and for the purposes of section 196 of the Indian Penal

Code; and every such Tribunal or Appellate Tribunal, as the case may

be, shall be deemed to be a civil court for the

purposes of section 195

and Chapter XXVI of the Code of Criminal Procedure, 1973.

CHAPTER IV

ENFORCEMENT OF THE ORDERS MADE EY THE TRIBUNALS

20. Where a person has been- determined by a Tribunal, or, as

the

case may be, by the Appellate Tribunal to be an illegal

migrant, the

Central Government shall, by order served on such person, direct such

person to remove himself from India within such

time and by such

route as may be specified in the order and may give 3Uch further directions

in regard to his removal from India as it may

consider necessary or

expedient.

Revision.

Proce-

dure.

Proceeding

before

every

Tribunal

to bo

judicial

proceeding

for

certain

purposes.

Expulsion

of illegal

migrants.

45 of 1860.

2 of 1974.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

CHAPTER V

MISCELLANEOUS

21. The Central Government

may, by notification,

direct that the

powers and duties conferred or imposed on it by this Act, other than the

powers conferred lqy section 28, and the powers conferred by this section,

may, subject to such conditions as may be specified in the notification, be

exercised or discharged also by—

(a) any officer subordinate to the Central Government;

(b) any State Government or any officer

subordinate to that

Government.

22. Any authority empowered by or in pursuance of the provisions of

this Act to exercise any power, may, in addition to any

other action

expressly provided for in this Act, take, or cause to be taken, such steps,

and use, or cause to be used, such force, as may in its opinion be reason-

ably necessary for the effective exercise of such power.

23. Where a Tribunal or Appellate Tribunal has been established for

any area for the purpose of determining whether a person is or is not an

illegal migrant, no civil court shall have jurisdiction to entertain any ques-

tion relating to that matter in that area and no injunction or any other

order in respect of any action taken by, or before, the Tribunal or Appel-

late Tribunal in respect of that matter shall be granted or made by any

civil court.

24. Where in any suit or other legal proceeding pending, whether in a

civil court or in any Tribunal established under any other law for the

time being in force, immediately before the commencement of this Act, a

question arises as to whether a person is or is not an illegal migrant, such

court or Tribunal shall, without deciding such question, make an order

transferring such suit or other legal proceeding to the. Tribunal under this

Act within the territorial limits of whose jurisdiction such court or other

Tribunal is situate and on such transfer such question shall be dealt with

by such Tribunal in accordance with the provisions of this Act.

25. Any person who,—

(a) contravenes or attempts to contravene, or abets the contra-

vention of, any order made under section 20; or

(b) fails to comply with any direction given by any such order;

under section 20 or has failed to comply with any direction given by

any such order,

shall be punishable with imprisonment for a terra which may extend to

tixree years and shall also be liable to fine.

Delega-

tion Of

poweri.

Power to

give

effect

to the'

orders,

etc.

Bar of

jurisdiction

of civil

courts.

Transitory

provision.

Penaltiei,

THE GAZETTE OF INDIA EXTRAORDINARY

[PABT II—

26. No suit, prosecution or other legal proceeding shall lie against any

person for anything which is In good faith done or intended to be done

under this Act.

27. (1) If any difficulty arises in giving effect to t^e provisions of this

Act, the Central Government may, by order to be published in the Official

Gazette, make such provisions, not inconsistent with the provisions of

this Act, as appear to it to be necessary or expedient for removing the

difficulty:

Provided that no such order shall be made after the expiry of a period

of two years from the commencement of this Act.

(2) Every order made under this section shall, as soon as may be

after It is made, be laid before each House of Parliament.

28. (l) The Central Government may, by notification, make rules to

carry out the provisions of this Act.

(2) In particular and without prejudice to the generality of the fore-

going powers, such rules may provide for all or any of the following

matters, namely: —

(a) the' form and the manner in which an application may be

made and th e fee which shall accompany such application, as re-

" quired by sub-section (3) of section 8;

(b) the authority to be prescribed under section 11;

late Tribunal may be preferred and the fee which shall accompany

duch appeal, as required by sub-section (5) of section 15;

(d) any other matter which is required to be, or may be, pres-

cribed.

(-?) Every rule made by. the,Central Government under this Act shall

be laid, as soon as may be after it is made, before each House of Parlia-

ment, while it is in session, for a total period of thirty days which may

be comprised in one session or in two or more successive sessions, and

if, before the expiry of the session immediately following the session or

the successive sessions aforesaid, both Houses agree in making any modi-

fication in the rule or both Houses agree that the rule should not be made

the rule shall thereafter have effect only, in such modified form or be of

no effect, as the case may be; so, however, that any such modification or

annulment shajl be without prejudice to the validity of anything previ-

ously done under that rule.

29. (1) The Illegal Migrants (Determination

by Tribunals)

Ordi-

nance, 1983, is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken

under the said Ordinance shall be deemed to have been done or taken

under the corresponding provisions of this Act.

Protec-

tion of

action

taken in

good

faith.

Power to

remove

difficul-

ties.

Power

to mike

' rules.

Repeal

and

saving.

8 011983.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

STATEMENT OF OBJECTS AND RFASONS

The influx of foreigners who illegally migrated into India across the borders

of the sensitive eastern and north-eastern regions of the country and remained

in the country poses a threat to the integrity and scurity of the said regions.

A substantial number of such foreigners who migrated into India after the

25th day of March, 1971, have, by taking advantage of the circumstances of

such migration and their ethnic similarities and other connections with the

people of India, illegally remained in India without having in their possession

lawful authority so to do. The continuance of these persons in India has

given rise to serious problems. The clandestine manner in which these persons

have been trying to pass off as citizens of India has rendered their detection

difficult.

After taking into account the need for their speedy detection the

need for protection of genuine citizens of India and the interests of the general

public, the President promulgated, on the 15th October, 1983, the Illegal

Migrants (Determination by Tribunals) Ordinance, 1983, to provide for the

establishment of Tribunals.

2. The Ordinance provided for the establishment of Tribunals for the

determination, in a fair manner, of the question whether a person is an

illegal migrant. The definition

"illegal migrant",

provided in the

Ordinance, recognised the 25th March, 1971, as the cut off

date. The

Ordinance also empowered the Central Government to make a reference to

the Tribunal and also enabled private citizens to make applications to the

Tribunal for determining the question whether any person is an illegal migrant

as denned in the Ordinance. The Ordinance also made suitable provisions

for appeal, barring the jurisdiction of civil courts, and cxplusion of persons

found to be illegal migrants.

3. The Bill seeks to replace the Ordinance.

NEW DELHI;

P. C. SETHI.

The 9tH November, 1983.

PRESIDENT'S RECOMMENDATION UNDER ARTICLE 117 OF

THE CONSTITUTION OF INDIA

TCopy of letter No. 11012/129/83-NE. TV, dated the 12th November,

19K3 from Shri P. C. Sethi, Minister

Home Affairs

to the Secretary,

Lok Sabha.]

The President, having been informad of the subject matter of the Illegal

Migrants (Determination by fribuna|4) Bill, 1983 recommends the considera-

tion of the Bi]l in Lpk Sabha under qrtMe. 117(3) of the Constitution of India,,

I a

THE GAZETTE OF INDIA EXTRAOBDINARY

[PAST II—

FINANQIAL MEMORANDUM

Sub-clause (1) of clause 5 of the Bill provides for the establishment

o[ Illegal Migrants (Determination)

Tribunals by the Central Government

for the purpose of determining the question as to whether

a person

an illegal migrant.

Clause 7 provides for the appointment of staff of the

Tribunals. Sub-clause (1) of clause 15 provides for the establishment of

Illegal Migrants (Determination) Appellate Tribunal by the Central Govern-

ment for the purpose of deciding appeals preferred against orders made by

the Tribunals in the State. Sub-clause (7) or that clause provides for the

appointment of staff of the Appellate Tribunal. The above provisions,

enacted, would involve expenditure from the Consolidated Fund of India on

the following items, namely:—

(a) rocurrihg expenditure on salaries

and

allowances;

the

members of the Tribunals and the supporting staff and expenses

account

petrol,

oil

and lubricant for the conveyance, travelling

allowances,

rent for office and residential accommodation. Each Tri-

bunal shall have three members. All the members of the Tribunals shall

be either serving or retired District Judges or Additional District Judges;

(b) non-recurring

expenditure

account

furniture, office

equipment and a car for each Tribunal;

bers of the Appellate Tribunal and the supporting staff. The Appellate

Tribunal will have not less than three and more than six members, who

shall be either serving or retired Court Judges.

(d) non-recurring expenditure on account of furniture, office equip-

ment and conveyance of the Appellate Tribunal.

2. (i) The approximate recurring expenditure for setting up one Tribunal

is estimated to be Rs. 3,03,120 per annum. This includes expenditure on

salaries qf the members of the Tribunal, staff for the Tribunal, office expenses,

petrol, oil and lubricants, travelling allowances, rent for office and residential

accommodation.

(ii) The approximate non-recurring

expenditure

for

one Tribunal

estimated to be Rs. 1,20,900 per annum. This includes expenditure on

furniture, typewriter and car. As the establishment

twenty

Tribunals

in the State of Assam has been notified, the expenditure on Tribunals will be

as follows:—

Recurring

Rs. 60,62,400

Non-recurring

Rs. 24,18,000,

Sac. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

3. As the Bill seeks to provide that an Appellate Tribunal shall consist of

a minimum of three members, recurring expenditure 00 account of salaries of

the three members (including one Chairman) of the Appellate Tribunal, salaries

of staff for the Appellate Tribunal, office expenses, petrol, on and lubricants,

travelling allowances, rent for office and residential accommodation,

esti-

mated to be Rs, 3,61,320 per annum.

Non-recurring expenditure on account

of furniture, office icquipmcnts and conveyances for the Appellate Tribunal is

estimated to be Rs. 1,40,900 per annum.

On the assumption that one Appel-

late Tribunal would be set up for the State of Assam,

the

expenditure

Appellate Tribunal will be as follow~s~:—

Recurring

Rs. 3,61,320 per annum

Non-recurring

Rs. 1,40,900 per annum.

4. The Bill, if enacted, is not likely to involve any other recurring or non-

recurring expenditure.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 28 of the Bill empowers the Central Government to make rules

for carrying out the provisions of the proposed legislation. The matters in

respect of which such rules may be made arc specified in that clause. They,

inter alia, relate to the form and the manner in which an application may be

made and the fee which shall accompany such application,-the authority to be

prescribed under clause 11- and the form and the manner in which an appeal to

the Appellate Tribunal may be preferred and the fee which shall accompany

such appeal. The matters with respect to which rules may be made are matters

of procedure or detail.

2. The delegation of legislative power is, therefore, of a normal character.

MEMORANDUM INDICATING

THE MODIFICATIONS WHICH ARE

PROPOSED TO BE MADE BY THE BILL IN THE ILLEGAL MIGRANTS

(DETERMINATION BY TRIBUNALS) ORDINANCE, 1983

In clause 13 a modification has been provided that the period of six months

within which a reference made to the Tribunal shall be disposed of shall be

computed from the date on which a copy of the: said reference is served on the

person concerned for securing conformity with clause 10 of the Bill which pro-

vides lor serving of the copy of the reference itself.

2. Sub-clause (1) of clause 27 has been modified to include a time Hniit

beyond which it shall not be permissible to make any order for removing 'any

difficulty.

SEC. i]

THE GAZETTE OF INDIA EXTRAORt>INABY

BILL No. 118 OF 1983

A Bill to provide for the taking over iti the publid interest of the management of

the textile undertakings of he companies specified in the Ftrit Scheduled

pending nationalisation of such undertakings and for matters connected there-

yvith or incidental thereto.

WHEREAS by reason of mismanagement of the affairs of the textile under-

takings (specified in the First Schedule, their financial condition became wholly

unsatisfactory even before the commencement in January 1982 of the textile

strike in Bombay and¹*¹ their financial condition has thereafter further deterio-

rated;

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 neces-

sary 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 under-

takings is necessary to enable it to invest such large sums of money;

THE GAZETTE OF INDIA EXTRAORDINARY

[PAST tt—

AND WHEREAS, pending the acquisition of the said undertakings,

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 I

PRELIMINARY

1. (1) This Act may be called the Textile

Undertakings (Taking Over

of Management) Act, 1983.

(2) It shall be deemed to have come into force on the 18th day of October,

1983.

2. In this Act, unless the context otherwise requires,—

(a) "appointed day" means the date on which this Act comes into

force;

(b) "Custodian" means the person appointed under section 4 to take

over the management of the undertakings;

Gazette;

(d) "textile undertaking" or "tbe textile undertaking" means an under-

taking specified in the second column of the First Schedule;

in the Companies Act, 1956) specified in the third column of the First

Schedule, as owning the undertaking specified in the corresponding entry

in the second column of that Schedule;

(/) words and expressions used herein and not defined but defined in

the Companies Act, 1956, shall have the meanings respectively aligned

to them in that Act.

CHAPTER II

TAKING OVER OF THE MANAGEMENT OF CERTAIN TEXTILE UNDERTAKINGS

3. (1) On and from the appointed day, the management of all the textile

undertakings shall vest in the Central Government.

(2) The textile undertaking shall be deemed to include all assets, rights, lease-

holds, powers, authorities and privileges of the textile company in relation to th©

said textile undertaking and all property, movable and immovable, including

lands, buildings, workshops, projects, stores, spares, instruments, machinery,

equipment, automobiles and other vehicles, and goods under production or in

transit, cash balances, reserve fund, investments and book lets and all other¹

rights and interests in or arising out of sucb property as were, immediately before

the appointed day, in the ownership, possession, power or control of the textile

company whether within or outside India and all books of account, registers and,

all other documents of whatever nature relating thereto.

Short

title and

com-

mence-

ment.

Daflni-

ttoni.

Manage'

ment of

certain

textile

under-

takings

to vest in

the Cen-

tral Gov-

ernment.

1 of 1060.

1 of 1996.

Sit, 2J

THJfl GAZffilTfl OF INDIA EXTRAORDINARY

(3) Any contract, whether expiess or implied, 01 other arrangement, in 'so

iar as it relates to the managenieni 01 uie business and uttairs 01 mo textile un-

dertaKing ana in iorce unmeaiateiy beioic the appointed day, or any order made

by any court in so lai as n relates to me management ol Uie business and anairs

or me textile undertaking and in iorce uninediaiely beiore the appointed day

shall be deemed to have lermmated on me appointed day.

(•±) All persons m charge Oi tne management, including peisous holding

iiiiiccii m> ducccori, managers 01 any omei managerial personnel, 01 die texm©

company ni leiation to the textile undeitaiung, nnraeUiately beiore Uie appointed

uuy, suon be deemeu to have vacated men oiiices as inch on tne appointed day,

(P) iNoiwithstanuing anythmg comamed ia any other law lor the tiine being

in iorce no person in respect 01 whom any contract oi management or other

arrangement is ternnnatea by reason or the provisions contained in sub-section

t,jj, or who ceases to hold uny orhce by reason of. the provisions contained in

sub-section (V), shall be entitled to claim any compensation lor the premature

termination oi tne contract of management or other arrangement or lor the loss

oi ofhee, as the case may be.

ifii .Notwithstanding any judgment, deciee 01 order oi any court, tribunal

or other authority or anythmg contained

in any other law (.other than this

Act) lor the time being in Iorce, every receiver or other person in whose

possession or custody or under whose control the textile undeilaking or any part

thereol may be immediately beiore the appointed day, shall, on the commence-

ment oi this Act, deliver the possession ol the said

undertaking or such

pait thereof, as the case may be, to the Custodian, or where no Custodian has

been appointed, to such other person as the Central Government may direct.

(7) toi the removal of double, it is hereby declared that any liability incurred

by a textile company in relation to the textile undertaking beiore the appointed

day shall be ejilorceable against the concerned textile company and not against

the Central Government or the Custodian.

4. (ij The Central Government may, as soon as it is convenient administra-

tively so to do, appoint any person or body of persons (including a Government

company, whether in existence at the commencement of this Act or incor-

porated thereafter) as a Custodian of the textile undertalfing for the purpose of

carrying on the management of such undertaking and the Custodian so appointed

shall carry on the management of the textile undertaking tor and on behalf of the

Central Government.

(?) On the appointment of a Custodian under sub-section (1), the manage-

ment of the textile undertaking shall vest in such Custodian and all persons in

charge of the management of such undertaking immediately before such appoint-

ment shall cease to be in charge of such management and shall be bound to deliver

such management to the Custodian.

(3) The Central Government may, by notification, authorise the Custodian

to appoint any person (including a Government company, whether in existence

at the commencement of this Act or incorporated thereafter) as the Additional

Custodian of the textile undertaking.

(4) The Additional Custodian shall assist the Custodian in the exercise of

his or its powers and duties under this Act and shell function

under the

direction, supervision and control of th« Custodian; and the Custodian may

Custodian

of the

textile

under-

taking!.

THE GAZETTE uif INDIA EXTHAOKDINAhY.

|PAKX II—

delegate to the Additional Custodian ail or such of his or its powers as he or

it may think fit.

(5) Subject to any general or special direction given or condition imposed

Dy the Custodian, any peison authorised by the

Custodian to exeieisc any

power may exercise that power in the same manner ana widi tiic same ehect

as U it had been conferred on that person directly by ihis Act and not by way

of authorisation.

(6) The Central Government may issue such directions (including direc-

tions as to initiating, defending or continuing any legal proceedings before any

Luurt, tribunal or other authority) to the Custodian as to ins or its poweis

and duties as the Central Government deems to be desirable in the circum-

stances of the case, and the Custodian may also apply to the Central Govern-

ment at any time for instructions as to the manner in which he or it shall

conduct the management of the textile undertaking or in relation to any other

matter arising in the course of such management.

(7) Subject to the other provisions oi

this Act and the

control of

ibe Central Government, the Custodian shall be entitled, notwithstanding any-

thing contained in the Companies Act, 1956, to exercise all the powers, in

iviation to the textile undertaking, of the Board of Directors of the textile

company (Including the power to dispose of any properties or assets of the:

textile company) whether such powers are derived from the Companies Act,

1956, or from the memorandum and articles of association of the concerned

textile company or from any other source.

(#) Every person having possession, custody or control of any property

forming part of the textile undertaking shall deliver forthwith such property

co the Custodian or to any officer or other employee of the Central Government

or the Custodian, as may be authorised by the Central Government or the

Custodian in this behalf.

(9) Any person who, on the appointed day, has in his possession or under

his control any books, papers or other documents relating to the textile under-

taking the management of which has vested in the Oentral Government under

this Act, shall, notwithstanding

anything contained

hi any other law

for the time being in force, be liable to account for the books, papers and other

documents (including such minutes books, cheque books, letters, memoranda,

notes or other communications) to the Custodian and shall deliver them up to

Ihe Custodian or to any such person (being an officer or other employee of the

Central Government or the Custodian) as may be authorised by the Central

Government or the Custodian in this behalf.

(10) Every person in charge of the management of any textile undertaking

immediately before the appointed day shall, within ten days from that day or

within such further period as the Central Government may allow in this behalf,

furnish to the Custodian a complete inventory of all the properties and assets

(including particulars of book debts*and investments and belongings) forming

part of the undertaking immediately before the appointed day and of all the

liabilities and obligations of the textile company in relation to the under-

taking, subsisting immediately before that day, and also of all agree-

ments entered into by such textile company in relation to the under-

taking and in force immediately before that day.

1 of 1956.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

i 9

(11) The Custodian and the Additional Custodian shall receive from the

funds of the textile undertakings such remuneration as the Central Government

may fix.

5. (1) livery textile

company

shall be given by the Central

Govern-

ment an amount,

cash, and at th« rate specified

in sab-section

£)* for the nesting in It,

under section

3, of the

management of the

textile undertikirtfi¹ of the company.

(2) For every month during which the management of the textile under-

taking remains vested in the Central Government under this Act, the amount,

rcfeired to in sub-section (1), shall be computed—

(0 for a spinning unit, at the rate of fifty paise per 1,000 spindles

or any part thereof:

(K) for a wearing unit, at the rate of one rupee per 100 looms or

any part thereof;

(///) for a composite unit with or without dye-house, at the rate of

fifty paise per 1,000 spindles or any part thereof plus one rupee per 100

looms plus one paisa per 10,000 metres of cloth processed in the dye-

house based on the average monthly production during the period of three

years immediately preceding the appointed day;

(iv) for a wholly processing unit (being a unit which does not have

any spindle or loom), one paisa per one thousand square metres or any

part thereof of the average of the total quantity of textiles

processed

during the period of three years immediately preceding the appointed day

in such unit,

CHAPTER Til

POWER TO PROVIDE RELIEF TO THE TEXTILE UNDERTAKINGS

6. (1) The Central Government may, if satisfied, in relation to any of the

textile undertakings or any part thereof, the management of which has vested

in it under this Act, that it is necessary so to do in the interests of the

general public with a view to preventing any fall in the volume of production

of such undertaking, by notification, declare that—-

(a) all or any of the enactments specified in the Second Schedule

shall not apply or shall apply with such ndaptations, whether by way of

modification, addition or omission (which does not, however, affect the

policy of the said enactments) to such undertaking as may be specified!

in such notification or

(b) the operation

all or

any of the contracts, assurances of

property, agreements settlements, awards, standinc orders or other instru-

ments in force (to which such textile undertaking or th" textile com-

pany owning such undertakinc is a partv or which mnv be nnnlidable to

such textile undertime or textile commnv)

immediatciv

before

the

date of issue of the notification shall remain suspended or that all or any

of th° rights, privileges, obligations and liabilities accroine

arising

thereunder before the said dat* shall remain suspended or shall b- m-

forcenbio snbiet' to such adaptations and in such

manner ns mnv T*e

sT^nnd >n the notification,

Payment

amount.

Power

of the

Central

Govern-

ment to

make cer-

tain dec-""

larationg

in rela-

tion to

certain

textile"

under-

takings.

THE GAZETTE OF INDIA EXTRAOBDINAKY

[PART H—

(2) The notification made under sub-section (1) shall remain in force, in tho

first instance, for a period of one year but the duration of such notification may

be extended from time to timeJjy a further notification by a period not exceeding

one year, at a time:

Provided that no such notification shall, in any case, remain in force after

the expiry of three years from the commencement of this Act.

(3) Any notification made under sub-seetion (1) shall have effect notwith-

standing anything to the contrary contained in any other law, agreement of

instrument or any decree or order of a court, tribunal, officer or other authority

or in any submission, settlement or standing order.

(4) Where by virtue of a notification under clause (b) of sub-section (2),

any right, privilege, obligation or liability remains suspended or is enforceable

subject to the adaptations and in the manner specified in the notification, all

proceedings relating thereto pending before any court, tribunal, officer or other

authority shall accordingly remain stayed or be subject to such adaptations, as

the case may be; so however, on the notification ceasing to have effect—

(a) such right, privilege, obligation or liability shall be enforceable as

if the notification had never been made;

(6) any proceeding so remaining stayed shall be proceeded with sub-

ject to the provisions of any law which may be then in force, from the stage

which had been reached when the proceeding became stayed.

(5) In computing the period of limitation for the enforcement of any right,

privilege, obligation or liability referred to in clause (&) of sub-section (I), th«

period during which, it or the remedy for the enforcement thereof remained sus-

pended shall be excluded.

CHAPTER IV

MISCELLANEOUS

7. The provisions of this Act or any notification, order or rule made

thereunder shall have effect notwithstanding anything inconsistent therewith con-

tained in any law (other than this Act) or in any instrument having effect by

virtue of any law other than this Act or in any decree or order of any court.

8. (2) So long as the management of the textile undertaking »f a textile

company remains vested in the Central Government under this Act, notwith-

standing anything contained in the Companies Act, 1956 or

in the memo-

randum or articles of association of such company,—

(a) it shall not be lawful for the shareholders of the textile company

or any other person to nominate or appoint any person to be a Director of

such textile company in relation to suoh undertaking;

(6) no resolution affecting (whether directly or indirectly) such un-

dertaking which is passed at any meeting of the shareholders of the textil*

company on or after the appointed day shall be given effect to unless ap-

proved by the Central Government;

the appointment of a liquidator or receiver in respect thereof shall lie in

any court except with the consent of the Central Government,

Act to

have

over-

riding

effect.

Applica-

tion of

Act 1 of

1956.

Ssc. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

(2) Subject to the provisions contained in sub-section

(1), and to the

other provisions contained in this Act and subject to such other exceptions,

restriction and limitations, if any, as the Central Government may, by notifica-

tion, specify in this behalf, the Companies Act, 1956, shall continue to apply

to the textile companies in the same manneu as it applied thereto before the

appointed day.

9. In computing the period

of limitation prescribed by any law for the

dme being in force for any suit or application against any person by any of- the

textile companies in respect of any matter arising out of

any transaction in

relation to its textile undertaking, the time during which this Act remains

\n force shall be excluded.

10. (1) No suit, prosecution or other legal proceeding shall lie against the

Central Government or the Custodian or the Additional Custodian or any offi-

cer or other employee of the Central Government or the Custodian for any-

thing which is in good faith done or intended to be done under this Act.

(2) No suit or other legal proceeding shall lie against the Central Gov-

ernment or the Custodian or the Additional Custodian or any of the officers or

other employees of the Central Government or the Custodian for any damage

caused or likely to be caused by anything which is in good faith done or in-

tended to be done under this Act.

11. (7) If the Central Government is satisfied, after such inquiry as

may think proper, that any contract or agreement entered

into at any time

within three years immediately preceding the appointed day between any of

the textile companies or managing or other director of any such textile com-

pany and any other person in relation to any service, sale or supply to, or by,

its textile undertaking and in force immediately before the appointed day, kas

been entered into in bad faith, or is detrimental to the interests of the textile

undertaking of the concerned textile company, It may make, within one hun-

dred and eighty days from the appointed day, an order cancelling or

varying (either unconditionally or subject to such conditions as it may-

think fit to Impose) such contract or agreement and thereafter the con-

tract or agreement shall have effect accordingly:

Provided that no contract or agreement shall be cancelled¹ or varied ex-

cept after giving to the parties to the contract or agreement a reasonable op-

portunity of being heard.

(2) Any person aggrieved by an order made under sub-section

(I) may

make an application to the principal civil court of original jurisdiction within

the local limits of whose jurisdiction

the registered

office of the concerned

textile companv is situated for the variation or reversal of such order and

thereupon such court may confirm, modify oT reverse such order.

12. Any transfer of property, movable or immovable, or any delivery of

goods made by or on behalf of anv of the textile companies

(not being a

transfer or delivery made in the ordinary course of its business or in favour*

of a purchaser for valuable consideration and in good faith¹), if made within

a period of six months immediately preceding the appointed day, shall be

void against the Central Government or the Custodian, as the case may be.

1 *f 11)56.

Exclusion

of period

of opera-

tion of

thip Act

from

limita-

tion.

Protection

of action

taken in

good

faith.

Contracts,

etc., ia

bad faith

maybe

cancelled

or varied,

Avoid-

ance of

voluntary

trans-

fers.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART U—

13. If the Custodian is of opinion that any contract of employment entered

into by any textile company or managing or other director of the company

in relation to its textile undertaking at any time before the appointed day i^s

unduly onerous, he or it may, by giving to the employee one month's notice

in writing or salary or wages for one month in lieu thereof, terminate such

contract of employment.

14. (1) Any person who,—

(a) having in- his possession or custody'or under

his control any

property forming part

any

ot the textile undertakings, wrongfully

withholds such property from the Custodian or any

person

authorised

under this Act, or

(b) wrongfully obtains possession of any such property, or

taking or removes or destroys it, or

(d) wilfully withholds from, or fails to deliver to, the Custodian or

any person authorised under this Act,

any books,

papers

or other

documents relating to such textile undertaking which may be in his pos-

session, power or custody or under his control, or

(e) fails, without any reasonable excuse, to furnish information or

particulars as provided in section 4,

shall be punishable with imprisonment for a term which may extend to two

years, or with fine which may extend to ten thousand rupees, or with both.

(2) No count shall take cognizance of an offence punishable under

this

section except with the previous sanction of the Central- Government or an

officer authorised by that Government in this behalf.

15. (1) Where an offence under this Act has been committed by

company, every person who, at the time the offence was committed, was in

charge of, and was responsible to, the companv for the conduct of the busi-

ness of the company as well as the company, shall be deemed

to be

guilty of the offence and shall be liable to be proceeded against and

punished accordingly:

Provided that nothing contained in this sub-section shall render any such)

person liable to any punishment, if he proves that the offence was committed

without his knowledge and that he had exercised all due diligence to prevent

the commission of such offence.

' (2) Notwithstanding anything contained in sub-section (1), where an offen-

ce under this Act has been committed by a company and it is proved that the

offence has been committed with the consent or connivance of, or is attributable

to, any neglect on the part of any director, manager, secretary or other officer

of the company, such director, manaeer, secretary

or other officer shall be

deemed to be guilty of that offence and shall be liable to be proceeded attainst

and punished accordingly.

Explanation.—For the purposes of this section,—

(a) "company" means any body corporate and insludes a firm or

other association of individuals; and

(&) "director", in relation to a flrm, means a partner In the firm,

Power to

terminate

contracts

of em-

ployment.

Penalties

Offences

by com-

panies.

Sue. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

16. (I) The Central Government may, by notification, make rules for

carrying out the provisions of this Act.

(2) Every rule made by the Central Government

under this Act

shall

be laid, as soon as may bu after it is made, before each House of Parliament,

while it is in session, for a total period of thirty days which may be comprised

in one session or in two or more successive sessions, and if, before the expiry

of the session immediately following the session or the successive sessions

aforesaid, both Houses agree in making any modification in the rule or both

Houses agree that the rule should not be made, the rule shall thereafter

have

effect only in such modified (form or be of no effect, as' the case may be; so, how-

ever, that any such modification or annulment ghall be without prejudice to the

validity of anything previously done under that rule.

17. (1) The Textile Undertakings

(Taking Over of Management) Ordi-

nance, 1983, is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken

under the said Ordinance shall be deemed to have been done or taken undei

the corresponding provisions of this Act.

10 of 1983

Power to

make

rules.

Repeal

and

saving.

THE FIRST SCHEDULE

[See section 2 (d) and (c)]

I I

»3

No.

Name of the undertaking

Elphijifltonc Spinning and Weaving Mills, El-

phinstone Road, Bombay.

Finlay Milk, IO/II, Dr. S. S. Rao Road,

Bombay.

Gold Mohur Mills, Dadasaheb Phalkc Road,

Dadar, Bombay.

Jam Manufacturing Mills,

Lalbaug, Parcl,

Bombay.

Kohinoor Mills

(No. i),

Naigaum

Cross

Road, Dadar, Bombay.

Kohinoor Mills (No. a), Naigaum CrossRoad,

Dadar, Bombay.

Kohinoor Mills (No. 3),LadyJamshedjiRoad,

Dadar, Bombay.

New City of Bombay Manufacturing Mills,

63, Tukaram B. K^dam Marg, Bombay.

Podar Mills, N. M. Joshi Marg, Bombay.

Podar Milk (Process House}, GanpaL K.ao

Kadam Marg, Bombay.

Shree Madhusudan Mills, Pandurang Budhkar

Marg, Bombay.

Shree Sitaram Mills, N. M. Joehi Marg,

Bombay.

Tata Mills, Dr. Ambedkar Road, Dadar,

Bombay.

Name of the owner

The Elphinstone Spinning

and Weaving

Mills Co. Ltd., Kamani Chambers, 39,

Ramji Bhai Kamani Marg, Bombtty-38.

The Finlay Mills Ltd., Chartered Bank Buil-

ding, Fort, Bombay-23.

Tho Gold Mohur Mills Ltd., Chartered Bank

Building, Fort, Bombay-33.

The Jam Manufacturing Go. Ltd., Lal-

baug, Parel, Bombay-ia.

The Kohinoor Mills Go. Ltd., KiUick House,

Charanjit

Rai Marg

(Home Street),

For I, Bomhay-I.

The Kohinoor MUli, Go. Ltd., KiUick House,

Charanjit Rai Marg

(Home Street),

Fort, Bombay-1.

The Kohinoor Mills Co. Ltd., KiUick House,

Gharanjit Rai Marg

(Home Street),

Fort, Bombay-1.

The New City of Bombay Manufacturing

Go. Ltd., 63, Tukaram Bhisaji Kadam

Path Bombav-Q Q

The Podar Mills Ltd., Podar Chambers,

Syed Abdulla Brclvi Road, Fort, Bombay-1.

The Podar Mills Ltd., Podar

Chamber*,

Syed Abdulla Brclvi Road, Fort, Bombay-1.

Shree Madhusudan

Mill*

Ltd., 31,

Ghowringhee Road, Calcutta-16.

Shree Sitaram Mills Ltd., N, M. Jo»hi Marg,

Bombay-n.

The Tata Mills Ltd., Bombay Hotue, ,34,

Homi Mody Street, Fort, Bombay-33.

.SBC. 2]

THE'CtAZBTTi: OF INDIA EXTRAORDINARY

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

nationals.ition.

By reason-of mismanagement of the affairs of these under-

takings, their financial condition which became wholly unsatisfactory even before

the comixiuacement 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

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 em-

ployed therein and to augment the production and distribution at fair prices of

different Varieties of cloth antf yarn so as to subserve the interests of the general

public.

Government considered the nationalisation 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, &

genuine apprehension arose in Government's mind '.hat unless the management

of the concerned undertakings was taken over on immediate basis, there might

ba large scale frittering away of assets which would be detrimental to the public

interest.

Tt 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 repercus-

sions, the afore-mentioned Ordinance was promulgated.

2. The Bill seeks to replace the said Ordinance.

N E W DELHI;

VISHWANATH PRATAP SINGH.

The 12th November, 1983.

PRESIDENT'S RECOMMENDATION UNDER ARTICLE 117 OF

THE CONSTITUTION OF INDIA

[Copy of

letter

No. 7(5)/83-CP, dated the 15th November, 19R3

from

Shri Vishwunath Pratap Singh, Minister of Commerce to the Secretary, Lok

Sabha.]

The President having been informed of the subject matter

the Textile

Undertakings (Taking Over of Management) Bill, 1983, recommends

under

clause (1) of article 117 of the Constitution of India, the introduction of the

said Bill in Lok Sabha and also recommends under clause (3) of article 117,

the consideration of the Bill by Lok Sabha.

THE GAZETTE OF INDIA EXTRAORDINARY

[PABT ED-

FINANCIAL MEMORANDUM

Under the Textile Undertakings (Taking Over of Management) Bill, 1983,

powers are sought by the Central Government for continuing to manage

textile undertakings the management of which was taken over under th*

Textile Undertakings (Taking Over of Management) Ordinance, 1983, pending

their nationalisation.

2. Clause 5 of the Bill provides for the owner of every textile undertaking,

being given by

the Central Government

amount

in cash

for

the

vesting in it the management of the textile undertaking concerned.

However,

the amount so payable is not likely to exceed Rs. 30,000 per annum.

3. Money will have to be provided

to these mills for their working

capital as well as modernisation. The immediate requirement of funds for

working capital for these mills has been estimated at about Rs, 15 crores but

the requirements under this head in respect of the subsequent phases of run-

ning the units will be known only after watching the actual tempo of produc-

tion in the undertakings as and when it picks up. As regards the modernisation

requirements, it

ha>i been estimated that the funds required for not only

replacement or renovation of existing machinery, etc., but also adoption

more advanced technology in spinning, weaving and processing will be about

Rs. 140 crores spread over a period of

four

years commencing

from

- 1984-85.

4. As mentioned in the long title of the BilJ, the management af these mills

is to be taken over pending their nationalisation. The amounts to be so paid

have yet to be assessed.

5. The mills whose management has been taken over require modernisation

before they can become financially viable. During the initial period till the

modernisation programme is completed, the undertakings are liable to incur

losses, which have to be recouped by the Government. The exact quan-

tum of losses cannot be estimated at present.

Sue. 2]

THE GAZETTE OF INBLA EXTRAOBDINABY

a 7

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 16 of the Bill empowers the Central Government to

nfltoke

rules

\o carry out he provisions or the Bill.

Such power would enable the Central

Government

make rules with regard

matters

procedure

and

administrative detail, which is not practicable

provide

for in

the

Bill

itself.

The delegaion of legislative powti is, therefore, of a normal character.

AVTAR SINGH RIKHY,

Secretary^

PRINTED

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MANAGER,

GOVERNMENT

INDIA

PK1SS,

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CONTROLLER

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1983