GOVERNMENT OF PUDUCHERRY
LABOUR DEPARTMENT
No. 6323/AIL/LAB/T/2015/1058.
Puducherry, the 15th July 2016.
ORDER
Whereas, the management of M/s. Anglo-French Textiles Limited,
Puducherry has submitted an application in Form O-3, dated 22-4-2016 to the
Secretary to Government, Labour Department, Puducherry seeking permission for
extension of lay-off for the period of 6 months from 21-7-2016 in respect of
A, B and C Units (Except ‘C’ Unit Spinning) under section 25-M of the Industrial
Disputes Act, 1947, read with rule 75(B) of the Industrial Disputes (Central)
Rules, 1957;
Whereas, the views/replies of the management, trade unions, Government
Pleader, High Court of Judicature at Madras and the relevant documents/issues
were examined earlier;
[ 1387 ]
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No.
104
Poudouchéry
Mercredi
20
Juillet
2016 (29 Asadha 1938)
No.
Puducherry
Wednesday
20th
July
2016
1388
LA GAZETTE DE L’ETAT
[ PART-I
Whereas, on perusal of the lay-off application, dated 22-4-2016 of the
management, it is observed that the management has stated various reasons for
seeking permission for the extension of lay-off such as:–
(i) The "Thane" cyclone had caused severe structural damage to Anglo-
French Textiles. Most of the buildings in 'A' Unit are declared unsafe for
use by the Inspector of Factories and orders was issued by them to prohibit
the entry of workers inside the campus which included spinning
preparatory and weaving preparatory besides the engineering department
which forced the management to discontinue the operations in these areas;
(ii) The net worth of the company has already been in the negative side
as on 31-3-2015 and no funds are available even to meet the day-to-day
expenses.
(iii) The Government has continuously provided funds to the Mill by
way of share capital and grant-in-aid. The Government has released
` 367.35 crores as share capital and ` 238.63 crores as grant-in-aid upto
31-3-2016. From the year 1985-1986 to 1992-93, the Pondicherry Textile
Corporation Limited had earned marginal profits and thereafter had started
incurring loss. The share capital and grant-in-aid released for the last
7 years by the Government of Puducherry has drastically declined.
(iv) The grant-in-aid released presently is adequate only to pay the
lay-off compensation and wages, and is not adequate to run the Mill fully.
(v) The machineries are very old and without modernization, it is
difficult to run the Mill effectively.
(vi) Labour unrest prevailing due to non-payment of statutory dues and
hence, without settling the dues no action can be taken to run the Mill.
In the present scenario, the production activities in the Anglo-French
Textiles could not be resumed till the weaving preparatory and warehouse
departments in 'A' Units are shifted to new building either in 'B' or 'C' Units
for which sufficient funds are required.
(vii) The company is in deep financial crisis with no liquid funds to meet
on its day-to-day operations.
(viii) The Employees' Provident Fund Authorities and the Exployees’
State Insurance Authorities started to proceed with the coercive action by
freezing Bank Accounts and attaching the properties of Anglo-French
Textiles. The management had not settled the gratuity with interest to
the tune of ` 41.49 crores for 1170 employees as on 31-1-2016.
(ix) The Inspector of Factories issued an order under section 40 (2) of
the Factories Act, 1948 to prohibit the use of buildings where spinning,
weaving, weaving preparatory, warehouse and engineering departments
of ‘A’ Unit are presently functioning as the buildings are in such conditions
which pose imminent danger to human life and safety.
(x) The Hon'ble High Court, Madras had passed a common order,
dated 21-12-2015 in Review Application No.107/2015 in W.P. No. 18277
of 2014 and Contempt Petition No. 428 of 2015 and M.P.No. 1 of 2015 in
Review Application No. 107/2015 and directed that the competent authority
is the District Collector for the payment of gratuity under the payment of Gratuity
PART-I ]
LA GAZETTE DE L’ETAT
1389
Act and the Pondicherry Textile Corporation shall sell the properties detailed
in the Government Memorandum under the supervision of the District
Collector.
(xi) As per the order passed by the Hon'ble High Court, Madras, the
Anglo-French Textiles shall sell the lands situated at (a) Pattanur land –
R.S. No. 47/3 to 171/pt. (GLR value – ` 71.70 crores); (b) Thengaithittu –
T.S. No. P/7/23 (GLR value – ` 1.05 crores); (c) Thirubhuvanai –
R.S. No. 116/1A (GLR value – ` 0.63 crore) totaling to ` 73.38 crores.
(xii) The Encumbrance Certificate has been received for Pattanur land
and the survey has been also completed. The Encumbrance Certificates
has been received for Thengaithittu Rice Mill Complex and Thirubuvanai
Ginning Factory. The Department of Revenue and Disaster Management
vide letter dated 30-3-2016 had advised to engage any retired Revenue
Official or PCS Officer with revenue background to co-ordinate the activities
of the corporation relating to the execution of the Hon'ble High Court Order
dated 21-12-2015 in W.P. No. 18277 of 2014 to conduct public auction.
Tender has been called for on 4-7-2016 for appointment of financial
consultant to conduct rapid financial study of techno-economic status of
the Corporation and the tender will be opened on 21-7-2016.
(xiii) The reason for lay-off is due to labour unrest prevailing for
non-payment of statutory dues and after settling the statutory dues
pertaining to the employees, the Mill will take necessary action to revive
the Mill, subject to receipt of the funds from the Government.
And whereas, the management has also stated that they re-started the
production activities in ‘C’ Unit spinning only for the time being and now they
have requested lay-off for a further period of 6 months with effect from 21-7-2016
(except spinning ‘C’ Unit);
Now, therefore, by virtue of the authority delegated vide G.O. Ms. No. 177/80-Lab.,
dated 1st September 1980 of the Labour Department to exercise the powers conferred
by the sub-section (1) of section 25-M of the Industrial Disputes Act, 1947
(Central Act 14 of 1947), the undersigned hereby decides to grant permission
sought by the management of M/s. Anglo-French Textiles, Puducherry, to lay-off
workmen as defined under section 2(s) of the Industrial Disputes Act, 1947
(Central Act 14 of 1947) in A, B, C (except spinning ‘C’ Unit) Units for a further
period of 6 months with effect from 21-7-2016.
R. MIHIR VARDHAN, I.A.S.,
Secretary to Government (Labour).
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