[1385]
GOVERNMENT OF PUDUCHERRY
LABOUR DEPARTMENT
No. 6323/AIL/Lab./T/2015/787.
Puducherry, the 29th June 2017.
ORDER
Whereas, the management of M/s. Anglo-French Textiles Limited,
Puducherry has submitted an application in Form O-3, dated 4-5-2017 to the
Secretary to Government, Labour Department, Puducherry, seeking permission
for extension of Lay-off for a period of 6 months from 21-7-2017 in respect of
A, B & 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;
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5{
No.
104
Poudouchéry
Mercredi
5
Juillet
2017 (14 Asadha 1939)
No.
Puducherry
Wednesday
5th
July
2017
LA GAZETTE DE L'ETAT
[PART - I
1386
Whereas, on perusal of the Lay-off application, dated 4-5-2017 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 AFT.
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-today 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 up to 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 Governnment 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 AFT 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 Employees’
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 ` 38.26 Crores
for 1001 employees as on 31-9-2016.
(ix) The Inspector of Factories issued an order under section 40 (2) of
the Factories Act, 1948 to prohibit the use of buildings were 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 Act and the
Pondicherry Textile Corporation shall sell the properties detailed in the
Government Memo. under the supervision of the District Collector.
PART - I]
LA GAZETTE DE L'ETAT
1387
(xi) As per the order passed by the Hon’ble High Court, Madras, the AFT
shall sell the lands situated at [a] Pattanur land -R.S. No. 47/3 to 171/pt.- (GLR
Value - ` 71.70 crores); [b] Thengathittu - T.S. No. P/7/23 (GLR Value - ` 1.05 crores):
[c] Thirubuvanai- R.S. No.116/1A (GLR Value - ` 0.63 crores) totalling to
` 73.38 crores.
(xii) The Encumbrance Certificate has been received for Pattanur land
and the survey has been also completed. The Encumbrance Certificates have 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 coordinate 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.
(xiii) The present status of the Corporation was reviewed by the
Government in May, 2016. It was suggested to conduct a rapid financial study of
the techno-economic status of the Corporation. The Contract for the rapid
financial study of the Corporation was awarded to ICRA, Noida fixing the date
of commencing the work on 29-8-2016. The ICRA Management Consulting
Services Limited has prepared a draft report and submitted the same on 21-9-2016
and requested the management to examine the report. The recommendations made
by ICRA in their reports were briefly mentioned in the Review Meeting, conducted
by Hon’ble Chief Minister on 8-4-2017. After detailed discussion, ICRA had been
advised to include in their report, the issue of settlement of liabilities under each
option suggested by them and also to report on the issue of high staff/worker
ratio. The final report of ICRA Management consulting Service Limited, Noida,
is submitted to the Government on 21-4-2017. After settling the statutory dues
pertaining to 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
21-7-2017 (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 workman 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 21-7-2017.
R. MIHIR VARDHAN, I.A.S.,
Secretary to Government (Labour).
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