[ 1933 ]

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La Gazette de L' État de Poudouchéry

The Gazette of Puducherry

PART - I

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EXTRAORDINAIRE

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7 {

No.

131

Poudouchéry

Mercredi

7

Août

2019 (16 Sravana 1941)

No.

Puducherry

Wednesday

7th

August

2019

GOVERNMENT OF PUDUCHERRY

LABOUR DEPARTMENT

No. 6323/AIL/Lab./T/2017/825.

Puducherry, the 7th August 2019.

ORDER

Whereas, the management of M/s. Anglo French Textiles Limited, Puducherry,

has submitted an application in Form O-3, dated 23-07-2019 to the Secretary to

Government, Labour Department, Puducherry, seeking permission for extension of

Lay-off for a period of 6 months from 21-07-2019 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;

1934

LA GAZETTE DE L’ETAT

[ PART-I

1934

Whereas, on perusal of the Lay-off application, dated 23-07-2019 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 order 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

i.e., minus ` 227.13 crores as on 31-3-2018 (Provisional) and no funds are

available even to meet the day-to-day expenses.

(iii) The Government has continuously providing funds to the Mill by way

of Share Capital and grant-in-aid. The Government has released

` 367.35 crores as Share Capital and ` 275.60 crores as Grant-in-aid up to

30-09-2018. 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 modernisation, 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’ Unit 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 Employee’s Provident Fund Authorities and the Employee’s State

Insurance Authorities started to proceed with the coercive action by freezing

Bank Accounts and attached the properties of Anglo-French Textiles. The

management had not settled the gratuity with interest to the tune of ` 44.63

crores for 945 employees as on 31-08-2019.

(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) Subsequently, High Level Meeting was held on 13-07-2017 with the

Managing Director, Anglo French Textiles and the Collector of Puducherry to

resolve the issues at hand. The District Collector, Villupuram has given

Attchment Notice for Pattanur Land vide No. 4/4622/2017, dated 05-09-2018

to execute the auction.

PART-I ]

LA GAZETTE DE L’ETAT

1935

online publication at “http://styandptg.puducherry.gov.in”

Published by The Director, Government Press

Printed at: Government Central Press, Puducherry.

Posted at: Puducherry HPO on every Tuesday

(xi) The management have settled the gratuity dues as per the order of

the Hon’ble High Court,Madras to 16 retired employees in May’ 2019 from

the grand-in-aid amount of ` 5,43,13,947 and the balance amount is going to

be utilized for payment of gratuity dues to the retired employees as per the

Certificate issued to the District Collector by the Controlling Authority under

the Payment of Gratutity Act, 1972. The Government of Puducherry has filed

reply affidavit before the Hon’ble High Court, Madras that all the gratuity

dues to the retired employees will be settled within 31st August 2019.

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 in respect of A, B, and C (except Spinning 'C' Unit) Units

for a further period of 6 months with effect from 21-07-2019.

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 21-07-2019.

P. JAWAHAR, I.A.S.,

Secretary to Government (Labour).

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