INDUSTRIES (DEVELOPMENT AND REGULATION) ACT, 1951

65 of 1951

An Act to provide for the development and regulation of certain industries BE it enacted by Parliament as follows :-

SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT

(1) This Act may be called the Industries (Development and Regulation) Act, 1951.

(2) It extends to the whole of India¹[* * *].

(3) It shall come into force on such date¹as the Central Government may, by notification in the Official Gazette, appoint.

SECTION 02: DECLARATION AS TO EXPEDIENCY OF CONTROL BY THE UNION

It is hereby declared that it is expedient in the public interest that the Union should take under its control the industries specified in the First Schedule.

SECTION 03: DEFINITIONS

In this Act, unless the context otherwise requires,-

(a) "Advisory Council" means the Central Advisory Council established undersection 5-;

³[(aa)"ancillary industrial undertaking" means an industrial undertaking which, in accordance with the proviso to sub-section (1) ofsection 11B-and the requirements specified under that sub-section, is entitled to be regarded as an ancillary industrial undertaking for the purposes of this Act;]

⁴[(ab)] "current assets" means bank balances and cash and includes such other assets or reserves as are expected to be realised in cash or sold orconsumed within a period of not more than twelve months in the ordinary course of business, such as, stock -in-trade, amounts due from sundry debtors for sale of goods and for services rendered, advance tax payments and bills receivable, but does not include sums credited to a provident fund, a pension fund, a gratuity fund or any other fund for the welfare of the employees, maintained by a company owning an industrial undertaking;

⁷[(ac)] "current liabilities" means liabilities which must be met on demand or within a period of twelve months from the date they are incurred; and includes any current liability which is suspended undersection 18FB-;

(b) "Development Council" means a Development Council established undersection 6-;

⁶(bb) "existing industrial undertaking" means-

(a) in the case of an industrial undertaking pertaining to any of the industries specified in the First Schedule as originally enacted, an industrial undertaking which was in existence on the commence- ment of this Act or for the establishment of which effective steps had been taken before such commencement, and

(b) in the case of an industrial undertaking pertaining to any of the industries added to the First Schedule by an amendment thereof, an industrial undertaking which is in existence on the coming into force of such amendment or for the establishment of which effective steps had been taken before the coming into force of such amendment;]

⁷[(cc)"High Court" means the High Court having jurisdiction in relation to the place at which the registered office of a company is situate;]

(d) "industrial undertaking" means any undertaking pertaining to a scheduled industry carried on in one or more factories by any person or authority including Government;

⁸[(dd) "new article", in relation to an industrial undertaking which is registered or in respect of which a licence or permission has been issued under this Act, means- 

(a) any article, which falls under an item in the First Schedule other than the item under which articles ordinarily manufactured or produced in the industrial undertaking at the date of registration or issue of the licence or permission, as the case may be, fall;

(b) any article which bears a mark as defined in the Trade Marks Act, 1940,⁹or which is the subject of a patent, if at the date of registration or issue of the licence or permission, as the case may be, the industrial undertaking was not manufacturing or producing such article bear- ing that mark or which is the subject of the patent;]

(e) "notified order" means an order notified in the Official Gazette;

(f) "owner" in relation to an industrial undertaking, means the person who, or the authority which, has the ultimate control over the affairs of the undertaking, and where the said affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent shall be deemed to be the owner of the undertaking;

(g) "prescribed" means prescribed by rules made under this Act;

(h) "Schedule" means a Schedule to this Act;

(i) "Scheduled industry" means any of the industries specified in the First Schedule;

¹⁰(j) "small scale industrial undertaking" means an industrial undertaking which, in accordance with the requirements specified under sub-section (1) of section IIB, is entitled to be regarded as a small scale industrial undertaking for the purposes of this Act;]

¹¹[(k)] words and expressions used herein but not defined in this Act and defined in theCompanies Act, 1956 (1 of 1956)-, have the meanings respectively assigned to them in that Act.

SECTION 04: SAVING

¹²[Omitted by the Industries (Development and Regulation) Amendment Act, 1953, w.e.f. 1-10-1953.}

SECTION 05: ESTABLISHMENT AND CONSTITUTION OF CENTRAL ADVISORY COUNCIL AND ITS FUNCTIONS

(1) For the purpose of advising it on matters concerning the development and regulation of scheduled industries, the Central Government may, by notified order, establish a Council to be called the Central Advisory Council.

(2) The Advisory Council shall consist of a Chairman and such other members not exceeding thirty in number, all of whom shall be appointed by the Central Government from among persons who are in its opinion capable of represent- ing the interests of- 

(a) owners of industrial undertakings in scheduled industries;

(b) persons employed in industrial undertakings in scheduled industries;

(c) consumers of goods manufactured or produced by scheduled industries;

(d) such other class of persons including primary producers, as in the opinion of the Central Government, ought to be represented on the Advisory Council.

(3) The term of office of, the procedure to be followed in the discharge of their functions by, and the manner of filling casual vacancies among members of the Advisory Council, shall be such as may be prescribed.

(4) The Central Government shall consult the Advisory Council in regard to- 

(a) the making of any rules, other than the first rules to be made under subsection (3);

(b)¹³[* * *] and may consult the Advisory Council in regard to any other matter connected with the administration of this Act in respect of which the Central Government may consider it necessary to obtain the advice of the Advisory Council.

SECTION 06: ESTABLISHMENT AND CONSTITUTION OF DEVELOPMENT COUNCILS AND THEIR FUNCTIONS

(1) The Central Government may, by notified order, establish for any scheduled industry or group of scheduled industries, a body of persons to be called a Development Council which shall consist of members who in the opinion of the Central Government are- 

(a) persons capable of representing the interests of owners of industrial undertakings in the scheduled industry or group of scheduled industries;

(b) persons having special knowledge of matters relating to the technical or other aspects of the scheduled industry or group of scheduled industries;

(c) persons capable of representing the interests of persons employed in industrial undertakings in the scheduled industry or group of scheduled industries;

(d) persons not belonging to any of the aforesaid categories, who are capable of representing the interests of consumers of goods manufactured or produced by the scheduled industry or group of scheduled industries.

(2) The number and the term of office of, and the procedure to be followed in the discharge of their functions by, and the manner of filling casual vacancies among members of a Development Council, shall be such as may be prescribed.

(3) Every Development Council shall be, by virtue of this Act, a body corporate by such name as may be specified in the noticed order establishing it, and may hold and transfer property and shall by the said name sue and be sued.

(4) A Development Council shall perform such functions of a kind specified in the Second Schedule as may be assigned to it by the Central Government and for whose exercise by the Development Council it appears to the Central Government expedient to provide in order to increase the efficiency or productivity in the scheduled industry or group of scheduled industries for which the Development Council is established, to improve or develop the service that such industry or group of industries renders or could render to the community, or to enable such industry or group of industries to render such service more economically.

(5) A Development Council shall also perform such other functions as it may be required to perform by or under any other provision of this Act.

SECTION 07: REPORTS AND ACCOUNTS OF DEVELOPMENT COUNCILS

(1)A Development Council shall prepare and transmit to the Central Government and the Advisory Council annually a report setting out what has been done in the discharge of its functions during the financial year last completed.

(2) The report shall include a statement of the accounts of the Development Council for that year, and shall be transmitted as soon as accounts therefor have been audited, together with a copy of any report made by the auditors on the accounts.

(3) The statement of accounts shall be in such form as may be prescribed, being a form which shall conform to the best commercial standards, and the statement shall show the total of remuneration and allowances paid during the year to members and officers of the Council.

(4) A copy of each such report of a Development Council, or made by the auditors on its accounts, shall be laid before Parliament by the Central Government.

SECTION 08: DISSOLUTION OF DEVELOPMENT COUNCILS

(1) The Central Government may, if it is satisfied that a Development Council should cease to continue in being, by notified order, dissolve that Development Council.

(2) On the dissolution of a Development Council under sub-section (1), the assets of the Development Council, after its liabilities, if any, are met therefrom, shall vest in the Central Government for the purposes of this Act.

SECTION 09: IMPOSITION OF CESS ON SCHEDULED INDUSTRIES IN CERTAIN CASES

(1) There may be levied and collected as a cess for the purposes of this Act on all goods manufactured or produced in any such scheduled industry as may be specified in this behalf by the Central Government by notified order a duty of excise at such rate as may be specified in the notified order, and different rates may be specified for different goods or different classes of goods: Provided that no such rate shall in any case exceed 13 paise per cent of the value of the goods.

(2) The cess shall be payable at such intervals, within such time and in such manner as may be prescribed, and any rules made in this behalf may provide for the grant of a rebate for prompt payment of the cess.

(3) The said cess may be recovered in the same manner as an arrear of land revenue.

(4) The Central Government may hand over the proceeds of the cess collected under this section in respect of the goods manufactured or produced by any scheduled industry or group of scheduled industries to the Development Council established for that industry or group of industries, and where it does so, the Development Council shall utilise the said proceeds- 

(a) to promote scientific and industrial research with reference to the scheduled industry or group of scheduled industries in respect of which the Development Council is established;

(b) to promote improvements in design and quality with reference to the products of such industry or group of industries;

(c) to provide for the training of technicians and labour in such industry or group of industries;

(d) to meet such expenses in the exercise of its functions and its administrative expenses as may be prescribed.

SECTION 10: REGISTRATION OF EXISTING INDUSTRIAL UNDERTAKINGS

¹⁸[(1) The owner of every existing industrial undertaking, not being the Central Government, shall, within such period as the Central Government may, by notification in the Official Gazette, fix in this behalf with respect to industrial undertakings generally or with respect to any class of them, register the undertaking in the prescribed manner.]

(2) The Central Government shall also cause to be registered in the same manner every existing industrial undertaking of which it is the owner.

¹⁹(3) Where an industrial undertaking is registered under this section, there shall be issued to the owner of the undertaking or the Central

Government, as²⁰the case may be, a certificate of registration²⁰ [containing the productive capacity of the industrial undertaking and such other particulars as may be prescribed.]]

²⁰[(4) The owner of every industrial undertaking to whom a certificate of registration has been issued under this section before the commencement of the Industries (Development and Regulation) Amendment Act, 1973, shall, if the undertaking falls within such class of undertakings as the Central Govern- ment may, by notification in the Official Gazette, specify in this behalf, produce, within such period as may be specified in such notification, the certificate of registration for entering therein the productive capacity of the industrial undertaking and other prescribed particulars.

4(5) In specifying the productive capacity in any certificate of registration issued under sub-section (3), the Central Government shall take into consideration the productive or installed capacity of the industrial undertaking as specified in the application for registration made under sub-section ( 1), the level of production immediately before the date on which the application for registration was made under sub-section (1), the level of the highest annual production during the three years immediately preceding the introduction in Parliament of the Industries (Development and Regulation) Amendment Bill, 1973, the extent to which production during the said period was utilised for export and such other factors as the Central Government may consider relevant including the extentof under-utilisation of capacity, if any, during the relevant period due to any cause.]

SECTION 10A: REVOCATION OF REGISTRATION IN CERTAIN CASES

If the Central Government is satisfied that the registration of any industrial undertaking has been obtained by misrepresentation as to an essential fact or that any industrial undertaking has ceased to be registrable under this Act by reason of any exemption granted under this Act becoming applicable thereto or that for any other reason the registration has become useless or ineffective and therefore requires to be revoked, the Central Government may after giving an opportunity to the owner of the undertaking to be heard revoke the registration.]

SECTION 11: LICENSING OF NEW INDUSTRIAL UNDERTAKINGS

(1) No person or authority other than the Central Government, shall, after the commencement of this Act, establish any new industrial undertaking, except under and in accordance with a licence issued in that behalf by the Central Government: Provided that a Government other than the Central Government may, with the previous permission of the Central Government, establish a new industrial undertaking.

(2) A licence or permission under sub-section (1) may contain such conditions including, in particular, conditions as to the location of the undertaking and the minimum standards in respect of size to be provided therein as the Central Government may deem fit to impose in accordance with the rules, if any, made undersection 30-.

SECTION 11A: LICENCE FOR PRODUCING OR MANUFACTURING NEW ARTICLES

The owner of an industrial undertaking not being the Central Govern- ment which is registered undersection 10-or in respect of which a licence or permission has been issued undersection 11-shall not produce or manufac- ture any new article linless-

(a) in the case of an industrial undertaking registered undersection 10-, he has obtained a licence for producing or manufacturing such new article; and

(b) in the case of an industrial undertaking in respect of which a licence or permission has been issued undersection 11-, he has had the existing licence or permission amended in the prescribed manner.]

SECTION 11B: POWER OF CENTRAL GOVERNMENT TO SPECIFY THE REQUIREMENTS WHICH SHALL BE COMPLIED WITH BY SMALL SCALE INDUSTRIAL UNDERTAKINGS

(1) The Central Government may, with a view to ascertaining which ancillary and small scale industrial undertakings need supportive measures, exemptions or other favourable treatment under this Act to enable them to maintain their viability and strength and so as to be effective in :-

(a) promoting in a harmonious manner the industrial economy of the coun- try and easing the problem of unemployment, and

( b) securing that the ownership and control of the material resources of the community are so distributed as best to subserve the common good, specify, having regard to the factors mentioned in sub-section (2) by notified order the requirements which shall be complied with by an industrial under- taking to enable it to be regarded for the purposes of this Act, as an ancillary, or a small scale industrial undertaking and different requirements may be so specified for different purposes or with respect to industrial undertakings engaged in the manufacture or production of different articles : Provided that no industrial undertaking shall be regarded as an ancillary industrial undertaking unless it is, or is proposed to be, engaged in :- 

(i) the manufacture of parts, components, sub-assemblies, toolings or inter - mediates; or

(ii) rendering of services, or supplying or rendering, not more than fifty per cent of its

production or its total services, as the case may be, to other units for production of other articles.

(2) The factors referred to in sub-section (1) are the following namely :- 

(a) the investment by the industrial undertaking in :-  (i) plant and machinery, or (ii) land, buildings, plant and machinery; (b) the nature of ownership of the industrial undertaking;

(c) the smallness of the number of workers employed in the industrial undertaking;

(d) the nature, cost and quality of the product of the industrial undertaking;

(e) foreign exchange, if any, required for the import of any plant or machinery by the industrial undertaking; and

(f) such other relevant factors as may be prescribed.

(3) A copy of every notified order proposed to be made under sub-section (1) shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the proposed notified order or both Houses agree in making any modification in the proposed notified order, the notified order shall not be made, or, as the case may be, shall be made only in such modified form as may be agreed upon by both the Houses.

(4) Notwithstanding anything contained in sub-section (1), an industrial undertaking which, according to the law for the time being in force, fell, immediately before the commencement of the Industries (Development and Regulation) Amendment Act, 1984, under the definition of an ancillary, or small scale industrial undertaking, shall, after such commencement, continue to be regarded as an ancillary, or small scale industrial undertaking for the purposes of this Act until the definition aforesaid is altered or superseded by any notified order made under sub- section (1).]

SECTION 12: REVOCATION AND AMENDMENT OF LICENCES IN CERTAIN CASES

(1) If the Central Government is satisfied, either on a reference made to it in this behalf or otherwise, that any person or authority, to whom or to which, a licence has been issued undersection 11-, has, without reasonable cause, failed to establish or to take effective steps to establish the new industrial undertaking in respect of which the licence has been issued within the time specified therefor or within such extended time as the Central Government may think fit to grant in any case, it may revoke the licence.

(2) Subject to any rules that may be made in this behalf, the Central Government may also vary or amend any licence issued undersection 11-: Provided that no such power shall be exercised after effective steps have been taken to establish the new industrial undertaking in accordance with the licence issued in this behalf.

²⁴[(3) The provisions of this section shall apply in relation to a licence issued under section 11 A-or where alicence has been amended under that section, to the amendment thereof, as they apply in relation to a licence issued undersection 11-.]

SECTION 13: FURTHER PROVISION FOR LICENSING OF INDUSTRIAL UNDERTAKINGS IN SPECIAL CASES

(1) No owner of an industrial undertaking, other than the Central Government, shall- 

(a) in the case of an industrial undertaking required to be registered undersection 10-, but which has not been registered within the time fixed for the purpose under that section, carry on the business of that under taking after the expiry of such period, or

(b) in the case of an industrial undertaking the registration in respect of which has been revoked under section10A-²⁶[* * *] carry on the business of the undertaking after the revocation, or

(c) in the case of an industrial undertaking to which the provisions of this Act did not originally apply but became applicable after the commencement of this Act for any reason, carry on the business of the undertaking after the expiry of three months from the date on which the provisions of this Act became so applicable, or

(d) effect any substantial expansion of an industrial undertaking which has been registered²⁷[or in respect of which a licence or permission has been issued], or

(e) change the location of the whole or any part of an industrial undertaking which has been registered, except under, and in accordance with, a licence issued in that behalf by the Central Government, and, in the case of a State Government, except under and in accordance with the previous permission of the Central Government.

(2) The provisions of sub-section (2) ofsection 11-and ofsection 12-shall apply, so far as may be, in relation to the issue of licences or permissions to any industrial undertaking referred to in this section as they apply in relation to the issue of licences or permissions to a new industrial undertaking. Explanation: For the purposes of this section, 'substantial expansion' means the expansion of an existing industrial undertaking which substantially increases the productive capacity of the undertaking, or which is of such a nature as to amount virtually to a new industrial undertaking, but does not include any such expansion as is normal to the undertaking having regard to its nature and the circumstances relating to such expansion.]

SECTION 14: PROCEDURE FOR THE GRANT OF LICENCE OR PERMISSION

Before granting any licence or permission under²⁷[section 11-,section 11 A-, 3[section 13-orsection 29B-]], the Central Government may require such officer or authority as it may appoint for the purpose, to make a full and complete investigations in respect of applications received in this behalf, and report to it the result of such investigation and in making any such investigation, the officer or authority shall follow such procedure as may be prescribed.

SECTION 15: POWER TO CAUSE INVESTIGATION TO BE MADE INTO SCHEDULED INDUSTRIES OR INDUSTRIAL UNDERTAKINGS.

Where the Central Government is of the opinion that-

(a) in respect of any scheduled industry or industrial undertaking or undertakings- 

(i) there has been, or is likely to be, a substantial fall in the volume of production in respect of any article or class of articles relatable to that industry or manufactured or produced in the industrial under- taking or undertakings, as the case may be, for which, having Regard to the economic conditions prevailing, there is no justification; or

(ii) there has been, or is likely to be, a marked deterioration in the quality of any article or class of articles relatable to that industry or manufactured or produced in the industrial undertaking or Under-takings, as the case may be, which could have been or can be avoided; or

(iii) there has been or is likely to be a rise in the price of any article or class of articles relatable to that industry or manufactured or produced in the industrial undertaking or undertakings, as the case may be, for which there is no justification; or

(iv) it is necessary to take any such action as is provided in this Chapter for the purpose of conserving any resources of national importance which are utilized in the industry or the industrial undertaking or undertakings, as the case may be; or

²⁹[(b) any industrial undertaking is being managed in a manner highly detrimental to the scheduled industry concerned or to public interest;] the Central Government may make or cause to be made a full and complete investigation into the circumstances of the case by such person or body of persons as it may appoint for the purpose.

SECTION 15A: POWER TO INVESTIGATE INTO THE AFFAIRS OF A COMPANY IN LIQUIDATION

(1) Where a company, owning an industrial undertaking is being wound up by or under the supervision of the High Court, and the business of such company is not being continued, the Central Government may, if it is of opinion that it is necessary, in the interest of the general public and, in particular in the interests of production, supply or distribution of articles or class of articles relatable to the concerned scheduled industry, to investigate into the possibility of running or restarting the industrial undertaking, make an application to the High Court praying for permission to make, or cause to be made, an investigation into such possibility by such person or body of persons as that Government may appoint for the purpose.

(2) Where an application is made by the Central Government under subsection (1), the High Court shall, notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), or in any other law for the time being in force, grant the permission prayed for.]

SECTION 16: POWERS OF CENTRAL GOVERNMENT ON COMPLETION OF INVESTIGATION UNDER SECTION 15

(l) lf after making or causing to be made any such investigation as is referred to insection 15-the Central Government is satisfied that actionunder this section is desirable, it may issue such directions to the industrial undertaking or undertakings concerned as may be appropriate in the circumstances for all or any of the following purposes, namely :- 

(a) regulating the production of any article or class of articles by the industrial undertaking or undertakings and fixing the standards of production;

(b) requiring the industrial undertaking or undertakings to take such steps as the Central Government may consider necessary, to stimulate the development of the industry to which the undertaking or undertakings relates or relate;

(c) prohibiting the industrial undertaking or undertakings from resorting to any act or practice which might reduce its or their production, capacity or economic value;

(d) controlling the prices, or regulating the distribution, of any article or class of articles which have been the subject-matter of investigation.

(2) Where a case relating to any industry or industrial undertaking or undertakings is under investigation, the Central Government may issue at any time any direction of the nature referred to in sub-section (1) to the industrial undertaking or undertakings concerned, and any such direction shall have effect until it is varied or revoked by the Central Government.

SECTION 17: SPECIAL PROVISIONS FOR DIRECT CONTROL BY CENTRAL GOVERNMENT IN CERTAIN CASES

³⁰[Omitted by the Amendment Act, 1953, w.e.f. 1-10-1953.]

SECTION 18: POWER OF PERSON OR BODY OF PERSONS APPOINTED UNDER SECTION 15

³²[or section 15A ] to call for assistance in any investigation

(1) The person or body of persons appointed to make any investigation undersection 15-³²[or section 15A] may choose one or more persons possessing special knowledge of any matter relating to the investigation to assist him or it in holding the investigation.

(2) The person or body of persons so appointed shall have all the powers of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of taking evidence on oath (which he or it is hereby empowered to administer) and of enforcing the attendance of witnesses and compelling the production of documents and material objects, and the person or body of persons shall be deemed to be a Civil Court for all the purposes of section 195 and Chapter XXXV of the Code of Criminal Procedure, 1898 (5 of 1898).

SECTION 18A: POWER OF CENTRAL GOVERNMENT TO ASSUME MANAGEMENT OR CONTROL OF AN INDUSTRIAL UNDERTAKING IN CERTAIN CASES

(1) If the Central Government is of opinion that - (a) an industrial undertaking to which directions have been issued in pursuance ofsection 16-has failed to comply with such directions, or (b) an industrial undertaking in respect of which an investigation has been made undersection 15-(whether or not any directions have been issued to the undertaking in pursuance ofsection 16-), is being managed in a manner highly detrimental to the scheduled industry concerned or to public interest,the Central Government may, by notified order, authorise any person or body of persons to take over the management of the whole or any part of the undertaking or to exercise in respect of the whole or any part of the undertaking such functions of control as may be specified in the order.

(2) Any notified order issued under sub-section (1) shall have effect for

such period not exceeding five years as may be specified in the order :³⁵ [Provided that if the Central Government is of opinion that it is expedient in the public interest that any such notified order should continue to have effect after the expiry of the period of five years aforesaid, it may from time to time issue directions for such continuance for such period, not exceeding two years at a time, as may be specified in the direction, so however that the total period of such continuance (after the expiry of the said period of five years) does not exceed2[twelve years]; and where any such direction is issued, a copy there of shall be laid, as soon as may be, before both Houses of Parliament.]

SECTION 18AA: POWER TO TAKE OVER INDUSTRIAL UNDERTAKINGS WITHOUT INVESTIGATION UNDER CERTAIN CIRCUMSTANCES

(1) Without prejudice to any other provision of this Act, if, from the documentary or other evidence in its possession, the Central Government is satisfied, in relation to an industrial undertaking, that - 

(a) the persons in charge of such industrial undertaking have, by reckless investments or creation of encumbrances on the assets of the industrial undertaking, or by diversion of funds, brought about a situation which is likely to affect the production of articles manufactured or produced in the industrial undertaking, and that immediate action is necessary to prevent such a situation; or

(b) it has been closed for a period of not less than three months (whether by reason of the voluntary winding up of the company owning the industrial undertaking or for any other reason) and such closure is prejudicial to the concerned scheduled industry and that the financial condition of thecompany owning the industrial undertaking and the condition of the plant and machinery of such undertaking are such that it is possible to restart the undertaking and such restarting is necessary in the interests of the general public, it may, by a notified order, authorise any person or body of persons (hereafter referred to as the "authorised person") to take over the management of the whole or any part of the industrial undertaking or to exercise in respect of the whole or any part of the undertaking such functions of control as may be specified in the order.

(2) The provisions of sub-section (2) ofsection 18A-shall, as far as may be, apply to a notified order made under sub-section (1) as they apply to a notified order made under sub-section (1) of section 15A.

(3) Nothing contained in sub-section (1) and sub-section (2) shall apply to an industrial undertaking owned by a company which is being wound up by or under the supervision of the court.

(4) Where any notified order has been made under sub-section (1), the person or body of persons having, for the time being, charge of the management or control of the industrial undertaking, whether by or under the orders of any court or any contract, instrument or otherwise, shall, notwithstanding anything contained in such order, contract, instrument or other arrangement, forthwith make over the charge of management or control, as the case may be, of the industrial undertaking to the authorised person.

(5) The provisions ofsections 18B to 18E-(both inclusive) shall, as far as may be, apply to, or in relation to, the industrial undertaking, in respect of which a notified order has been made under sub-section (1), as they apply to an industrial undertaking in relation t0 which a notified order has been issued undersection 18A-.]

SECTION 18B: EFFECT OF NOTIFIED ORDER UNDER SECTION 15A

(1) On the issue of a notified order undersection 18A-authorising the taking over of the management of an industrial undertaking - 

(a) all persons in charge of the management, including persons holding office as managers or directors of the industrial undertaking immediately before the issue of the notified order, shall be deemed to have vacated their offices as such;

(b) any contract of management between the industrial undertaking and any managing agent or any director thereof holding office as such immedia- tely before the issue of the notified order shall be deemed to have been terminated;

(c) the managing agent, if any, appointed undersection 18A-shall be deemed to have been duly appointed as the managing agent in pursuance of theIndian Companies Act, 1913 (7 of 1913), and the memorandum and articles of association of the industrial undertaking, and the provisions of the said Act and of the memorandum and articles shall, subject to the other provisions contained in this Act, apply accordingly, but no such managing agent shall be removed from office except with the previous consent of the Central Government;

(d) the person or body of persons authorised undersection 18A-to take over the management shall take all such steps as may be necessary to take into his or their custody or control all the property, effects and actionable claims to which the industrial undertaking is or appears to be entitled, and all the property and effects of the industrial undertaking shall be deemed to be in the custody of the person or, as the case may be, the body of persons as from the date of the notified order; and

(e) the persons, if any, authorised undersection I8A-to take over the management of an industrial undertaking which is a company shall be for all purposes the directors of the industrial undertaking duly constituted under the Indian Companies Act, 1913 (7 of 1913) and shall alone be entitled to exercise all the powers of the directors of the industrial undertaking, whether such powers are derived from the said Act or from the memorandum or articles of association of the industrial undertaking or from any other source.

(2) Subject to the other provisions contained in this Act and to the control of the Central Government, the person or body of persons authorised to take over the management of an industrial undertaking, shall take such steps as may be necessary for the purpose of efficiently managing the business of the industrial undertaking and shall exercise such other powers and have such other duties as may be prescribed.

(3) Where any person or body of persons has been authorised to exercise any functions of control in relation to an industrial undertaking, the undertaking shall be carried on pursuant to any directions given by the authorised person in accordance with the provisions of the notified order, and any person having any functions of management in relation to the undertaking or part thereof shall comply with all such directions.

(4) The person or body of persons authorised under section³⁷[18A] shall, notwithstanding anything contained in the memorandum or articles of associ- ation of the industrial undertaking, exercise his or their functions in accordance with such directions as may be given by the Central Government so, however, that he or they shall not have any power to give any other person any directions under this section inconsistent with the provisions of any Act or instrument determining the functions of the authorities carrying on the undertaking except insofar as may be specifically provided by the notified order.

SECTION 18C: CONTRACTS IN BAD FAITH, ETC., MAY BE CANCELLED OR VARIED

Without prejudice to the provisions contained in section 18B, the person or body of persons authorised undersection I8A-to take over the management of an industrial undertaking may, with the previous approval of the Central Government, make an application to any Court having jurisdiction in this behalf for the purpose of cancelling or varying any contract or agreement entered into, at any time before the issue of the notified order .undersection I8A-, between the industrial undertaking and any other person and the Court may, if satisfied after due inquiry that such contract or agreement had been entered into in bad faith and is detrimental to the interests of the industrial undertaking, make an order cancelling or varying (either unconditionally or subject to such conditions as it may think fit to impose) that contract or agreement, and the contract or agreement shall have effect accordingly.

SECTION 18D: NO RIGHT TO COMPENSATION FOR TERMINATION OF OFFICE OR CONTRACT

Notwithstanding anything contained in any law for the time being in force, no person who ceases to hold any office by reason of the provisions contained in clause (a) ofsection 18B-, or whose contract of management is terminated by reason of the provisions contained in clause (b) of that section, shall be entitled to any compensation for the loss of office or for the premature termination of his contract of management : Provided that nothing contained in this section shall affect the right of any such person to recover from the industrial undertaking moneys recoverable other wise than by way of such compensation

SECTION 18E: APPLICATION OF ACT 7 OF 1913

(1) Where the management of an industrial undertaking, being a company as defined in the Indian Companies Act, 1913 (7 of 1913), is taken over by the Central Government, then, notwithstanding anything con- tained in the said Act or in the memorandum or articles of association of such undertaking,- 

(a) it shall not be lawful for the shareholders of such undertaking or any other person to nominate or appoint any person to be a director of the undertaking;

(b) no resolution passed at any meeting of the shareholders of such undertaking shall be given effect to unless approved by the Central Government;

(c) no proceeding for the winding up of such undertaking or for the appointment of a receiver in respect thereof shall lie in any Court except with the consent of the Central Government.

(2) Subject to the provisions contained in sub-section (1), and to the other provisions contained in this Act and subject to such other exceptions, restrictions and limitations, if any, as the Central Government may, by notification inthe Official Gazette, specify in this behalf, the Indian Companies Act, 1913 (7 of 1913), shall continue to apply to such undertaking in the same manner as it applied thereto before the issue of the notified order under section 18A.]

SECTION 18F: POWER OF CENTRAL GOVERNMENT TO CANCEL NOTIFIED ORDER UNDER SECTION 18A

If at any time it appears to the Central Government on the application of the owner of the industrial undertaking or otherwise that the purpose of the order made undersection 18A-has been fulfilled or that for any other reason it is not necessary that the order should remain in force, the Central Government may, by notified order, cancel such order and on the cancellation of any such order the management or the control, as the case may be, of the industrial undertaking shall vest in the owner of the undertaking.]

SECTION 18FA: POWER OF CENTRAL GOVERNMENT TO AUTHORISE, WITH THE PERMISSION OF THE HIGH COURT, PERSONS TO TAKE OVER MANAGEMENT OR CONTROL OF INDUSTRIAL UNDERTAKINGS

(1) If the Central Government is of opinion that there are possibilities of running or re-starting an industrial undertaking, in relation to which an investigation has been made undersection I5A-, and that such industrial undertaking should be run or re-started, as the case may be, for maintaining or increasing the production, supply or distribution of articles or class of articles relatable to the scheduled industry, needed by the general public, that Government may make an application to the High Court praying for permission to appoint any person or body of persons to take over the management of the industrial undertaking or to exercise in respect of the whole or any part of the industrial undertaking such functions of control as may be specified in the application.

(2) Where an application is made under sub-section (1), the High Court shall make an order empowering the Central Government to authorise any person or body of persons (hereinafter referred to as the 'authorised person') to take over the management of the industrial undertaking or to exercise functions of control in relation to the whole or any part of the industrial undertaking (hereinafter referred to as the 'concerned part') for a period not exceeding five years: Provided that if the Central Government is of opinion that it is expedient in the interests of the general public that the authorised person should continue to manage the industrial undertaking, or continue to exercise functions of control in relation to the concerned part, as the case may be, after the expiry of the

period of five years afocesaid, it may make an application to the High Court for the continuance of such management or functions of control, for such period, not exceeding two years at a time, as may be specified in the application and thereupon the High Court may make an order permitting the authorised person to continue to manage the industrial undertaking or to exercise functions of control in relation to the concerned part : Provided further that the total period of such continuance (after the expiry of the initial period of five years) shall not, in any case, be permitted to exceed ⁴¹[twelve years].

(3) Where an order has been made by the High Court under sub-section (2), the High Court shall direct the Official Liquidator or any other person having, for the time being, charge of the management or control of the industrial under taking, whether by or under the orders of any Court, or any contract or instrument or otherwise, to make over the management of such undertaking or the concerned part, as the case may be, to the authorised person and thereupon the authorised person shall be deemed to be the Official Liquidator in respect of the industrial undertaking or the concerned part, as the case may be.

(4) Before making over the possession of the industrial undertaking or the concerned part to the authorised person, the Official Liquidator shall make a complete inventory of all the assets and liabilities of the industrial undertaking or the concerned part, as the case may be, in the manner specified insection 18FG-and deliver a copy of such inventory to the authorised person, who shall, after verifying the correctness thereof, sign on the duplicate copy thereof as evidence of the receipt of the inventory by him.

(5) On taking over the management of the industrial undertaking, or on the commencement of the exercise of functions of control in relation to the concerned part, the authorised person shall take immediate steps to so run the industrial undertaking or the concerned part as to ensure the maintenance of production.

(6) The authorised person may, on such terms and conditions and subject to such limitations or restrictions as may be prescribed, raise any loan for the purpose of running the industrial undertaking or the concerned part, and may, for that purpose, create a floating charge on the current assets of the industrial undertaking or the concerned part, as the case may be.

(7) Where the authorised person is of opinion that the replacement or repair of any machinery of the industrial undertaking or the concerned part is necessary for the purpose of efficient running of the industrial undertaking or such part, he shall, on such terms and conditions and subject to such limitations- or restrictions as may be prescribed, make such replacement or repair, as the case may be.

(8) The loan obtained by the authorised person shall be recovered from the assets of the industrial undertaking or the concerned part, in such manner and subject to such conditions as may be prescribed.

(9) For the purpose of running the industrial undertaking, or exercising functions of control in relation to the concerned part, the authorised person may employ such of the former employees of the industrial undertaking whose services became discharged by reason of the winding up of the company owning such undertaking and every such person employed by the authorised person shall be deemed to have entered into a fresh contract of service with the company.

(10) The proceedings in the winding up of the company in so far as they relate to-

(a) the industrial undertaking, the management of which has been taken over by the authorised person under this section, or

(b) the concerned part in relation to which any function of control is exercised by the authorised person under this section, shall, during the period of such management or control, remain stayed, and, in computing the period of limitation for the enforcement of any right, privilege, obligation or liability in relation to such undertaking or the concerned part, the period during which such proceedings remained stayed shall be excluded.]

SECTION 18FB: POWER OF CENTRAL GOVERNMENT TO MAKE CERTAIN DECLARATIONS IN RELATION TO INDUSTRIAL UNDERTAKINGS, THE MANAGEMENT OR CONTROL OF WHICH HAS BEEN TAKEN OVER UNDER SECTION I8A, SECTION 18AA OR SECTION 18FA

(1) The Central Government may, if it is satisfied, in relation to an industrial undertaking or any part thereof, the management or control of which has been taken over under section I8A, whether before or after the commencement of the Industries (Development and Regulation) Amendment Act, 1971, or undersection 18AA-orsection 18FA-, that it is necessary so to do in the interests of the general public with a view to preventing fall in the volume of production of any scheduled industry, it may, by notified order, declare that- 

(a) all or any of the enactments specified in the Third Schedule shall not apply or shall apply with such adaptations, whether by way of modification, addition or omission (which does not, however, affect the policy of the said

enactments) to such industrial undertakings, as may be specified in such notified order, or

(b) the operation of all or any of the contracts, assurances of property, agreements, settlements, awards, standing orders or other instruments in force (to which such industrial undertaking or the company owning such undertaking is a party or which may be applicable to such industrial undertaking or company) immediately before the date of issue of such notified order shall remain suspended or that all or any of the rights, privileges, obligations and liabilities accruing or arising thereunder before the said date,

shall remain suspended or shall be enforceable with such adaptations and in such manner as may be specified in the notified order.

(2) The notified order made under sub-section (1) shall remain in force, in the first instance, for a period of one year, but the duration of such notified order may be extended from time to time by a further notified order by a period not exceeding one year at a time: Provided that no such notified order shall, in any case, remain in force - 

(a) after the expiry of the period for which the management of the industrial undertaking was taken over undersection I8A-,section 18AA-orsection 18FA, or

(b) for more than⁴³[eight years] in the aggregate from the date of issue of the first notified order, whichever is earlier.

(3) Any notified order made under sub-section (1) shall have effect notwith standing anything to the contrary contained in any other law, agreement or instrument or any decree or order of a Court, Tribunal, officer or other authority or of any submission, settlement or standing order.

(4) Any remedy for the enforcement of any right, privilege, obligation or liability referred to in clause (b) of sub-section (1) and suspended or modified by a notified order made under that sub-section shall, in accordance with the terms of the notified order, remain suspended or modified, and all proceedings relating thereto pending before any Court, Tribunal, officer or other authority shall accordingly remain stayed or be continued subject to such adaptations, so, however, that on the notified order ceasing to have effect  

(a) any right, privilege, obligation or liability so remaining suspended or modified shall become revived and enforceable as if the notified order had never been made;

(b) any proceeding so remaining stayed shall be proceeded with, subject to the provisions of any law which may then be in force, from the stage which had been reached when the proceedings became stayed.

(5) In computing the period of limitation for the enforcement of any right, privilege, obligation or liability referred to in clause (b) of sub-section (1), the period during which it or the remedy for the enforcement thereof remained suspended shall be excluded.]

SECTION 18FC: POWER OF CENTRAL GOVERNMENT TO CALL FOR REPORT ON THE AFFAIRS AND WORKING OF MANAGED COMPANY

Where the management or control of an industrial undertaking has been taken over undersection I8A, whether before or after the commencement of the Industries (Development and Regulation) Amendment Act, 1971, or undersection 18AAorsection 18FA, the Central Government may, at any time during the continuance of such management or control, call for a report from the authorised person on the affairs and working of the industrial undertaking and in submitting the report the authorised person shall take into account the inventory and the lists of members and creditors prepared under section 18FG.

SECTION 18FD: DECISION OF CENTRAL GOVERNMENT IN RELATION TO MANAGED COMPANY

(1) If, on receipt of the report submitted by the authorised person, the Central Government is satisfied,- 

(a) in relation to the company owning the industrial undertaking, which is not being wound up by the High Court, that the financial condition and other circumstances of the company are such that it is not in a position to meet its current liabilities out of its current assets, that Government may, if it considers necessary or expedient in the interests of the general public so to do, by order, decide that the industrial undertaking should be sold as a running concern as provided insection 18FEand proceedings should simultaneously be started for the winding up, by the High Court, of the company;

(b) in relation to the company, owning the industrial undertaking, which is being wound up by the High Court, that its assets and liabilities are such that in the interests of its creditors and contributories the industrial undertaking should be sold as a running concern as provided insection 18FE, it may, by order, decide accordingly.

(2) Notwithstanding anything contained in sub-section (1), if, on receipt of the report submitted by the authorised person, the Central Government is satisfied that- 

(a) in the interests of the general public, or

(b) in the interests of the shareholders, or

(c) to secure the proper management of the company owning the industrial undertaking, it is necessary so to do, that Government may, by order, decide to prepare a scheme for the reconstruction of the company owning the industrial undertaking: Provided that no such scheme shall be prepared in relation to a company which is being wound up by or under the supervision of the High Court, except with the previous permission of that Court.

(3) The powers exercisable by the Central Government undersection 18F, in relation to an undertaking taken over undersection I8A, shall also be exercis able in relation to an undertaking taken over undersection 18AAorsection 18FA, but such powers shall not be exercised after the making of an order under sub -section (1) or, as the case may be, under sub-section (2) of this section.

SECTION 18FE: PROVISIONS WHERE GOVERNMENT DECIDES TO FOLLOW THE COURSE OF ACTION SPECIFIED IN SECTION 18FD(1)

(1) The provisions hereinafter laid down shall apply where the Central Government decides that the course of action specified in sub -section. (1) ofsection 18FDshould be followed, namely :- 

(a) the decision of the Central Government that the course of action specified in clause (a) of sub-section (1) ofsection 18FDshould be followed in relation to a company owning an industrial undertaking shall be deemed to be a ground specified insection 433 of the Companies Act, 1956 (1 of 1956)-on which the company may be wound up by the High Court;

(b) the authorised person shall, as soon as may be, after the decision specified in clause (a) of sub-section (1) ofsection 18FDhas been taken by the Central Government, present an application to the High Court for the winding up of the company owning the industrial undertaking;

(c) when an application is made by the authorised person, under clause (b), for the winding up, by the High Court, of the company owning the industrial undertaking, the High Court shall order the winding up of the company and shall, notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), appoint the authorised person as the official liquidator in relation to such undertaking;

(d) whenever the Central Government decides under clause (b) of sub- section

(1) ofsection 18FDthat the industrial undertaking should be sold as a running concern, it shall cause a copy of its decision to be laid before the High Court;

(e) until the industrial undertaking referred to in clause (a) or clause (b) of sub-section (1) ofsection 18FDis sold or purchased in pursuance of this section, the authorised person shall continue to function as the Official Liquidator in relation to the said undertaking in the winding up proceedings of the company, and, thereafter the Official Liquidator appointed by the Central Government undersection 448 of the Companies Act, 1956(1 of 1956)-, shall take over and function as the Official Liquidator in the said proceedings.

(2) The authorised person shall make a report to the Central Government as to what should be the reserve price for the sale of the industrial undertaking as a running concern.

(3) In making a report under sub-section (2), the authorised person shall have regard to- 

(a) the financial condition of the company owning the industrial undertaking on the date on which the order undersection 18FDis made- 

(i) as disclosed in its books of account;

(ii) as disclosed in its balance sheet and profit and loss account during a period of five years immediately preceding the said date;

(b) the condition and nature of the plant, machinery, instruments and other equipment from the point of view of their suitability for profitable use in the running of the industrial undertaking;

(c) the total amount of liability on account of secured and unsecured debts including overdrafts, if any, drawn on banks, liabilities on account of terminal benefits to the employees and other borrowings and other liabilities of the company; and

(d) other relevant factors including the factor that the industrial under taking will be sold free from all encumbrances.

(4) Notice of the reserve price determined by the authorised person shall be given in such manner as may be prescribed to the members and creditors of the company owning such industrial undertaking to make representations within a specified time to the Central Government through the authorised person and the Central Government shall, after considering the representations received and the report of the authorised person, determine the reserve price.

(5) The authorised person shall thereafter, with the permission of the High Court, invite tenders from the public in such manner as may be determined by the High Court for the sale of the industrial undertaking as a running concern subject to the condition that it will be sold to the person offering the highest price which shall not be less than the reserve price determined under sub-section (4): Provided that the High Court shall not refuse to grant such permission if it is satisfied that the company is not in a position to meet its current liabilities out of its current assets.

(6) The industrial undertaking shall be sold to the highest bidder, as a running concern, only if the price offered by him therefore is not less than the reserve price.

(7) Where no offer of price is equal to, or more than, the reserve price, the industrial undertaking shall be purchased by the Central Government at the reserve price.

(8)(a) The amount realised from the sale of the industrial undertaking as a running concern together with any other sum which may be realised from any contributory, purchaser or any other person from whom any money is due to the company shall be utilised in accordance with the provisions of the Companies Act, 1956 (I of 1956), in discharging the liabilities of the company and distributing the balance, if any, amongst the members of the company. (b) In other respects, the provisions of the Companies Act, 1956 (I of 1956), relating to the winding up of a company by the High Court shall, as far as may be, apply.

(9) When an industrial undertaking is sold to any person under sub-section (6),or purchased by the Central Government under sub-section (7), there shall be transferred to and vested in the purchaser, free from all encumbrances, all such assets relating to the industrial undertaking as are referred to in sub-clause (i)of clause (a) ofsection 18FGand existing at the time of the sale or purchase.

SECTION 18FF: PROVISIONS WHERE GOVERNMENT DECIDES TO FOLLOW THE COURGE OF ACTION SPECIFIED IN SECTION 18FD(2)

(1) Where in any case the Central Government decides that the course of action specified in sub-section (2) ofsection 18FDshould be fol- lowed, it shall, subject to the provisions of that sub-section, cause to be prepared, by the authorised person, a scheme for the reconstruction of the company, owning the industrial undertaking, in accordance with the provi- sions hereinafter contained and the authorised person shall submit the same for the approval of that Government.

(2) The scheme for the reconstruction of the company owning the industrial undertaking may contain provisions for all or any of the following matters, namely:- 

(a) the constitution, name and registered office, the capital, assets, powers, rights, interests, authorities and privileges, the liabilities, duties and obligations of the company on its reconstruction;

(b) any change in the board of directors, or the appointment of a new board of directors of the company on its reconstruction and the authority by whom, the manner in which and the other terms and conditions on which, such change or appointment shall be made and in the case of appointmentof a new board of directors or of any director, the period for which such appointment shall be made;

(c) the vesting of controlling interest, in the reconstructed company, in the Central Government either by the appointment of additional directors or by the allotment of additional shares;

(d) the alteration of the memorandum and articles of association of the company, on its reconstruction, to give effect to such reconstruction;

(e) subject to the provisions of the scheme, the continuation by or against the company, on its reconstruction, of any action or proceedings pending against the company immediately before the date of its reconstruction;

(f) the reduction of the interest or rights which the members and creditors have in or against the company before its reconstruction to such extent as the Central Government may consider necessary in the interests of general public or in the interests of the members and creditors or for the maintenance of the business of the company: Provided that nothing contained in this clause shall be deemed to authorise the reduction of the interest or rights of any creditor (including Govern- ment) in respect of any loan or advance made by that creditor to the company after the date on which the management of the industrial undertaking of the company has been taken over undersection I8A,section 18AA, orsection 18FA;

(g) the payment in cash or otherwise to the creditors in full satisfaction of their claim- 

(i) in respect of their interest or rights in or against the company before its reconstruction; or

(ii) where their interest or rights in or against the company has or have been reduced underclause (f), in respect of such interest, or rights as so reduced;

(h) the allotment to the members of the company for shares held by them therein before its reconstruction [whether their interest insuch shares has been reduced under clause (f) or not], of shares in the company on its reconstruction and where it is not possible to allot shares to any members, the payment in cash to those members in full satisfaction of their claim- 

(1) in respect of their interest in shares in the company before its reconstruction; or

(2) where such interest has b,een reduced under clause (f), in respect of their interest in shares as so reduced;-

(i) the offer by the Central Government to acquire by negotiations with the members of the company their respective shares on payment in cash to those members who may volunteer to sell their shares to the Central Government in full satisfaction of their claim- 

(1) in respect of their interest in shares in the company before its reconstruction; or

(2) where such interest has been reduced under clause (f), in respect of their interest in shares as so reduced;

(j) the conversion of any debentures issued by the company after the taking over of the management of the company undersection 18A orsection 18AAorsection 18FAor of any loans obtained by the company after that date or of any part of such debentures or loans, into shares in the company and the allotment of those shares to such debenture holders of creditors, as the case may be;

(k) the increase of the capital of the company by the issue of new shares and the allotment of such new shares to the Central Government;

(l) the continuance of the services of such of the employees of the company as the Central Government may specify in the scheme in the company itself, on its reconstruction, on such terms and conditions as the Central Government thinks fit;

(m) notwithstanding anything contained in clause ( /), where any employees of the company whose services have been continued under clause (/) have, by notice in writing given to the company at any time before the expiry of one month next following the date on which the scheme is sanctioned by the High Court, intimated their intention of not becoming employees of the company, on its reconstruction, the payment to such employees and to other employees whose services have not been continued on the reconstruction of the company, of compensation, if any, to which they are entitled under the Industrial Disputes Act, 1947 (14 of 1947), and such pension, gratuity, provident fund and other retirement benefits ordinarily admissible to them under the rules or authorisation of the company immediately before the date of its reconstruction;

(n) any other terms and conditions for the reconstruction of the company;

(o) such incidental, consequential and supplemental matters as are necessary to secure that the reconstruction of the company shall be fully and effectively carried out.

(3) (a) A copy of the scheme, as approved by the Central Government, shall be sent in draft to the company, to the registered trade unions, if any, of which the employees of the company are members and to the creditors thereof for suggestions and objections, if any, within such period as the Central Government may specify for this purpose. (b) The Central Government may make such modifications, if any, in the draft scheme as it may consider necessary in the light of the suggestions and objections received from the company, from the registered trade unions of which the employees of the company are members and from any members or creditors of the company.

(4) The scheme shall thereafter be placed before the High Court for its sanction and the High Court, if satisfied that the scheme is in the interests of the general public or in the interests of the shareholders or for securing the proper management of the company and that the scheme is designed to be fair and reasonable to the members and creditors of the company, may, after giving a reasonable opportunity to the company and to its members and creditors of showing cause, sanction the scheme without any modification or with such modifications as it may consider necessary.

(5) The Scheme, as so sanctioned by the High Court, shall come into force on such date as that Court may specify in this behalf: Provided that different dates may be specified for different provisions of the scheme.

(6) The sanction accorded by the High Court under sub-section (4) shall be conclusive evidence that all the requirements of this section relating to the reconstruction of the company have been complied with, and a copy of the sanctioned scheme certified by the High Court to be a true copy thereof, shall, in all legal proceedings (whether original or in appeal or otherwise), be admitted as evidence to the same extent as the original scheme.

(7) On and from the date of the coming into operation of the scheme or any provision thereof, the scheme or such provision shall be binding on the company and also on all the members and other creditors and employees of the company and on any other person having any right or liability in relation to the company.

(8) On the coming into operation of the scheme or any provision thereof, the authorised person shall cease to function, and the management of the reconstructed company shall be assumed by the board of directors as provided in the scheme.

(9) Copies of the scheme shall be laid before each House of Parliament, as soon as may be, after the scheme has been sanctioned by the Court.

(10) The provisions of this section and of any scheme made thereunder shall have effect notwithstanding anything contained insections 391 to 394A (both inclusive) of the Companies Act, 1956 (1 of 1956)-.]

SECTION 18FG: PREPARATION OF INVENTORY OF ASSETS AND LIABILITIES AND LIST OF MEMBERS AND CREDITORS OF MANAGED COMPANY

For the purposes of this Act, the authorised person shall, as soon as may be, after taking over the management of the industrial undertaking of a company undersection I8Aorsection 18AAorsection 18FA,-

(a) prepare a complete inventory of- 

(i) all properties, movable and immovable, including lands, buildings, works, workshops, stores, instruments, plant, machinery, automo- biles and other vehicles, stocks of materials in the course of produc- tion, storage or transit, raw materials, cash balances, cash in hand, deposits in bank or with any other person or body or on loan, reserve funds, investments and book debts and all other rights and interests- arising out of such property as were immediately before the date of taking over of the industrial undertaking in the ownership, posses- sion, power or control of the company, whether within or without India; and all books of account, registers, maps, plants, sections, drawings, records, documents or titles of ownership of property, and all other documents of whatever nature relating thereto ; and

(ii) all borrowings, liabilities and obligations of whatever kind of the company including liability on account of terminal benefits to its employees subsisting immediately before the said date;

(b) prepare separately a list of members, and a list of creditors, of such company as on the date of taking over of the management of the industrial undertaking showing separately in the list of creditors, the secured creditors and the unsecured creditors : Provided that where the management of the industrial undertaking of a company has been taken over under the saidsection 18Abefore the com- mencement of the Industries (Development and Regulation) Amendment Act, 1971 (72 of 1971), the aforesaid functions shall be performed by the authorised person within six months from such commencement.]

SECTION 18FH: STAY OF SUITS AND OTHER PROCEEDINGS

In the case of a company in respect of which an order under section 18FD has been made, no suit or other legal proceeding shall be instituted or continued against the company except with the previous permis- sion of the Central Government or any officer or authority authorised by that Government in this behalf.]

SECTION 18G: POWER TO CONTROL SUPPLY, DISTRIBUTION, PRICE, ETC., OF CERTAIN ARTICLES

(1) The Central Government, so far as it appears to it to be necessary or expedient for securing the equitable distribution and availability at fairprices of any article or class of articles relatable to any scheduled industry, may, notwithstanding anything contained in any other provision of this Act, by notified order, provide for regulating the supply and distribution thereof and trade and commerce therein.

(2) Without prejudice to the generality of the powers conferred by subsection (1), a notified order made thereunder may provide - 

(a) for controlling the prices at which any such article or class thereof may be bought or sold ;

(b) for regulating by licences, permits or otherwise the distribution, transport, disposal, acquisition, possession, use or consumption of any such article or class thereof;

(c) for prohibiting the withholding from sale of any such article or class thereof ordinarily kept for sale ;

(d) for requiring any person manufacturing, producing or holding in stock any such article or class thereof to sell the whole or part of the articles so manufactured or produced during a specified period or to sell the whole or a part of the articles so held in stock to such person or class of persons and in such circumstances as may be specified in the order;

(e) for regulating or prohibiting any class of commercial or financial transactions relating to such article or class thereof which in the opinion of the authority making the order are, or if unregulated are likely to be, detrimental to public interest ;

(f) for requiring persons engaged in the distribution and trade and com- merce in any such article or class thereof to mark the articles exposed or intended for sale with the sale price or to exhibit at some easily accessible place on the premises the price-lists of articles held for sale and also to similarly exhibit on the first day of every month, or at such other time as may be prescribed, a statement of the total quantities of any such articles in stock;

(g) for collecting any information or statistics with a view to regulating or prohibiting any of the aforesaid matters ; and

(h) for any incidental or supplementary matters, including, in particular, the grant of issue of licences, permits or other documents and the charging of fees therefor.

(3) Where, in pursuance of any order made with reference to clause (d) of sub-section (2), any person sells any article, there shall be paid to him the price therefor - 

(a) where the price can consistently with the controlled price, if any, be fixed by agreement, the price so agreed upon ;

(b) where no such agreement can be reached, the price calculated with reference to the controlled price, if any, fixed under this section ;

(c) where neither clause (a) nor clause (b) applies, the price calculated at the market rate prevailing in the locality at the date of sale.

(4) No order made in exercise of any power conferred by this section shall be called in question in any Court.

(5) Where an order purports to have been made and signed by an authority in exercise of any power conferred by this section, a court shall, within the meaning of the Indian Evidence Act, 1872 (I of 1872), presume that such order was so made by that authority. Explanation: In this section, the expression "article or class of articles" relatable to any scheduled industry includes any article or class of articles imported into India which is of the same nature or description as the article or class of articles manufactured or produced in the scheduled industry.]

SECTION 19: POWERS OF INSPECTION

(1) For the purpose of ascertaining the position or working of any industrial undertaking or for any other purpose mentioned in this Act or the rules made thereunder, any person authorised by the Central Government in this behalf shall have the right - 

(a) to enter and inspect any premises ;

( b) to order the production of any document, book, register or record in the possession or power of any person having the control of, or employed in connection with, any industrial undertaking; and

(c) to examine any person having the control of, or employed in connection with, any industrial undertaking.

(2) Any person authorised by the Central Government under sub-section (1) shall be deemed to be a public servant within the meaning ofsection 21 of the Indian Penal Code (45 of 1860)-.

SECTION 20: GENERAL PROHIBITION OF TAKING OVER MANAGEMENT OR CONTROL OF INDUSTRIAL UNDERTAKINGS

After the commencement of this Act, it shall not be competent for any State Government or a local authority to take over the management or control of any industrial undertaking under any law for the time being in force which authorises any such Government or local authority so to do.

SECTION 21: CERTAIN ADMINISTRATIVE EXPENSES OF DEVELOPMENT COUNCILS TO BE PAID FROM MONEYS PROVIDED BY PARLIAMENT

Such administrative expenses as relate to the emoluments of officers of a Development Council who are appointed by or with the approval of the Central Government, shall be defrayed out of moneys provided by Parliament.

SECTION 22: POWER OF THE CENTRAL GOVERNMENT TO ISSUE DIRECTIONS TO DEVELOPMENT COUNCILS

In the exercise of its functions under this Act, every Development Council shall be guided by such instructions as may be given to it by the Central Government and such instructions may include directions relating to the manner in which, and the purpose for which, any proceeds of the cess levied undersection 9which may have been handed over to it shall be expended.

SECTION 23: DECISION OF CENTRAL GOVERNMENT FINAL RESPECTING CERTAIN MATTERS

If, for the purposes of this Act, any question arises as to whether-

(a) there has been a substantial expansion of an industrial undertaking, or

(b) an industrial undertaking is producing or manufacturing any new article, the decision of the Central Government thereon shall be final.]

SECTION 24: PENALTIES

⁵³[(1) If any person contravenes or attempts to contravene or abets the contravention of- 

(i) the provisions of sub-section (1)⁵⁴[or sub-section (4)] ofsection 10or of sub-section (1) ofsection IIor ofsection 11 Aor of sub-section (1) ofsection 13, or of4[sub-sections (2), (2A), (2D), (2F) and (2G) of section 29B] or

(ii) any direction issued undersection 16or sub-section (3) ofsection 18B, or

(iii) any order made undersection 18G, or

(iv) any rule the contravention of which is made punishable under this section, he shall be punishable with imprisonment which may extend to six months, or with fine which may extend to five thousand rupees, or with both, and, in the case of a continuing contravention, with an additional fine which may extend to five hundred rupees for every day during which such contravention continues after conviction for the first such contravention.]

(2) If the person contravening any of the said provisions is a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the contravention and shall be liable to be proceeded against and punished accordingly : Provided that nothing contained in this subsection shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(3) Notwithstanding anything contained in sub-section (2), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director or manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation: For the purposes of this section- 

(a) "company" means any body corporate and includes a firm or other association of individuals ; and

(b) "director" in relation to a firm means a partner in the firm.

SECTION 24A: PENALTY FOR FALSE STATEMENT

If any person,-

(a) when required by this Act or by any order under this Act to make any statement or furnish any information, makes any statement or furnishes any information which is false in any material particular and which he knows or has reasonable cause to believe to be false or does not believe to be true ; or

(b) makes any such statement as aforesaid in any book, account, record, declaration, return or other document which he is required by any order made under this Act to maintain or furnish ; he shall be punishable with imprisonment which may extend to three months, or with fine which may extend to two thousand rupees, or with both.]

SECTION 25: DELEGATION OF POWERS

(1) The Central Government may, by notified order, direct that any power exercisable by it under this Act (other than the power given to it bysections 16,3[l8A,18AAand18FA] shall, in relation to such matters and subject to such conditions, if any, as may be specified in the direction, be exercisable also by such officer or authority (including in the said expressions any Development Council, State Government or officer or authority subordinate to the Central Government) as may be specified in the direction.

(2) Any power exercisable by a State Government by virtue of a direction under sub-section (1) may, unless otherwise provided in such direction, be exercised also by such officer or authority subordinate to that State Government as it may, by notified order, specify in this behalf.]

SECTION 26: POWER TO ISSUE DIRECTIONS

The Central Government may give directions to any State Government as to the carrying into execution in the State of any of the provisions of this Act or of any order or direction made thereunder.]

SECTION 27: COGNIZANCE OF OFFENCES

No Court shall take cognizance of any offence punishable under this Act except on a report in writing of the facts constituting such offence made by a person who is a public servant as defined insection 21 of the Indian Penal Code (45 of I860)]

SECTION 28: BURDEN OF PROOF INCERTAIN CASES

Where any person is prosecuted for contravening any order made undersection 18Gwhich prohibits him from doing an act or being in possession of a thing without lawful authority or without a permit, licence or other document, the burden of proving that he has such authority, permit, licence or other document shall be on him.]

SECTION 29: JURISDICTION OF COURTS

(1) Subject to the provisions of sub-section (2), no Court inferior to that of a presidency magistrate or a magistrate of the first class shall try any offence punishable under this Act.

(2) Any magistrate or Bench of magistrates empowered, for the time being, to try in a summary way the offences specified in sub-section (1) ofsection 260 of the Code of Criminal Procedure, 1898 (5 of 1898), may, on application in this behalf being made by the prosecution, try, in accordance with the provisions contained insections 262 to 265of the said Code, any offence which consists of a contravention of an order made undersection 18G.]

SECTION 29A: SPECIAL PROVISION REGARDING FINES

Notwithstanding anything contained insection 32 of the Code of Criminal Procedure, 1898 (5 of 1898), it shall be lawful for any magistrate of the first class and for any presidency magistrate to pass a sentence of fine exceeding one thousand rupees on any person convicted of any offence under this Act.]

SECTION 29B: POWER TO EXEMPT IN SPECIAL CASES

⁶¹[(1)] If the Central Government is of opinion, having regard to the smallness of the number of workers employed or to the amount invested in any industrial undertaking or to the desirability of encouraging small Undertakings generally or to the stage of development of any scheduled industry, that it would not be in public interest to apply all or any of the provisions of this Act thereto, it may, by notification in the Official Gazette, exempt, subject to such conditions as it may think fit to impose, any industrial undertaking or class of industrial undertakings or any scheduled industry or class of scheduled industries as it may specify in the notification from the operation of all or any of the provisions of this Act or of any rule or order made thereunder.]

⁶¹[(2) Where any notification under sub-section (1) granting any exemption is cancelled, no owner of any industrial undertaking to which the provisions ofsection 10,section 11,section 11 Aor clause (d) of subsection (1) ofsection 13would have applied, if the notification under subsection (1) had not been issued, shall carry on the business of the undertaking after the expiry of such period as may be specified in the notification cancelling the exemption except under and in accordance with a licence issued in this behalf by the Central Government and, in the case of a State Government, except under and in accordance with the previous permission of the Central Government.]

⁶¹[(2A) In particular, and without prejudice to the generality of the provisions of sub-section (1), the Central Government may, if it is satisfied, after considering the recommendations made to it by the Advisory.Committee constituted under sub-section (2B), that it is necessary so to do for the development and expansion of ancillary, or small scale industrial undertakings, by notified order, direct that any article or class of articles specified in the First Schedule shall, on and from such date as may be specified in the notified order (hereafter in this section referred to as the "date of reservation") be reserved for exclusive production by the ancillary, or small scale industrial undertakings (hereafter in this section referred to as "reserved article").

(2B) The Central Government shall, with aview to determining the nature of any article or class of articles that may be reserved for production by the ancillary, or small scale industrial undertakings, constitute an Advisory Committee consisting of such persons as have, in the opinion of that Government, the necessary expertise to give advice on the matter.

(2C) The Advisory Committee shall, after considering.the following matters, communicate its recommendations to the Central Government, namely :- 

(a) the nature of any article or class of articles which may be produced economically by the ancillary, or small scale industrial undertakings;

(b) the level of employment likely to be generated by the production of such

article or class of articles by the ancillary, or small scale industrial undertakings;

(c) the possibility of encouraging and diffusing entrepreneurship in industry;

(d) the prevention of concentration of economic power to the common detriment; and

(e) such other matters as the Advisory Committee may think fit.

(2D) The production of any reserved article or class of reserved articles by any industrial undertaking (not being an ancillary, or small scale industrial undertaking) which, on the date of reservation, is engaged in, or has taken effective steps for, the production of any reserved article or class of reserved articles, shall, after the commencement of the Industries (Development and Regulation) Amendment Act, 1984, or, as the case may be, the date of reservation, whichever is later, be subject to such conditions as the Central Government may, by notified order, specify.

(2E) While specifying any condition under sub-section (2D), the Central Government may take into consideration the level of production of any reserved article or class of reserved articles achieved, immediately before the date of reservation, by the industrial undertaking referred to in subsection (2D), and such other factors as may be relevant.

(2F) Every person or authority, not being the Central Government, who, or which, is registered undersection 10or to whom, or to which, a licence has been issued or permission has been granted undersection 11for the production of any article or class of articles which has, or have, been subsequently reserved for the ancillary, or small scale industrial undertakings, shall produce such registration certificate, licence or permission, as the case may be, within such period as the Central Government may, by notified order, specify in this behalf, and the Central Government may enter therein all or any of the conditions specified by it under sub-section (2D), including the productive capacity of the industrial undertakings and other prescribed particulars.

(2G) The owner of every industrial undertaking (not being an ancillary, or small scale industrial undertaking) which, immediately before the com- mencement of the Industries (Development and Regulation) Amendment Act, 1984, or the date of reservation, whichever is later,- 

(a) was engaged in the production of any article or class of articles, which has, or have, been reserved for the ancillary, or small scale industrial undertakings, or

(b) had before such commencement or before the date of such reservation, as the case may be, taken effective steps for commencing the production of such reserved article or class of reserved articles, without being registered undersection 10or in respect of which a licence or permission has not been issued undersection 11, shall refrain from the production of such reserved article or class of reserved articles, on and from the date of expiry of three months from such commencement or from the date of such reservation, whichever is later.

(2H) Every notified order made under sub -section (2A) shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days, which may be comprised in one session or in two or more successive sessions, -and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notified order or both Houses agree that the notified order should not be made, the notified order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notified order.]

⁶²[(3) The provisions of this Act shall apply, so far as may be, in relation to the issue of a licence or permission to any industrial undertaking referred to in sub- section (2) as they apply in relation to the issue of a licence or permission to a new industrial undertaking.]

SECTION 29C: PROTECTION OF ACTION TAKEN UNDER THE ACT

(1) No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done under this Act or any rule or order made thereunder.

(2) No suitor other legal proceeding shall lie against the Government for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or any rule or order made thereunder.]

SECTION 29D: DEBTS INCURRED BY THE AUTHORISED PERSON TO HAVE PRIORITY

Every debt arising out of any loan obtained by the authorised person for carrying on the management of, or exercising functions of control in relation to, an industrial undertaking or part thereof, the management of which has been taken over undersection I8A or section18AA orsection 18FA ,-

(a) shall have priority over all other debts, whether secured or unsecured, incurred before the management of such industrial undertaking was taken over;

(b) shall be a preferential debt within the meaning ofsection 530 of the Companies Act, 1956 (1 Vof 1956)-; and such debts shall rank equally among themselves and be paid in full out of the assets of the industrial undertaking unless such assets are insufficient to meet them, in which case they shall abate in equal proportions.]

SECTION 30: POWER TO MAKE RULES

(1) The Central Government may, subject to the conditions of previous publication, make rules for carrying out the purposes of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely- 

(a) the constitution of the Advisory Council and Development Councils, the term of office and other conditions of service of, the procedure to be followed by, and the manner of filling casual vacancies among members of the Advisory Council or a Development Council;

(b) the form of the statement of account to be furnished by a Development Council;

(c) the intervals at which, the time within which, and manner in which the cess leviable undersection 9shall be payable and the rebate for the prompt payment of such cess;

(d) the expenses which a Development Council may meet from the proceeds of the cess levied undersection 9which may have been handed over to it;

(e) the appointment by or with the approval of the Central Government of any officers of a Development Council;

(f) the facilities to be provided by any industrial undertaking for the training of technicians and labour,

(g) the collection of any information or statistics in respect of any scheduled industry;

(h) the manner in which industrial undertakings may be registered undersection 10and the levy of a fee therefor;

(i) the procedure for the grant or issue of licences and permissions under⁶⁴ [section 11, section 11A,⁶⁵[section 13orsection 29B]], the time within which such licences or permissions shall be granted or issued including, in particular, the publication of notices calling for applications and the holding of such public inquiry in relation thereto as may be necessary in the circumstances;

(j) the fees to be levied in respect of licences and permissions issued under this Act;

(k) the matters which may be taken into account in the granting or issuing of licences and permissions, including in particular, the previous consulta- tion by the Central Government with the Advisory Council or any Development Council or both in regard to the grant or issue of any such licences or permission;

(l) the procedure to be followed in making any investigation under this Act;

(m) the conditions which may be included in any licences and permissions;

(n) the conditions on which licences and permissions may be varied or amended undersection 12;

(o) the maintenance of books, accounts and records relating to an industrial undertaking;

(p) the submission of special or periodical returns relating to an industrial undertaking by persons having the control of, or employed in connection with, such undertaking, and the forms in which, and the authorities to which, such returns and reports shall be submitted;

⁶⁶[(PP) sny matter which is to be or may be prescribed for giving effect to the provisions of Chapter IIIAA or Chapter IIIAC];

(q) any other matter which is to be or may be prescribed under this Act.

(3) Any rule made under this section may provide that a contravention thereof shall be punishable undersection 24.

(4) All rules made under this section shall be laid for not less than seven days before Parliament as soon as possible after they are made, and shall be subject to such modifications as Parliament may make during the session in which they are so laid, or the session immediately following.,.

SECTION 31: APPLICATION OF OTHER LAWS NOT BARRED

The provisions of this Act shall be in addition to and not, save as otherwise expressly provided in this Act, in derogation of any other Central Act for the time being in force, relating to any of the scheduled industries.

SECTION 32: AMENDMENT OF SECTION 2, ACT 14 OF 1947

[Omitted by the Amendment Act, 1957, w.e.f. 17-9-1957].

Footnotes:

1. "except the State of Jammu and Kashmir" omitted by the Industries (Development and Regulation) Amendment Act, 1961, w.e.f. 15-2-1962.

3. Inserted by the Industries (Development and Regulation) Amendment Act, 1984, w.e.f. 12-1-1984.

4. Relettered, by the Industries (Development and Regulation) Amendment Act, 1984. Earlier the clause was inserted by the Industries (Development and Regulation) Amendment Act, 1971, w.e.f. 1-11-1971.

6. Inserted by the Industries (Development and Regulation) Amendment Act, 1953, w.e.f. 1-10-1953.

7. Inserted by the Industries (Development and Regulation) Amendment Act, 1971, w.e.f. 1-11-1971.

8. Inserted by the Industries (Development and Regulation) Amendment Act, 1953, w.e.f. 1-10-1953.

9. See the Trade and Merchandise Marks Act, 1958 (43 of 1958).

10. Inserted by the Industries (Development and Regulation) Amendment Act, 1984, w.e.f. 12-1-1984.

11. Relettered as clause (k), by the Industries (Development and Regulation) Amendment Act, 1984 Earlier the clause was inserted by the Industries (Develop- ment and Regulation) Amendment Act, 1971, w.e.f. 1-11-1971.

12. Prior to omission section 4 read as follows :- "4. Saving .-Nothing in this Act shall apply to an industrial undertaking if the capital invested therein does not exceed rupees one lakh."

13. Omitted by the Industries (Development and (Regulation) Amendment Act, 1953, w.e.f. 1-10-1953. Prior to its omission this clause read as follows : "( b) the exercise by the Central Government of any of the powers conferred upon it under section 16 or sub-section (1) of section 17; and may consult the Advisory Council in regard to any other matter connected with the administration of this Act in respect of which the Central Government may consider it necessary to obtain the advice of the Advisory Council'

18. Inserted by the Industries (Development and Regulation) Amendment Act, 1953, w.e.f. 1-10-1953.

19. Inserted, by the Industries (Development and Regulation) Amendment Act, 1953.

20. Inserted by the Industries (Development and Regulation) Amendment Act, 1984, w.e.f. 12-1-1984.

24. Inserted by the Industries (Development and Regulation) Amendment Act, 1956, w.e.f.1-3-1957.

26. Substiuted for 'or section 13" by the Industries (Development and Regulation) Amendment Act, 1956, w.e.f. 1-3-1957.

27. Substituted by the Industries (Development and Regulation) Amendment Act, 1953, w.e.f. 1-10-1953 for the earlier clause which read as follows : "(b) any industrial undertaking is being managed in a manner likely to cause serious injury or damage to the interests of the consumers or a substantial body thereof, for whom the articles or any class of articles manufactured or produced therein are or is intended; the Central Government may make or cause, to be made a full and complete Investigation into the circumstances of the case by such person or body of persons as-it may appoint for the purpose."

29. Prior to omission, section 17 read as under : (1) If after a direction has been issued in pursuance of section 16, the Central Government is of opinion that the direction has not been complied with and that any industrial undertaking in respect of which the direction has been issued is being managed in a manner highly detrimental to the scheduled industry concerned or to the public interest, the Central Government may, by notified order, authorise for a period not exceeding five years any person or a Development Council or any other body of persons (hereinafter referred to as the authorised person) either to take over the management of the whole or any part of the undertaking in supersession of any other person or body of persons in charge thereof or to exercise with respect to the whole or any part of such undertaking such functions of control as may be provided by that order. (2) Where the authorised person has been authorised to take over the management of the industrial undertaking, he shall take all such steps as may be necessary to take into his custody or under his control all the property, effects and actionable claims to which the industrial undertaking is or appears to be entitled, and all the property and effects of the industrial undertaking shall be deemed to be in the custody of the authorised person as from the date of the notified order. (3) Where the authorised person has been authorised to exercise any functions of control in relation to an industrial undertaking, the undertaking shall be carried on in accordance with any directions given by the authorised person in accordance with the provisions of the notified order and any person having any functions of management in relation to the undertaking or part thereof shall comply with any such directions. (4) The authorised person shall in all cases exercise his functions in accordance with any instructions given to him by the Central Government, so, however, that he shall not have any power to give to any other person any directions under this section inconsistent with the provisions of any Act or instrument determining the functions of the authority carrying on the undertaking except in so far as may be specifically provided by the order. (5)lf at any time it appears to the Central Government on the application of the owner of the industrial undertaking or otherwise, that the purpose of the order made under this section has been fulfilled or that for any other reason it is not necessary that the order should remain in force the Central Government may by notified order cancel such order, and on the cancellation of-any such order, the management or the control, as the case may be of the industrial undertaking shall vest in the owner of the undertaking. (6) Any order made under this section shall have effect, notwithstanding anything inconsistent therewith contained in any enactment other than this Act or in any instrument having effect by virtue of any enactment other than this Act."

30. Inserted by the Industries (Development and Regulation) Amendment Act, 1971, w.e.f. 1-11-1971.

32. Substituted by the Industries (Development and Regulation) Amendment Act, 1965, earlier the proviso read as under: "Provided that the Central Government, if it is of opinion that it is expedient in public interest so to do, may direct that any such notified order shall continue to have effect after the expiry of the period of five years aforesaid for such further period as may be specified in the direction and where any such direction is issued, a copy thereof shall be laid. as soon as may be, beforfe both Houses of Parliament."

35. Inserted by the Industries (Development and Regulation) Amendment Act, 1953, w.e.f. 1.10-1953.

37. Inserted by the Industries (Development and Regulation) Amendment Act, 1953, w.e.f. 1-10-1953.

41. Inserted by the Industries (Development and Regulation) Amendment Act, 1971, w.e.f. 1-11-1971.

43. Chapter IIIAC, consisting sections 18FC to 18FH inserted by the Industries (Development and Regulation) Amendment Act, 1971, w.e.f. 1-11-1971.

53. Substituted by the Industries (Development and Regulation) Amendment Act, 1953, w.e.f. 1-10-1953.

54. Substituted by the Industries (Development and Regulation) Amendment Act, 1953, w.e.f. 1-10-1953.

61. Inserted by the Industries (Development and Regulation) Amendment Act, 1971, w.e.f. 1-11-1971.

62. Substituted for "section 11 or section 13" by the Industries (Development and Regulation)Amendment Act, 1953,w.e.f. 1-10-1953.

64. Inserted by the Industries (Development and Regulation) Amendment Act, 1971, w.e.f. 1-11-1971.

65. Substituted by the Industries (Development and Regulation) Amendment Act, 1956, w.e.f. 1-3-1957.

66. Substituted for item I by the Industries (Development and Regulation) Amendment Act, 1962,w.e.f.l6-9-1962. '

SCHEDULE 1 FIRST SCHEDULE

[Seesections 2 and 3(0] Any industry engaged in the manufacture or production of any of the articles mentioned under each of the following headings or sub-headings, namely :-1. Metallurgical industries A. Ferrous: (1) Iron and steel (metal) (2) Ferro-alloys (3) Iron and steel castings and forgings (4) Iron and steel structurals (5) Iron and steel pipes (6) Special steels (7) Other products of iron and steel B. Non-ferrous:1[(1) Precious metals, including gold and silver, and their alloys (1A) Other non-ferrous metals and their alloys] (2) Semi-manufactures and manufactures 2. Fuels (1) Coal, lignite, coke and their derivatives (2) Mineral oil (crude oil), motor and aviation spirit, diesel oil, kerosene oil, fuel oil, diverse hydrocarbon oils and their blends including synthetic fuels, lubricating oils and the like (3) Fuel gases - (coal gas, natural gas and the like) 3. Boilers and steam generating plants Boilers and steam generating plants 4. Prime movers (other than electrical generators) (1) Steam engines and turbines (2) Internal combustion engines 5. Electrical equipment (1) Equipment for generation, transmission and distribution of electricity including transformers (2) Electrical motors (3) Electrical fans (4) Electrical lamps (5) Electrical furnaces (6) Electrical cables and wires (7) X-ray equipment (8) Electronic equipment(9) Household appliances such as electric irons, heaters and the like (10) Storage batteries (11) Dry cells 6. Telecommunications (1) Telephones (2) Telegraph equipment (3) Wireless communication apparatus (4) Radio receivers, including amplifying and public address equipment (5) Television sets (6) Teleprinters 7. Transportation (1) Aircraft (2) Ships and other vessels drawn by power (3) Railway locomotives (4) Railway rolling stock (5) Automobiles (motor cars, buses, trucks, motor cycles, scooters and the like) (6) Bicycles (7) Others, such as fork lift trucks and the like 8. Industrial machinery A. Major items of specialised equipment used in specific industries : (1) Textile machinery (such as spinning frames, carding machines, powerlooms and the like) including textile accessories (2) Jute machinery (3) Rayon machinery (4) Sugar machinery (5) Tea machinery (6) Mining machinery (7) Metallurgical machinery (8) Cement machinery (9) Chemical machinery (10) Pharmaceuticals machinery (11) Paper machinery B. General items of machinery used in several industries, such as the equipment required for various 'unit processes': (1) Size reduction equipment - crushers, ball mills and the like (2) Conveying equipment-bucket elevators, skip hoists, cranes, derricks and the like (3) Size separation units-screens, classifiers and the like (4) Mixers and reactors-kneading mills, turbo mixers and the like (5) Filtration equipment-filter presses, rotary filters and the like (6) Centrifugal machines (7) Evaporators (8) Distillation equipment (9) Crystallisers (10) Driers (11) Power-driven pumps-reciprocating, centrifugal and the like (12) Air and gas compressors and vacuum pipes (excluding electrical furnaces) (13) Refrigeration plants for industrial use (14) Fire-fighting equipment and appliances including fire engines C. Other items of industrial machinery : (1) Ball, roller and tapered bearings (2) Speed reduction units (3) Grinding wheels and abrasives 9. Machine tools Machine tools 10. Agricultural machinery (1) Tractors, harvesters and the like (2) Agricultural implements 11. Earth-moving machinery Bulldozers, dumpers, scrapers, loaders, shovels, drag lines, bucket wheel excavators, road rollers and the like 12. Miscellaneous mechanical and engineering Industries (1) Plastic moulded goods (2) Hand tools, small tools and the like (3) Razor blades[(4) Pressure cookers (5) Cutlery (6) Steel furniture]13. Commercial, office and house hold equipment (1) Typewriters (2) Calculating machines (3) Air-conditioners and refrigerators (4) Vacuum cleaners (5) Sewing and knitting machines (6) Hurricane lanterns 14. Medical and surgical appliances Surgical instruments - sterilisers, incubators and the like 15. Industrial instruments (1) Water meters, steam meters, electricity meters and the like (2) Indicating, recording and regulating devices for pressure, temperature, rate of flow, weights, levels and the like (3) Weighing machines 16. Scientific instruments Scientific instruments 17. Mathematical, surveying and drawing instruments Mathematical, surveying and drawing instruments 18. Fertilisers (1) Inorganic fertilisers (2) Organic fertilisers (3) Mixed fertilisers 19. Chemicals (other than fertilisers) (1) Inorganic heavy chemicals (2) Organic heavy chemicals (3) Fine chemicals including photographic chemicals (4) Synthetic resins and plastics (5) Paints, varnishes and enamels (6) Synthetic rubbers (7) Man-made fibres including regenerated cellulose-rayon, nylon and the like (8) Cock oven by-products (9) Coal-tar distillation products like naphthalene, anthracene and the like (10) Explosives including gun-powder and safety fuses (11) Insecticides, fungicides, weedicides and the like (12) Textile auxiliaries (13) Sizing materials including starch (14) Miscellaneous chemicals 20. Photographic raw film and paper (1) Cinema film (2) Photographic amateur film (3) Photographic printing paper 21. Dye-stuffs Dye-stuffs 22. Drugs and pharmaceuticals Drugs and pharmaceuticals 23. Textiles (including those dyed, printed or otherwise processed) (1) made wholly or in part of cotton, including cotton yarn, hosiery and rope (2) made wholly or in part of jute, including jute twine and rope (3) made wholly or in part of wool, including wool tops, woollen yarn, hosiery, carpets and druggets (4) made wholly or in part of silk, including silk yarn and hosiery (5) made wholly or in part of synthetic, artificial (man-made) fibres, including yarn and hosiery of such fibres 24. Paper and pulp including paper products (1) Paper-writing, printing and wrapping (2) Newsprint (3) Paper board and straw board (4) Paper for packaging (corrugated paper, kraft paper, paper bags, paper containers and the like) (5) Pulp-wood pulp, mechanical, chemical, including dissolving pulp 25. Sugar Sugar 26. Fermentation industries (1) Alcohol (2) Other products of fermentation industries 27. Food processing industries (1) Canned fruits and fruit products (2) Milk foods (3) Malted foods(4) Flour (5) Other processed-foods 28. Vegetable oils and Vanaspati (1) Vegetable oils, including solvent extracted oils (2) Vanaspati 29. Soaps, cosmetics and toilet preparations (1) Soaps (2) Glycerine (3) Cosmetics (4) Perfumery (5) Toilet preparations 30. Rubber goods (1) Tyres and tubes (2) Surgical and medicinal products including prophylactics (3) Footwear (4) Other rubber goods 31. Leather, leather goods and pickers Leather, leather goods and pickers 32. Glue and gelatin Glue and gelatin 33. Glass (1) Hollow ware (2) Sheet and plate glass (3) Optical glass (4) Glass wool (5) Laboratory ware (6) Miscellaneous ware 34. Ceramics (1) Firebricks (2) Refractories (3) Furnace lining bricks - acidic, basic and neutral (4) Chinaware and pottery (5) Sanitaryware (6) Insulators (7) Tiles[(8) Graphite crucibles] 35. Cement and gypsum products (1) Portland cement (2) Asbestos cement (3) Insulating boards (4) Gypsum boards, wall boards and the like 36. Timber products (1) Plywood (2) Hardboard, including fibre-board, chip-board and the like (3) Matches (4) Miscellaneous (furniture components, bobbins, shuttles and the like) 37. Defence industries Arms and ammunition 38. Miscellaneous industries2[(1)] Cigarettes3[(2) Linoleum, whether felt based or jute based]4[(3) Zip fasteners (metallic and non-metallic) (4) Oil stoves (5) Printing, including litho printing industry] Explanation I: The articles specified under each of the Heading Nos. 3,4, 5, 6, 7,8, 10, II and 13 shall include their component parts and accessories. Explanation 2: The articles specified under each of the Heading Nos. 18,19,21 and 225shall include the intermediates required for their manufacture.]

SCHEDULE 2 SECOND SCHEDULE

[Seesection 6(4)] Functions which may be assigned to Development Councils : (1) Recommending targets for production, co-ordinating production programmes and reviewing progress from time to time; (2) Suggesting norms of efficiency with a view to eliminating waste, obtaining maximum production, improving quality and reducing costs; (3) Recommending measures for securing the fuller utilisation of the in- stalled capacity and for improving the working of the industry, particularly of the less efficient units; (4) Promoting arrangements for better marketing and helping in the devising of a system of distribution and sale of the produce of the industry which would be satisfactory to the consumer; (5) Promoting standardisation of products; (6) Assisting in the distribution of controlled materials and promoting arrangements for obtaining materials for the industry; (7) Promoting or undertaking inquiry as to materials and equipment and as to methods of production, management and labour utilisation, including the discovery and development of new materials, equipment and methods and of improvements in those already in use, the assessment of the advantages of different alternatives and the conduct of experimental establishments and of tests on a commercial scale; (8) Promoting the training of persons engaged or proposing engagement in the industry and their education in technical or artistic subjects relevant thereto; (9) Promoting the retraining in alternative occupations of personnel engaged in or retrenched from the industry; (10) Promoting or undertaking scientific and industrial research, research into matters affecting industrial psychology and research into matters relating to production and to the consumption or use of goods and services supplied by the industry; (11) Promoting improvements and standardisation of accounting costing methods and practice; (12) Promoting or undertaking the collection and formulation of statistics; (13) Investigating possibilities of decentralising stages and processes of production with a view to encouraging the growth of allied small-scale and cottage industries; (14) Promoting the adoption of measures for increasing the productivity of labour, including measures for securing safer and better working condi- tions and the provision and improvement of amenities and incentives for workers; (15) Advising on any matters relating to the industry (other than remuneration and conditions of employment) as to which the Central Government may request the Development Council to advise and undertaking inquiries for the purpose of enabling the Development Council so to advise; and (16) Undertaking arrangements for making available to the industry informa- tion obtained and for advising on matters with which the Development Councils are concerned in the exercise of any of their functions.

SCHEDULE 3 THIRD SCHEDULE

[Seesection 18FB] 1. The Industrial Employment (Standing Orders) Act, 1946 (20 of 1946). 2. The Industrial Disputes Act, 1947 (14 of 1947). 3. The Minimum Wages Act, 1948 (11 of 1948).]

CEMENT CESS RULES, 1993

Whereas the draft of the Cement Cess Rules, 1993 was published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (ii), dated the 24th February, 1993, with the notification of the Government of India in the Ministry of Industry (Department of Industrial Development), No. S.O. 126(E), dated the 24th February, 1993, as required by sub-section (1) of Section 30of the Industries (Development and Regulation) Act, 1951 (65 of 1951), for inviting objections and suggestions from all persons likely to be affected thereby within thirty days from the date on which the Gazette containing the said notification was made available to the public; And whereas the said Gazette was made available to the public on the 9th March, 1993; And whereas the objections and suggestions received from the public on the said draft have been considered by the Central Government; Now, therefore, in exercise of the powers conferred by Section 30of the said Act the Central Government hereby makes the following rules, namely :-

RULE 1 SHORT TITLE

-These rules may be called the Cement Cess Rules, 1993.

RULE 2 DEFINITIONS

-In these rules, unless the context otherwise requires,-

(a) "Act" means the Industries (Development and Regulation) Act, 1951 (65 of 1951) ;

(b) "Cess" means the cess levied and collected in terms of Order No.S.O.125(E) dated 24th February, 1993 of Department of Industrial Development, issued under sub-section (1) of Section 9 of the Act ;

(c) "Collecting Agency" means the Development Commissioner for Cement Industry, Government of India, or such other officer or authority as may be authorised by the Central Government to collect the amount of cess on its behalf under the Act;

(d) "Development Council" means the Development Council for Cement Industry established under Section 6 of the Act ;

(e) "Cement" means any variety of cement manufactured in India, and includes portfand pozzolana cement, blast furnace slag cement, waterproof (hydrophobic) cement, rapid harden- ing cement, low heat cement, masonry cement, high strength ordinary portland cement, oil-well cement and white cement;

(f) "Manufacturer" means any cement plant producing cement, excluding cement plants of capacity less than 99000 tonnes per annum based on rotary kiln and 66000 tonnes per annum based on vertical shaft kilns.

(g) Words and expressions used herein and not defined but defined in the Act or the rules made thereunder, shall have the meanings respectively assigned to them in that Act or the rules.

RULE 3 SUBMISSION OF RETURNS

- (1) Every manufacturer shall submit to the Collecting Agency, on or before the 15th of every month, a return in the Form specified in the Annexure to these rules, relating to stocks of cement manufactured or produced in, and removed from his undertaking during the previous month;

(2) If any manufacturer fails to furnish the said return within the date specified in sub-rule (1) or furnishes a return which the Collecting Agency has reason to believe is incorrect or defective, the Collecting Agency shall serve notice on the manufacturer calling upon him to produce all or any of his accounts relating to the cement manufactured or produced by him.

RULE 4 PROCEEDS OF THE CESS

- (1) Every Manufacturer shall remit the amount of cess as due for the previous month by the 15th of the following month through demand draft in favour of the Collecting Agency.

(2) The proceeds of the cess shall first be credited to the Consolidated Fund of India under the head "0852-lndustries-Cess on Cement" and the Central Government may after due appropriation made by Parliament by law in this behalf, hand over to the Development Council such sums as it may consider necessary from out of such proceeds after deducting therefrom the cost of collection.

RULE 5 OPENING OF ACCOUNTS

-The amount received by the Development Council underRule 4shall be kept in an account with the State Bank of India.

RULE 6 ACCOUNTS OF THE DEVELOPMENT COANCIL

(1) The Development Council shall maintain proper accounts relating to the amount received by it underRule 4.

(2) The audited statement of accounts for every financial year, together with the auditor's report thereon, shall be submitted to the Central Government.

RULE 7 BUDGET ESTIMATES OF THE DEVELOPMENT COUNCIL

- (1) The Development Council shall in each year prepare a budget for the ensuing financial year and submit the same for sanction to the Central Government on or before such date as may be specified by the Central Government.

(2) No expenditure shall be incurred until the budget is sanctioned by the Central Government.

(3) The budget shall be prepared in accordance with such instructions as may be issued from time to time by the Central Government.

RULE 8 PURPOSES FOR WHICH THE PROCEEDS OF THE CESS SHALL BE UTILISED

-In accordance with clauses (a), (b), (c) and (d) of sub -section (4) ofSection 9of the Act, the proceeds of the cess collected under the said section shall be utilised for the following purposes, namely :-

(i) for assisting the National Council for Cement and Building Materials, a society registered under the Societies Registration Act, 1860 (21 of 1860) for partly meeting its recurring expenditure, provision for depreciation, capital expenditure not covered under grant-in-aid from Government, and for carrying out Research and Development Projects and Training Programmes in the interest of the cement industry as may be decided by the Development Council;

(ii) suggesting norms and methodology for productivity improvement covering production, energy, maintenance, quality, environ- mental improvement and cost reduction;

(iii) providing guidance and assistance in identification and optimum exploitation of raw materials for manufacture of cement and building materials;

(iv) providing design and engineering support for setting up and modernisation of cement plants ;

(v) development of new materials and processes for cement manufacture including improved refractories;

(vi) promoting environmental improvement programmes for the cement industry covering control of dust emission, noise pollution and envilonmental impact assessment in limestone quarries and cement plants;

(vii) promoting standardisation and quality control programmes in cement manufacture including providing testing and calibration support services to the cement industry;

(viii) development of bulk supply and distribution system, for cement by rail, road and waterways and improved system for packaging;

(ix) promoting the training of persons engaged, or proposing engagement, in the cement industry and their education in technical or artistic subjects relevant thereto ;

(x) development of national data bank and information services and library and documentation services for cement industry and dissemination of industrial information through publications ;

(xi) recommending targets for production, coordinating production programmes and reviewing progress thereof from time to time;

(xii) assisting in the distribution of materials and promoting arrangements for obtaining materials for the cement industry;

(xiii) promoting the adoption of measures for increasing the productivity of labour, including measures for securing safer and better working conditions and the provision of improvement of amenities and incentives for workers ;

(xiv) defraying such minimum administrative expenses as may be involved in the discharge of its functions, including travelling allowance for the members of the Development Council.

TRACTOR CESS RULES, 1992

In exercise of the powers conferred by

Section 30read withSection 9 of the Industries (Development and Regulation) Act, 1951 (65 of 1951), the Central Government hereby makes the following rules, namely:-

RULE 1 SHORT TITLE AND COMMENCEMENT

(1) These rules may be called the Tractor Cess Rules, 1992;

(2) They shall come into force on the date of their publication in the Official Gazette.

RULE 2 DEFINITIONS

- In these rules, unless the context otherwise requires :-

(a) "Act" means the Industries (Development and Regulation) Act, 1951 (65 of 1951);

(b) "Tractor" means tractor as covered under the sub-heading (1) of heading 10 'Agricultural Machinery' of the First Schedule to the Act and of power take-off House Power exceeding 25;

(c) "cess" means the cess levied and collected in terms of notification of the Government of India in the Ministry of Industry (Department of Heavy Industry) No. S.O. 662(E) dated the 6th September, 1985 issued under sub- section ( I ) ofSection 9of the Act;

(d) "Collector" means the Collector of Central Excise and includes the Additional Collector of Central Excise, the Deputy Collector of Central Excise, Assistant Collector of Central Excise and Superintendent of Central Excise;

(e) "Development Council" means the Development Council for Automobiles and Allied Industries established underSection 6of the Act;

(f) Words and expressions used herein and not defined but defined in the Central Excise and Salt Act, 1944 (I of 1944) or the rules made thereunder, shall have the meaning respectively assigned to them in that Act or the rules.

RULE 3 APPLICATION OF CENTRAL EXCISE AND SALT ACT, 1944 AND THE RULES MADE THEREUNDER

-Save as otherwise provided in these rules, the provisions of the Central Excises and Salt Act, 1944 (I of 1944) and the rules made thereunder including those relating to refund of duty shall, so far as may be apply in relation to the levy and collection of the cess as they apply in relation to the levy and collection of the duty of excise on manufacture of tractors under the Act and the rules.

RULE 4 SUBMISSION OF RETURNS

(1) Every manufacturer shall submit to the Collector and to the Development Council on or before the 10th of every month a return in the Form specified in the annexure to these rules of all stocks of items of tractors manufactured or produced in, and removed from his undertaking during the previous month.

(2) If any manufacturer fails to furnish the return within the date specified in sub- rule (1) or furnishes a return which the Collector or the Development Council as reason to believe is incorrect or defective, the Collector may serve notice on the manufacturer calling upon him to produce all or any of his accounts relating to the tractors manufactured or produced by him.

RULE 5 PROCEEDS OF THE CESS

-The proceeds of the cess shall first be credited to the Consolidated Fund of India under the head "038-Union Excise duties - Cess on commodities tractors" and the Central Government may after due appropriation made by Parliament by law in this behalf, hand over to the Development Council such sums as it may consider necessary from out of such proceeds after deducting therefrom the cost of collection.

RULE 6 OPENING OF ACCOUNTS

-The amount received by the Development Council underRule 5shall be kept in an account with the State Bank of India.

RULE 7 ACCOUNTS OF THE DEVELOPMENT COUNCIL

(1) The Development Council shall maintain proper accounts relating to the amount received by it underRule 5.

(2) The audited statement of accounts for every financial year, together with the auditor's report thereon, shall be submitted to the Central Government.

RULE 8 BUDGET ESTIMATES OF THE DEVELOPMENT COUNCIL

(1) The Development Council shall in each year prepare a budget for the ensuing financial year and submit the same for sanction to the Central Government on or before such date as may be specified by the Central Government.

(2) No expenditure shall be incurred until the budget is sanctioned by the Central Government.

(3) The budget shall be prepared in accordance with such instructions as may be issued from time to time by the Central Government.

RULE 9 PRESCRIBED ADMINISTRATIVE EXPENSES

-The Development Council may utilise a sum not exceeding 2 per cent of the amount received by it underRule 5, to meet its expenses on account of office establishment and equipment, stationery, postage, telegrams, telephones, telex, wages and allowances of staff employed in the Secretariat, travel and daily allowance of members and expenditure connected with holding of council meetings.

AUTOMOBILE CESS RULES, 1984

[Notification No. S.O. 1(E), dated 29-12-1984 of the Ministry of Industry.] Whereas the draft of the Automobiles Cess Rules, 1984 was published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (ii), dated the 17th May, 1984, with the notification of the Government of India in the Ministry of Industry (Department of Heavy Industry) No. S.O. 932 (E), dated the 28th December, 1983, as required by sub-section (1) of thesection 30 of the Industries (Development and Regulation) Act, 1951 (65 of 1951), for inviting objections and suggestions from all persons likely to be affected thereby within sixty days from the date on which the Gazette containing the said notification was made available to the public. And whereas the said Gazette was made available to the public on the 11th June, 1984; And whereas the objections and suggestions received from the public on the said proposal have been considered by the Central Government; Now, therefore, in exercise of the powers conferred bysection 30 of the Industries (Development and Regulation) Act, 1951 (65 of 1951), the Central Government hereby makes the following rules, namely :-

RULE 1 SHORT TITLE

These rules may be called the Automobile Cess Rules, 1984.

RULE 2 DEFINITIONS

- In these rules, unless the context otherwise requires, -

(a) 'Act' means theIndustries (Development and Regulation) Act, 1951 (65 of 1951)-;

(b) 'Automobile' means motor cars, buses, trucks, jeep type vehicles, vans, scooters, motorcycles, mopeds, and all other automobiles covered under the sub-heading (5) of Heading 7 'Transportation' of the First Schedule to the Act;

(c) 'Cess' means the cess levied and collected in terms of Notification No. S.O. 932(E), dated 28-12-1983 of Department of Heavy Industry issued under sub-section (1) ofsection 9-of the Act;

(d) 'Collector' means the Collector of Central Excise and includes the Additional Collector of Central Excise, the Deputy Collector of Central Excise, Assistant Collector of Central Excise and Superintendent of Central Excise;

(e) 'Development Council' means the Development Council for Automobile and Allied Industries established undersection 6-of the Act;

(f) Words and expressions used herein and not defined but defined in the1 [Central Excise Act, 1944 (1 of 1944)-], or the rules made thereunder, shall have the meaning respectively assigned to them in the Act or the Rules.

RULE 3 APPLICATION OF [CENTRAL EXCISE ACT] AND THE RULES MADE THEREUNDER.

1- Save as otherwise provided in these rules, the provisions of1[Central Excise Act, 1944(1 of 1944)-], and the rules made thereunder including those relating to refund of duty, shall, so far as may, apply in relation to the levy and collection of the cess as they apply in relation to the levy and collection of the duty of excise on manufacture of automobiles under the Act and the Rules.

RULE 4 SUBMISSION OF RETURNS

(1) Every manufacturer shall submit to the Collector and to the Development Council on or before the 10th of every month a return in the Form specified in the annexure to those rules of all stocks of items of automobiles manufactured or produced in, and removed from his undertaking during the previous month.

(2) If any manufacturer fails to furnish the return within the date specified in sub-rule (1) or furnishes a return which the Collector or the Development Council has reason to believe is incorrect or defective, the Collector may serve notice on the manufacturer calling upon him to produce all or any of his accounts relating to the automobiles manufactured or produced by him.

RULE 5 PROCEEDS OF THE CESS.

The proceeds of the cess shall first be credited to the Consolidated Fund of India under the head '038-Union Excise Duties - Cess on Commodities Automobiles', and the Central Government may after due appropriation made by Parliament by law in this behalf, hand over to the Development Council such sums as it may consider necessary from out of such proceeds after deducting therefrom the cost of collection.

RULE 6 OPENING OF ACCOUNTS

The amount received by the Development Council underRule 5-shall be kept in an account with the State Bank of India.

RULE 7 ACCOUNTS OF THE DEVELOPMENT

(1) The Development Council shall maintain proper accounts relating to the amount received by it underRule 5-.

(2) The audited statement of accounts for every financial year, together with the auditor's report thereon, shall be submitted to the Central Government.

RULE 8 BUDGET ESTIMATES OF THE DEVELOPMENT COUNCIL

(1) The Development Council shall in each year prepare a budget for the ensuing financial year and submit the same for sanction to the Central Government on or before such date as may be specified by the Central Government.

(2) No expenditure shall be incurred until the budget is sanctioned by the Central Government.

(3) The budget shall be prepared in accordance with such instructions as may be issued from time to time by the Central Government.

RULE 9 PRESCRIBED ADMINISTRATIVE EXPENSES

The Development Council may utilise a sum, not exceeding 2 per cent of the amount received by it underRule 5-, to meet its expenses on account of office establishment and equipment, stationery, postage, telephones, telegrams, telex, wages and allowances of staff employed in the secretariat travel and daily allowance of members, and expenditure connected with holding of Council Meetings.

SCHEDULED INDUSTRIES (SUBMISSION OF PRODUCTION RETURNS) RULES, 1979

In exercise of the powers conferred by section 30 of the Industries (Development and Regulation) Act, 1951 (65 of 1951), the Central Government hereby makes the following rules, namely:—

RULE 1 SHORT TITLE

(1) These rules may be called the Scheduled Industries (Submission of Production Returns) Rules, 1979.

(2) They shall come into force on the date of their publication in the Official Gazette.

RULE 2 APPLICATION

These rules shall apply to all the industries specified in theFirst Schedule-to the Act, except industries engaged in the manufacture or production of aircraft, arms and ammunition and all articles mentioned under the heading "23. Textiles (including those dyed, printed or otherwise processed)", in the aforesaid First Schedule, not being those made wholly or in part of jute, including jute twine and rope.

RULE 3 DEFINITIONS

In these rules, unless the context otherwise requires,—

(a) Act means theIndustries (Development and Regulation) Act, 1951 (65 of 1951)-;

(b) Form means a form attached to these rules.

RULE 4 SUBMISSION OF RETURNS

(1) The owner in relation to every industry to which these rules apply shall submit a monthly return:

(a) in the case of any industrial undertaking borne on the register of the Directorate General of Technical Development and engaged in the manufacture of any article specified in the Annexure to Form 'A' in Form A;

(b) in the case of any other industrial undertaking borne on the register of the Directorate General of Technical Development, in Form B;

(c) in the case of industrial undertakings borne on the register of the Iron and Steel Controller in Form C; or proforma prescribed by the Iron & Steel Controller; and

(d) in the case of small scale units, in Form D, furnishing information in regard to the matters specified in the respective form to; 

(i) in any case referred to in clause (a) or (b), the Directorate General of Technical Development and the Ministries administratively concerned with such industry;

(ii) in the case referred to in clause (c), the Iron and Steel Controller and the Department of Steel; and

(iii) in the case referred to in clause (d), the State Director or Commissioner of Industries, the Development Commissioner (Small Scale Industries), New Delhi and the Small Industries Service Institute.

(2) Every return in Form B shall be submitted also: 

(a) where it relates to the manufacture or production of coal, hard coke, soft coke in respect of each individual colliery unit and coke plant, to the Coal Controller;

(b) where it relates to the manufacture or production of vanaspati, to the Vanaspati Directorate; and

(c) where it relates to the manufacture or production of sugar, to the Sugar Directorate.

(3) The return in relation to any month referred to in sub-rule (1), shall be submitted before the expiry of the 15th of the month next following: 

Provided that where any Form indicates that any information is to be furnished at other intervals than the interval specified by this rule, such information shall be furnished at such other intervals.

(4) Every return referred to in sub-rule (1), submitted to the Director General, Technical Development, the Iron and Steel Controller and the authorities referred to in sub-rule (2), shall be accompanied by one copy thereof certified as true copy by the owner in relation to any industry submitting the return.

RULE 5 PENALTIES

Whoever, contravenes any of the provisions of these rules shall be punishable under section 24-of the Act.

REGISTRATION AND LICENSING OF INDUSTRIAL UNDERTAKINGS RULES, 1952

RULE 1 SHORT TITLE

-These rules may be called the Registration and Licensing of Industrial Undertakings Rules, 1952.

RULE 2 DEFINITIONS

-In these rules, unless there is anything repugnant in the subject or context,-

(i) the Act means theIndustries (Development and Regulation) Act, 1951, (65 of 1951)-;

(ii) effective steps shall mean one or more of the following:-1

[(a) that 60 per cent. or more of the capital issued for an industrial undertaking which is a public company within the meaning of theIndian Companies Act, 1913 (7 of 1913)-, has been paid-up;]

(b) that a substantial part of the factory building has been constructed;

(c) that a firm order has been placed for a substantial part of the plant and machinery required for the undertaking.

RULE 3 APPLICATION FOR REGISTRATION

-1 [(1) An application for the registration of an existing industrial undertaking shall be made, in triplicate, to the2[Ministry of Industrial Development], Government of India, New Delhi, in Form A or B, as the case may be, appended to these rules at least three months before the expiry of the period fixed under sub-section (1) ofsection 10-of the Act, in relation to that industrial undertaking; 

Provided that an application which is not made in time may be entertained by the 3[Ministry of Industrial Development], if the applicant satisfies that Ministry that there was sufficient cause for not making the application in time.

4 [(1A) Where an application for the registration of an industrial undertaking is pending at the commencement of the Industries (Development and Regulation) Amendment Act, 1953, no fresh application for such registration shall be necessary under the rule and any such pending application shall be disposed of in accordance with the provisions of these rules.]

4 [(1B) Where an industrial undertaking consists of more than one factory a separate Form A or B, as the case may be, shall be filled and sent in respect of each factory.]

5 [(2) Each application shall be accompanied by a crossed demand draft for Rs. 2,500 drawn on the State Bank of India, Nirman Bhawan, New Delhi, in favour of the Pay and Accounts Officer, Ministry of Industry (Department of Industrial Development), Government of India, New Delhi.]

RULE 4 ACIMOWLEDGMENT OF APPLICATION

-On receipt of application, the receiving officer shall note thereon the date of its receipts and shall send to the applicant an acknowledgement staring the date of receipt.

RULE 5 POWER OF CENTRAL GOVERNMENT TO ASK FOR ADDITIONAL INFORMATION

-The6[Ministry of Industrial Development] or the authority appointed by it7[in this behalf] may require the applicant to furnish within a period to be specified by it, such additional information, as it may consider necessary, for the purpose of registration.

RULE 6 GRANT OF REGISTRATION CERTIFICATE

-If an application made under sub-rule (1) ofrule 3-falls within the scope of that rule, the [Ministry of Industrial Development), shall, after such investigation, as it may consider necessary, grant to the applicant, before the [expiry of the period fixed undersection 10-of the Act], a certificate of registration in Form C appended to these rules. If an application made under sub-rule (1) ofrule 3-does not fall within the scope of that rule, the6[Ministry of Industrial Development) shall inform the applicant accordingly.

RULE 7 APPLICATION FOR LICENCE

- (1) Application for a licence of permission for the establishment of a new industrial undertaking or any substantial expansion of 8[for the production or manufacture of any new article in] an industrial undertaking shall be made before taking any of the following steps :- 

(a) raising from the public any part of the capital required for the undertaking or expansion9[or the production or manufacture of the new article];

(b) commencing the construction of any part of the factory building for the undertaking or expansion [or the production or manufacture of the new article];

(c) placing order for any part of the plant and machinery required for the undertaking or expansion9[or the production or manufacture of the new article];

9 [(1A) An application for a licence or permission for changing the location of the whole or any part of an industrial undertaking which has been registered9[or in respect of which a licence or permission has been issued] shall be made before taking any of the following steps :- 

(a) the acquisition of land or the construction of premises for the purpose of housing the industrial undertaking at the proposed new site;

(b) the dismantling of any part of the plant and machinery at the existing site].

10        [* * *]

11[(3) Each application shall be accompanied by a crossed demand draft for Rs. 2,500 drawn on the State Bank of India, Nirman Bhawan, New Delhi, in favour of the Pay and Accounts Officer, Ministry of Industry (Department of Industrial Development), Government of India, New Delhi.] Application for changing the location or permission therefor from the registered place shall be made before,- 

(a) the acquisition of the land or construction of premises;

(b) dismantling of the existing plant or machinery. Such application must be accompanied by a receipt for Rs. 500, either of the Government treasury or State Bank of India. Deposits in Bombay, Calcutta, Delhi and Madras, must be made in the Reserve Bank of India.

RULE 8 ACKNOWLEDGEMENT OF APPLICATION

-On receipt of the application, the receiving officer shall note thereon the date of its receipt, and shall send to the applicant an acknowledgement stating the date of receipt.

RULE 9 POWER TO CALL ADDITIONAL INFORMATION

-The12[Ministry of Industrial Development] or the authority appointed by it,13[in this behalf] may require the applicant to furnish, within a period to be specified by it, such additional information as it may consider necessary.

RULE 10 APPLICATION TO BE REFERRED TO COMMITTEE

- (1)The Ministry of Industrial Development shall refer the application to a committee appointed under sub-rule (2): 

14[Provided that where an application relates to the extension of the period of validity of an industrial licence or to the issue of a carry on business licence or to diversification within the existing licensed capacity in respect of such scheduled industries as may, from time to time, be decided by the Central Government, having regard to the maximum of production, better utilization of existing plant and machinery and other factors, the Ministries concerned may dispose of such application without reference to the Committee].

(2) The Ministry of Industrial Development may, by notification in the Official Gazette, appoint one or more committees, consisting of such number of members, as it may think fit, to represent,- 

(a) the Ministries of the Central Government dealing with,-  (i) the industries specified in the First Schedule to the Act; (ii) Finance; (iii) Company Affairs; and (iv) Science and Technology; and (b) the planning commission.

(3) A committee appointed under sub-rule (2), may co-opt one or more representatives of other Ministries of the Central Government, or of any state Government concerned, wherever it is necessary.

RULE 11 SUBMISSION OF REPORT BY THE COMMITTEE

-After such investigation, as may be necessary, the Committee to which an application has been referred underrule 10-shall submit a report to the Ministry of Industrial Development.

RULE 12 CONTENTS OF THE REPORT

-In making the report underrule 11-, the15[* * * ] Committee shall have regard to the approved plans, if any, of the Central Government for the development of the scheduled industry concerned and, where no such plans exist, to the existing capacity of the scheduled industry, the demand and supply position, availability of raw materials and plant and machinery. The report should, among other matters, contain recommendations regarding capital and its structure, suitability of the location proposed from the point of view of the approved plans for the industry, capacity of the plant to be installed,availability of rail-transport capacity, availability of technical and other skilled personnel required, and collaboration, if any, with foreign manufacturers.

RULE 13 RECOMMENDATION REGARDING PUBLIC ENQUIRY

-If the16[Committee referred to inrule 11-] is of the opinion that a public enquiry is necessary in respect of any application it may recommend such a step to the Ministry of16[Industrial Development].

RULE 14 INVITATION OF APPLICATIONS

(1) The Ministry of16[Industrial Development] or the authority appointed by it16[in this behalf may], where it considers necessary, invite, by means of a notice published in the Gazette of India, applications for the grant of licences for the establishment of new industrial undertakings in any scheduled industry.

(2) An application received under sub-rule (1) shall be dealt with in the manner laid down inrule 10-,rule 11-,rule 12-andrule 13-.

RULE 15 GRANT OF LICENCE OR PERMISSION

(1) The Ministry of16[Industrial Development] shall consider the report submitted to it underrule 11-, and where it decides that a licence or permission, as the case may be, should be granted it shall inform the applicant accordingly, not later than three months from the date of receipt of the application, or the date on which additional information underrule 9-is furnished, whichever is later.

(2) Where the Ministry of16[Industrial Development] considers that certain conditions shall be attached to the licence or permission, or that the licence or permission should be refused, it shall not later than three months from the date of receipt of the application or the date on which additional information underrule 9-is furnished, whichever is later, give an opportunity to the applicant to state his case, before reaching a decision.

(3) Where a licence or permission has been refused the applicant shall be informed of the reasons for such refusal.

(4) Licences or permissions shall be in Form F appended to these rules.

RULE 16 VARIATION OR AMENDMENT OF LICENCES

(1) Any owner of an industrial undertaking in respect of which a licence has been granted, who desires any variation or amendment in his licence shall apply to the Ministry of17[Industrial Development] giving the reasons for the variation of amendment.

(2) The Ministry of [Industrial Development] after carrying out such investigation, as it may consider necessary, may vary or amend the licence. The Ministry of Commerce and Industry may also consult the Licensing Committee before coming to a decision.

RULE 17 REVOCATION OF LICENCES

-The Ministry of17[Industrial Development] shall, before exercising its power of revocation of a licence under sub-section (1) ofsection 12-of the Act, give an opportunity to the licensee to state his case.

RULE 18 REVIEW OF LICENCES BY A SUB-COMMITTEE

-A sub-committee of the Central Advisory Council shall be constituted which will review all licences issued,refused, varied, amended or revoked from time to time, and advise Government on the general principles to be followed in the issue of licences for establishing new undertakings or substantial expansion of the existing undertakings. The results to the review shall be reported to the Central Advisory Council.

RULE 19 SUBMISSION OF RETURNS

(1) Every owner of an industrial undertaking in respect of which a licence or permission has been granted18[under the Act] shall send every half year ending 30th June and 31st December, commencing from the date of grant of the licence or permission, as the case may be, till such time as the industrial undertaking commences production a return19[with five spare copies] in Form G appended to these rules, to the Ministry of20[Industrial Development], Government of India, New Delhi,21[or to any authority appointed by it in this behalf. The return relating to every half year shall be sent within one month after the expiry of that half year.

21[(2) Where any condition has been attached to a licence or permission granted in respect of an industrial undertaking to the effect that certain steps should be taken within a period specified therein, every owner of such an undertaking shall send a return with five spare copies, in Form G appended to these rules, to the Ministry of [Industrial Development], Government of India, New Delhi21[of to any authority appointed by it in this behalf] showing the progress made in taking such steps at the expiry of the period so specified. The return shall be sent within a period of seven days from the expiry of the period so specified.

(3) Every owner of an industrial undertaking which has been registered by reason of effective steps having been taken for the establishment of that undertaking before the commencement of the Act shall send, every half year ending on the 30th June and the 31st December, and commencing from 31st December, 1953, till such time as the industrial undertaking commences production a return, with five spare copies, in Form G appended to these rules, to the Ministry of20[Industrial Development], Government of India, New Delhi, or to any authority appointed by it in this behalf. The return relating to every half year shall be sent within one month of the expiry of that half year].

RULE 19A NOTICE OF CERTAIN FACTS TO HE GIVEN

- (1) If there is any change in the name of registered industrial undertaking or an undertaking in respect of which a licence or permission has been granted under the Act the owner thereof, shall within fourteen days from the date of such change give notice in writing of the fact to the Ministry of20[Industrial Development], Government of India, New Delhi and forward the registration certificate or the licence, as the case may be, to that Ministry for endorsing thereon the change in the name of the undertaking.

(2) If there is any change in the owner of a registered industrial undertaking or an undertaking in respect of which a licence or permission has been granted the new owner thereof shall, within fourteen days from the date such change give notice in writing of the fact to the Ministry of22 [Industrial Development],Government of India, New Delhi, and forward the registration certificate or the licence, as the case may be, to that Ministry for endorsing thereon the change in the owner of the industrial undertaking.

(3) If by reason of (a) reduction in the number of workers employed; (b) discontinuation of the production of articles falling within the scope of the Act; or (c) any other reason, all or any of the provisions of the Act become inapplicable to a registered industrial undertaking or an undertaking in respect of which a licence or permission has been granted and continue to be so inapplicable for a period of six months, the owner thereof shall, within fourteen days of the expiry of the said period or six months give notice in writing of the fact to the Ministry of23[Industrial Development], Government of India, New Delhi.

(4) If a registered industrial undertaking or an industrial undertaking in respect of which a licence or permission has been granted, has been closed for a period exceeding thirty days, the owner thereof, shall, within seven days of the expiry of the said period of thirty days, give notice in writing of the fact to23[Industrial Development], Government of India, New Delhi.

(5) If any decision has been taken by a competent authority that a registered industrial undertaking or an industrial undertaking in respect of which a licence or permission has been granted shall be liquidated, the owner thereof shall, within fourteen days from the date of such a decision, give notice in writing of the fact to the Ministry of23[Industrial Development], Government of India, New Delhi,23[and return the registration certificate or the licence, as the case may be, to that Ministry],

RULE 19B LOSS OF REGISTRATION CERTIFICATE OR LICENCE

-Where a Registration Certificate, a licence or a permission granted under these rules, is lost, destroyed or mutilated, a duplicate may be granted on receipt of a treasury challan of Rs. 5.

RULE 20 PENALTY FOR CONTRAVENTION OF RULES

-Whosoever, contravenes or attempts to contravene or abets the contravention of any of these rules shall be punishable undersection 24-of the Act.

RULE 21 ALLOTMENT OF CONTROLLED COMMODITIES TO LICENSED UNDERTAKINGS

-The owner of an industrial undertaking in respect of which a licence or permission has been granted shall be eligible to the allotment of controlled commodities required by him for the construction or operation or for both construction and operation of his undertakings on such preferential basis as the Central Government may determine from time to time. In determining such preference the Central Government shall have due regard to the requirements of existing industrial undertakings.

RULE 22 CONCESSION IN THE GRANT OF IMPORT LICENCES TO UNDERTAKINGS

-The owner of an industrial undertaking in respect of which a licence or permission has been granted shall be eligible for the issue of licences or for the import of goods required by him for the construction or operation or for both construction and operation of his undertaking on such preferential basis as the Central Government may determine from time to time. In determining this preference which may include such concession as the submission of one consolidated application in respect of the requirements from each currency areafor all items shown as licensable to actual users, submission of separate application for highly specialised items even though such items may not be shown as licensable to actual users and priority in the matter of import from different currency areas, the Central Government shall have due regard to the requirements of existing industrial undertakings.

COMMERCIAL VEHICLES (RESTRICTION ON RE-SALE) ORDER, 1979

Whereas it appears to the Central Government that it is necessary so to do for securing the equitable distribution and availability at fair price of commercial vehicles; Now, therefore, in exercise of the powers conferred by Section 18Gof the Industries (Development and Regulation) Act, 1951 (65 of 1951), the Central Government hereby makes the following Order, namely:-

ORDER 1 SHORT TITLE, EXTENT AND COMMENCEMENT

- (1) This Order may be called the Commercial Vehicles (Restriction on Re-sale) Order, 1979.

(2) It extends to the whole of India.

(3) It shall come into force on the 21st day of March, 1979.

ORDER 2 DEFINITIONS

-In this Order, unless the context otherwise requires-

(a) "commercial vehicle" means a motor vehicle of any description specified in column (1) of the Schedule manufactured or assembled in India, or manufactured, in India from components imported into India or partly imported and partly manufactured in India, and includes every such description of motor vehicles whether called a truck chassis, bus chassis, three-wheeler, four-wheeler or by any other name;

(b) "Controller" means a person appointed by the Central Govern- ment to be the Controller of Commercial Vehicles for the purpose of this Order;

{c) "Government of a State", in relation to a Union territory, means the Administrator thereof.

(d) " Schedule" means the schedule annexed to thii Order.

ORDER 3 COMMERCIAL VEHICLES NOT TO BE RESOLD, ETC

- (1) No person shall before the expiry of two years from the date when a commercial vehicle was first purchased as a new commercial vehicles whether so purchased by him or by any person on his behalf and whether before or after the commencement of this Order, sgll or offer to sell) or eritef into any satisfaction involving the transfer of possession of, the commercial vehicle to any other person except under and in accordance with the terms and conditions of a permit in writing from the Controller or, in a State, an officer appointed for the purpose by the Government of that State.

(2) In granting or refusing a permit under sub-clause (1), the Controller or other Officer shall have regard to the circumstances relating to the proposed sale or transaction, as the case may be, and to the purposes to be served by this Order.

ORDER 4 POWER TO OBTAIN INFORMATION

-If the Controller or, in a State, an officer appointed for the purpose by the Government of that State, has reason to believe that a new commercial vehicle has been sold or its possession has been transferred before the expiry of the period of two years referred to in sub-clause (1) of Clause 3, he may require the person, who has so sold or transferred its possession, to furnish the particulars relating to such sale or transaction involving such transfer of possession as the Controller or the officer may deem fi^ including the name of the person to whom the vehicle was so sold or its possession transferred.

TWO WHEELER VEHICLES (RESTRICATION ON RESALE), ORDER, 1981

Ministry of Industry (Department of Heavy Industry), Noti. No. S.O. 735(E), dated October 6, 1981, published in the Gazette of India Extra part II, Section 3(ii), dated 6th October, 1981, pp. 1277-78 [No. 7(M)1 81-AEim] [C] In exercise of the powers conferred by Section 18G of the Industries (Development and Regulation) Act, 1951 (65 of 1951), the Central Government hereby makes the following Order, namely :-

ORDER 1 SHORT TITLE, EXTENT AND COMMENCEMENT

- (1) This Order may be called the Two Wheeler Vehicles (Restriction on Resale) Order, 1981.

(2) It extends to the whole of India.

(3) It shall come into force on the 6th day of October, 1981.

ORDER 2 DEFINITIONS

-In this Order, unless the context otherwise requires,-

(1) "two wheeler vehicles' means a motor vehicle of any description specified in column (1) of the Schedule, manufactured or assembled in India, or manufactured in India or from components imported into India or partly imported and partly manufactured in India, and includes every such description of motor vehicles, whether called a scooter, motor cycle, mini-motor cycle, moped or by any other name ;

(2) "Controller" means a person appointed as such by the State Government or the Central Government, as the case may be, for the purposes of this Order ;

(3) "State Government" in relation to a Union Territory, means the Administrator of the Union Territory ;

(4) "Schcdule" means the Schedule annexed to this Order.

ORDER 3 RESTRICTIONS ON REGALE :-

(1) On and from the commencement of this Order, no person shall, before the expiry of two years from the date when a two wheeler vehicle is first purchased as a new two wheeler vehicle, whether purchased by him or by any person on his behalf and whether purchased before or after the commencement of this Order, sell or offer to sell or enter into any transaction involving the transfer of possession of the two wheeler vehicle to any other person except under and in accordance with the terms and conditions of a permit, in writing, from the Controller who shall, where a permit is not granted, communicate to the person concerned, the reasons for such refusal.

(2) In granting or refusing a permit under sub-clause (1), the Controller shall have regard to the circumstances relating to the proposed sale or transaction, as the case may be, and to the purpose of this Order.

(3) Any person aggrieved by the refusal of the Controller to grant a permit under sub-clause (1) may, within thirty days from the date on which such refusal is communicated to him, prefer an appeal to the State Government : Provided that the State Government may entertain the appeal after the expiry of the said period of thirty days if it is satisfied that the appellant had sufficient cause for not preferring the appeal within the period aforesaid.

ORDER 4 POWER TO OBTAIN INFORMATION

-If the Controller has reason to believe that a new two wheeler vehicle has been sold or its possession has been transferred before the expiry of the period of two years referred to in sub-clause (1) of Clause 3, he may require the person, who has so sold or transferred its possession, to furnish the particulars relating to such sale or transaction involving such transfer or possession as the Controller may deem fit, including the name of the person to whom the vehicle was so sold or its possession transferred.