Gujarat Closed Textile Undertakings (Nationalisation) Act, 1986

{
    "id": 16564,
    "slug": "gujarat-closed-textile-undertakings-nationalisation-act-1986",
    "title": "Gujarat Closed Textile Undertakings (Nationalisation) Act, 1986",
    "short_title": "Gujarat Closed Textile Undertakings (Nationalisation) Act, 1986",
    "act_number": "Gujarat Act No. 10 of 1986",
    "act_year": 1986,
    "act_type": "STATE",
    "location": "Gujarat",
    "law_status": "unknown",
    "enactment_date": null,
    "description": "Gujarat Closed Textile Undertakings (Nationalisation) Act, 1986",
    "preamble": "",
    "section_label": "Section",
    "sections": [
        {
            "number": "1",
            "title": "1. Short title and commencement.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 0
        },
        {
            "number": "2",
            "title": "2. Definitions.",
            "chapter": null,
            "content": "(a) \"appointed day\" means the 8th day of November, 1985 ;\n(b) \"bank\" means-\n(i) The State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955);\n(ii) a subsidiary bank as defined in the Sate Bank of India (subsidiary Banks) Act, 1959 (38 of 1959);\n(iii) a corresponding new bank constituted under Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970);\n[(iii-a) a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980).]\n(iv) any other bank, being a scheduled bank as defined in clause (a) of Section 2 of the Reserve Bank of India Act, 1934 (2 of 1934);\n(c) \"Commissioner\" means a Commissioner of Payments appointed under Section 12;\n(d) \"Corporation\" means the Gujarat State Textile Corporation Ltd., formed and registered under the Companies Act, 1956 (1 of 1956);\n(e) \"notification\" means a notification published in the Official Gazette ,\n(f) \"owner\" when used in relation to a specified textile undertaking, means any person or firm who or which is immediately before the appointed day, the immediate proprietor or lessee or occupier of the specified textile undertaking or any part thereof, and in the case of a textile company which is being wound up or the business whereof is being carried on by a liquidator or receiver includes such liquidator or receiver, and also includes any agent or manager of such owner;\n(g) \"prescribed\" means prescribed by rules made under this Act;\n(h) \"specified date\" means such date as the State Government may for the purpose of any provision of this Act, by notification, specify; and different dates may be specified for different provisions of this Act;\n(i) \"specified textile undertaking\" means a textile undertaking specified in the first schedule to this Act;\n(j) \"textile\" includes yarn or fabrics made either wholly or partly of cotton, wool, jute, synthetic and artificial (man-made) fibres;\n(k) \"textile company\" means a company specified in column (3) of the First Schedule as owning the textile undertaking specified in the corresponding entry in column (2) of that Schedule;\n(l) \"textile undertaking\" means an undertaking engaged in the manufacture of textiles and to which the provisions of the Factories Act, 1948 (63 of 1948) apply.\nChapter II\nAcquisition of the Rights of Owners of Specified Textile Undertakings",
            "footnote": "",
            "is_definition": true,
            "sort_order": 1
        },
        {
            "number": "3",
            "title": "3. Acquisition of right of owners in respect of textile undertakings.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 2
        },
        {
            "number": "4",
            "title": "4. General effect of vesting.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 3
        },
        {
            "number": "5",
            "title": "5. Owner to be liable for certain prior liabilities.",
            "chapter": null,
            "content": "(a) save as otherwise expressly provided in this Section or in any other Section of this Act, no liability, in relation to the appointed day shall be enforceable against the State Government or the Corporation;\n(b) no liability of the specified textile undertaking or any owner thereof for the contravention, before the appointed day, of any provision of law for the time being in force, shall be enforceable against the State Government or the Corporation.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 4
        },
        {
            "number": "6",
            "title": "6. Contributions by State Government.",
            "chapter": null,
            "content": "Chapter III\nPayment of Amount",
            "footnote": "",
            "is_definition": false,
            "sort_order": 5
        },
        {
            "number": "7",
            "title": "7. Payment of amount to owners of specified textile undertakings.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 6
        },
        {
            "number": "8",
            "title": "8. Management, etc. of specified textile undertaking.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 7
        },
        {
            "number": "9",
            "title": "9. Duty of person in charge of management of specified textile undertakings to deliver all assets, etc.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 8
        },
        {
            "number": "10",
            "title": "10. Accounts.",
            "chapter": null,
            "content": "Chapter IV\nProvisions Relating to Employees of Specified Textile Undertakings",
            "footnote": "",
            "is_definition": false,
            "sort_order": 9
        },
        {
            "number": "11",
            "title": "11. Employment of certain employees.",
            "chapter": null,
            "content": "(i) on the designated date if such person is not employed before that date by the Corporation under sub-section (1) or (2), and\n(ii) on the date of his appointment if such person is employed before the designated date by the Corporation under sub-section (1) or (2), and\n(b) A person whose services stand terminated under sub-clause (i) of clause (a) shall not be entitled to claim employment in the Corporation as of right.\n(i) payment of gratuity and of compensation for retrenchment or closure in accordance with the provisions of the Payment of Gratuity Act, 1972 (39 of 1972) and the Industrial Disputes Act, 1947 (14 of 1947), if he is a workman within the meaning of the latter Act, and\n(ii) payment of gratuity if he is not such workman :\n(b) Notwithstanding anything contained in Chapter V and not withstanding that the liability for payment of gratuity and compensation for retrenchment or closure under clause (a) is that of the owner, such liability shall be discharged by the State Government or the Corporation, according to the order of priorities mentioned in the Second Schedule and on discharge of such liability by the State Government or the Corporation the owner shall stand discharged to the extent of the liability so discharged.\n(a) the services of any person employed before the appointed day in a specified textile undertaking are terminated-\n(i) under the terms of any contract or service or otherwise of\n(ii) under sub-section (3), and\n(b) such person is entitled to any arrears of salary or wages or any payment for any leave not availed of or other payment not being payment by way of gratuity or compensation for retrenchment,\n(a) The State Government or the Corporation shall not be liable,-\n(i) to any person who has become an employee of the Corporation under sub-section (1) for payment of gratuity or any arrears of wages, or\n(ii) to any person whose services stand terminated under sub-clause (i) of clause (a) of sub-section (3) for payment of gratuity or any arrears of wages or compensation for retrenchment or closure for the period commencing from the day on which the specified textile undertaking in which such person was employed was closed and ending on the day on which such person becomes an employee of the Corporation or, as the case may be, on which his services stand terminated irrespective of whether such closure was in accordance with the provisions of the Industrial Disputes Act, 1947 (14 of 1947), or not;\n(b) the termination of services of a person under sub-clause (ii) of clause (a) of sub-section (3) on his becoming an employee of the Corporation under sub-section (1) shall not entitle such person to payment of any gratuity.\nChapter V\nCommissioners of Payments",
            "footnote": "",
            "is_definition": false,
            "sort_order": 10
        },
        {
            "number": "12",
            "title": "12. Appointment of Commissioner of Payments.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 11
        },
        {
            "number": "13",
            "title": "13. Payment by the State Government to the Commissioner.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 12
        },
        {
            "number": "14",
            "title": "14. Certain powers of the Corporation.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 13
        },
        {
            "number": "15",
            "title": "15. Claims to be made to the Commissioner.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 14
        },
        {
            "number": "16",
            "title": "16. Priority of claims.",
            "chapter": null,
            "content": "(a) Category I shall have precedence over all other categories and category II shall have precedence over categories III and IV ; and category III shall have precedence over category IV;\n(b) The claims arising out of matters specified in each category except category III shall rank equally and be paid in full, but if the amount is insufficient to meet such claims in full, they shall abate in equal proportions and be paid accordingly ;\n(c) the liabilities specified in category III shall be discharged in the manner agreed to by the State Government of one part with the banks and institutions of other parts subject to the priorities specified in this Section, in accordance with the terms of the secured loans and the priority interest of such loans ; and\n(d) the question of payment of a liability with regard to a matter specified in a lower category shall arise only if a surplus is left after meeting all the liabilities specified in the immediately higher category.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 15
        },
        {
            "number": "17",
            "title": "17. Examination of claims.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 16
        },
        {
            "number": "18",
            "title": "18. Admission or rejection of claims.",
            "chapter": null,
            "content": "(a) The summoning and enforcing the attendance of any witness and examining him on oath;\n(b) the discovery and production of any document or other material object producible as evidence;\n(c) the reception of evidence on affidavits; and\n(d) the issuing of any commission for the examination of witnesses.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 17
        },
        {
            "number": "19",
            "title": "19. Disbursement of money by Commissioner to claimants.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 18
        },
        {
            "number": "20",
            "title": "20. Disbursement of amounts to the owners of specified textile undertakings.",
            "chapter": null,
            "content": "Explanation",
            "footnote": "",
            "is_definition": false,
            "sort_order": 19
        },
        {
            "number": "21",
            "title": "21. Undisbursed or unclaimed amounts to be deposited to the general revenue account.",
            "chapter": null,
            "content": "Chapter VI\nMiscellaneous",
            "footnote": "",
            "is_definition": false,
            "sort_order": 20
        },
        {
            "number": "22",
            "title": "22. Assumption of liabilities.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 21
        },
        {
            "number": "23",
            "title": "23. Act to override all other enactments.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 22
        },
        {
            "number": "24",
            "title": "24. Contracts to cease to have effect unless ratified by Corporation.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 23
        },
        {
            "number": "25",
            "title": "25. Penalties.",
            "chapter": null,
            "content": "(a) having in his possession, custody, or control of any property forming part of the specified textile undertaking, wrongfully withholds such property from the State Government or the Corporation or any person authorised by the Government or the Corporation, as the case may be, in this behalf, or\n(b) wrongfully obtains possession of, or retains, any property forming part of the specified textile undertaking or willfully withholds or fails to furnish to the State Government, the Corporation or any person specified by the Government, or the Corporation, as the case may be, any document relating to such textile undertaking, which may be in his possession, custody or control or fails to deliver to the Corporation or any person specified by that Corporation any assets, books of account, registers or other documents in his custody relating to the specified textile undertaking, or\n(c) wrongfully removes or destroys any property forming part of the specified textile undertaking or prefers any claim under this Act which be knows or has reasonable cause to believe to be false or grossly inaccurate shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to ten thousand rupees, or with both",
            "footnote": "",
            "is_definition": false,
            "sort_order": 24
        },
        {
            "number": "26",
            "title": "26. Offences by companies.",
            "chapter": null,
            "content": "(a) \"company\" means any body corporate and includes a firm or other association of individuals ; and\n(b) \"director\" in relation to a firm, means a partner in the firm.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 25
        },
        {
            "number": "27",
            "title": "27. Protection of action taken in good faith.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 26
        },
        {
            "number": "28",
            "title": "28. Textile companies not to be wound up by the court.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 27
        },
        {
            "number": "29",
            "title": "29. Delegation of powers.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 28
        },
        {
            "number": "30",
            "title": "30. Power to make rules.",
            "chapter": null,
            "content": "(a) the time within which and the manner in which an intimation referred to in sub-section (4) of Section 4 shall be given ;\n(b) any other matter which is, required to be or may be prescribed.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 29
        },
        {
            "number": "31",
            "title": "31. Power to remove difficulties.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 30
        },
        {
            "number": "32",
            "title": "32. Declaration as to the policy of the State.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 31
        },
        {
            "number": "33",
            "title": "33. Repeal and Savings.",
            "chapter": null,
            "content": "First Schedule\n[See Sections 2 (1) (i), 2 (1) (K), 7, 13 (1) and 20 (3)]\n[See Sections 2 (1) (i), 2 (1) (K), 7, 13 (1) and 20 (3)]\nSr. No.\nSr. No.\nName of the undertaking\nName of the undertaking\nName of the owner\nName of the owner\nAmount\nAmount\n(1)\n(1)\n(2)\n(2)\n(3)\n(3)\n(4)\n(4)\n1\nThe Marsden Spining and Manufacturing Co. Ltd., Ahmedabad.\nThe Marsden Spinning and Manufacturing Co. Ltd., Ahmedabad.\n32,21,000/-\n2\nThe Monogram Mills Co. Limited, Ahmedabad.\nThe Monogram Mills Co. Limited, Ahmedabad.\n52,97,000/-\n3\nThe Bhalakia Mills Co. Ltd., Ahmedabad.\nThe Bhalakia Mills Co. Ltd., Ahmedabad.\n1,58,82,000/-\n4\nThe New Swadeshi Mills and Shri Manjushri Textiles of\n\t\t\t\tAhmedabad.\nThe New Swadeshi Mills Ltd., Ahmedabad.\n7,34,00,000/-\n5\nThe Silver Cotton Mills Co. Ltd., Ahmedabad.\nThe Silver Cotton Mills Co. Ltd., Ahmedabad.\n94,33,000/-\n6\nM/s. Manekchowk and Ahmedabad Mfg. Co. Ltd., Ahmedabad.\nM/s. Manekchowk Cotton Mfg.  Co. Ltd., Ahmedabad.\n82,30,000/-\n7\nThe Ahmedabad Cotton Mfg. Co. Ltd., (Units I and II)\n\t\t\t\tAhmedabad.\nThe Ahmedabad Cotton Mfg. Co. Ltd., Ahmedabad.\n3,08,40,000/-\n8\nAbhay Mills Ltd., Ahmedabad.\nAbhay Mills Ltd., Ahmedabad.\n1,25,90,000/-\n9\nThe Tarun Commercial Mills Ltd., Ahmedabad.\nThe Tarun Commercial Mills Ltd., Ahmedabad.\n1,45,94,000/-\n10\nThe Sarangpur Cotton Mfg. Co. Ltd., Ahmedabad.\n[The Sarangpur Cotton Mfg. Co. Ltd, Ahmedabad.]\n4,37,73,000/-\nSecond Schedule\n( See Section 7 (4), 16 and 18)\n( See Section 7 (4), 16 and 18)\nOrder of Priorities for the Discharge of Liabilities in Respect of The Textile Undertakings\nOrder of Priorities for the Discharge of Liabilities in Respect of The Textile Undertakings\nCategory I.-\nCategory I.-\n[(i) All dues including gratuity of employees in the specified textile undertaking;\n(ii) Arrears relating to contributions towards Provident Fund and contributions under the Employees' State Insurance Act, 1948 payable by the owner.]\nCategory II.-\nCategory II.-\nCategory III.-\nCategory III.-\nCategory IV -\nCategory IV -\n(i) Sundry creditors.\n(ii) Other liabilities.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 32
        }
    ],
    "metadata": {
        "Act ID": "guj026",
        "Act Number": "Gujarat Act No. 10 of 1986",
        "Enactment Date": "",
        "Act Year": "1986",
        "Short Title": "Gujarat Closed Textile Undertakings (Nationalisation) Act, 1986",
        "Type": "STATE",
        "Location": "Gujarat"
    },
    "updated_at": "2026-09-29 21:55:19"
}