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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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No.
8
Poudouchéry
Mercredi
22
Janvier
2020 (2 Magha 1941)
No.
Puducherry
Wednesday
22nd
January
2020
2 6
LA GAZETTE DE L’ETAT
[ PART-I
26
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.
PART-I ]
LA GAZETTE DE L’ETAT
27
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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