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The Industries Act, 1951

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THE INDUSTRIES (DEVELOPMENT AND REGULATION) ACT, 1951

[ACT 65 OF 1951 AS AMENDED UP TO ACT 4 OF 1986]2

[31st October, 1951]

CHAPTER I- PRELIMINARY

1. Short title extent and commencement

2. Declaration as to expediency of control by the Union

3. Definitions

4. [Repealed]

CHAPTER II-CENTRAL ADVISORY COUNCIL AND DEVELOPMENT COUNCILS

5. Establishment and constitution of Central Advisory Council and its functions

6. Establishment and constitution of Development Councils and their functions

7. Reports and accounts of Development Councils

8. Dissolution of Development Councils

9. Imposition of cess on scheduled industries in certain cases

CHAPTER III-REGULATION OF SCHEDULE INDUSTRIES

10.Registration of existing industrial undertakings

10-A. Revocation of registration in certain cases

11. Licensing of new industrial undertakings

11-A. Licence for producing or manufacturing new articles

11-B. Power of Central Government to specify the requirements which shall be complied with by small-scale industrial undertakings

12. Revocation and amendment of licences in certain cases

13. Further provision for licensing of industrial undertakings in special cases

14. Procedure for the grant of licence or permission

15. Power to cause investigation to be made into scheduled industries or industrial undertakings

15-A. Power to investigate into the affairs of a company in liquidation

16. Powers of Central Government on completion of investigation under Section 15

17. [Repealed]

18. Power of person or body of persons appointed under Section 15 or Section 15-A to call for assistance in any investigation

CHAPTER III-A- DIRECT MANAGEMENT OR CONTROL OF INDUSTRIAL UNDERTAKINGS BY CENTRAL GOVERNMENT CERTAIN CASES

18-A. Power of Central Government to assume management or control of an industrial undertaking in certain cases

18-AA. Power to take over industrial undertaking without investigation under certain circumstances

18-B. Effect of notified order under Section 18-A

18-C. Contracts in bad faith, etc., may be cancelled or varied

18-D. No right to compensation for termination of office or contract

18-E. Application of Act 7 of 1913

18-F. Power of Central to cancel notified order under Section 18-A

1. For Statement of Objects and Reasons, see Gazette of India. 1949, Pt. V, p. 156; and for Report of Select Committee, see ibid., Pt. V, pp. 103-112 and ibid., 1951, pt II, S. 2, PP. 709-713.

2. Act 4 of 1984 received the assent of the President on 21-3-1984 and deemed to come into force w.e.f. 12-1-1984.

CONTENTS

WHOLE DOCUMENT

SECTOR
CHAPTER I

CHAPTER II

CHAPTER III

CHAPTER III-A

CHAPTER III-AA

CHAPTER III-AB

CHAPTER III-AC

CHAPTER III-B

CHAPTER IV

Statement of Objects and Reasons

CHAPTER III-AA-MANAGEMENT OR CONTROL OF INDUSTRIAL UNDERTAKINGS OWNED BY COMPANIES IN LIQUIDATION

18-FA.

Power or Central Government to authorize, with the permission or the High Court, persons to take over management or control or industrial undertakings

CHAPTER III-AB- Power to provide relief to certain industrial undertaking

18-FB.

Power of Central Government to make certain declaration in relation to industries undertaking, the management or control of which has been taken over under Section 18-A, Section 18-AA or Section 18-FA

CHAPTER III-AC-Liquidation or Reconstruction of Companies

18-FC. Power of Central Government to call for report on the affaire and working of managed company

18-FD. Decision of Central Government in relation to managed company

18-FE. Provision where Government decides to follow the course of action specified in Section 18-FD (1)

18-FF. Provision where Government decides to follow the course of action specified in Section 18-FD (2)

18-FG. Preparation of inventory of assets and liabilities and list of members and creditors of managed company

18-FH. Stay of suit and other proceedings

CHAPTER III-B- CONTROL OF SUPPLY, DISTRIBUTION, PRICE, ETC., OF CERTAIN ARTICLES

18-G. Power to Control supply, distributors, price. etc., of certain articles

CHAPTER IV-MISCELLANEOUS

19. Power of inspection

20. General prohibition or taking over management control or industrial undertakings

21. Certain administrative Expenses of Development Councils to be paid from moneys provided by Parliament

22. Power or the Central Government to issue directions to Development Councils

23. Decision or Central Government final respecting certain matters

24. Penalties

24-A. Penalty for false statement

25. Delegation or powers

26. Power to issue directions

27. Cognizance or offences

28. Burden of proof in certain cases

29 Jurisdiction or Courts

29-A. Special provision regarding fines

29-B. Power to exempt in special cases

29-C. Protection or action taken under the Act

29-D. Debts incurred by the authorized person to have priority

30. Power to make rules

31. Application or other laws not barred

32. [Repealed]

THE FIRST SCHEDULE

THE SECOND SCHEDULE

THE THIRD SCHEDULE

An Act to Provide for the development and regulation of certain industries

Be it enacted by Parliament as follows:

STATEMENT OF OBJECTS AND REASONS.-

The object of this Bill is to provide the Central Government with the means of implementing their industrial policy which was announced in their Resolution No. 1(3)-44(13)-48, dated 6th April, 1948 and approved by the Central Legislature. The Bill brings under Central control the development and regulation of a number of important industries, The activities of which affect the country as a whole and the development or which must be governed by economic factors of all-India import. The planning of future development on sound and balanced lines is sought to be secured by the licensing of all new undertakings by the Central Government. The Bill confers on Government, power to make rules for the registration of existing undertakings, for regulating the production and development of the industries in the Schedule and for consultation with Provincial Government on these matters. Provision has also been made for the constitution of a Central Advisory Council, prior consultation with which will be obligatory before the Central Government takes certain measures such as the revocation of a licence or taking over the control and management of any industrial concern.

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