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GOVERNMENT OF PUDUCHERRY

LABOUR DEPARTMENT

No. 6323/AIL/Lab./T/2017/43.

Puducherry, the 9th January 2020.

ORDER

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

has submitted an application in Form O-3, dated 16-12-2019 to the Secretary to

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

Lay-off for a period of 6 months from 21-01-2020 in respect of A, B and C Units

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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LA GAZETTE DE L’ETAT

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Whereas, on perusal of the Lay-off application, dated 16-12-2019 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 A.F.T.

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 ` 241.07 crores as on 31-3-2019 (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 ` 335.25 crores as Grant-in-aid up to

30-11-2019. 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 is 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

overall liabilities such as Gratuity, EPF, ESI and other liabilities are to the tune

of ` 252.49 crores.

(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 Government of Puducherry has released ` 45,11,44,841 for

settlement of gratuity to the retired employees as per the Order of the Hon’ble

High Court, Madras and necessary G.O. Rt. No. 14/DI&C (SW)/SI/2019-20,

dated 09-10-2019 has been issued in this regard.

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LA GAZETTE DE L’ETAT

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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

And whereas, the management has also stated that 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 now, they

have requested Lay-off in respect of A, B, and C Units for a further period

of 6 months with effect from 21-01-2020;

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 and C Units for a further period

of 6 months with effect from 21-01-2020.

ASHOK KUMAR,

Secretary to Government (Labour).

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