The Gujarat Sick Textile Undertakings (Nationalisation) Act, 1986

{
    "id": 16851,
    "slug": "the-gujarat-sick-textile-undertakings-nationalisation-act-1986",
    "title": "The Gujarat Sick Textile Undertakings (Nationalisation) Act, 1986",
    "short_title": "The Gujarat Sick Textile Undertakings (Nationalisation) Act, 1986",
    "act_number": "Gujarat Act No. 25 of 1986",
    "act_year": 1986,
    "act_type": "STATE",
    "location": "Gujarat",
    "law_status": "unknown",
    "enactment_date": null,
    "description": "The Gujarat Sick 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 1st day of January, 1986;\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 State 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(iv) a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980);\n(v) any other bank, being a scheduled bank as defined in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934);\n(vi) the Industrial Finance Corporation of India established under section 3 of the Industrial Finance Corporation Act, 1948 (11 of 1948);\n(vii) the Industrial Development Bank of India established under section 3 of the Industrial Development Bank of India Act, 1964 (18 of 1964);\n(c) \"Commissioner\" means a Commissioner of Payments appointed under section 14;\n(d) \"Corporation\" means the Gujarat State Textile Corporation Limited formed and registered under the Companies Act, 1956 (16 of 1956);\n(e) \"notification\" means a notification published in the Official Gazette;\n(f) \"owner\" when used in relation to a sick 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 sick 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 but does not include any person or body of persons authorised under the Industries (Development and Regulation) Act, 1951(65 of 1951), to take over the management of the whole or any part of the sick textile undertaking;\n(g) \"prescribed\" means prescribed by rules made under this Act;\n(h) \"sick textile undertaking\" means a textile undertaking, specified in the First Schedule, the management of which has, before the appointed day, been taken over by the Central Government under the Industries (Development and Regulation) Act, 1951 (65 of 1951), or as the case may be, vested in the Corporation as a lessee;\n(i) \"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(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 Sick Textile Undertakings",
            "footnote": "",
            "is_definition": true,
            "sort_order": 1
        },
        {
            "number": "3",
            "title": "3. Acquisition of rights of owners in respect of sick 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 sick textile undertaking in respect of any period to the appointed day, shall be enforceable against the State Government or the Corporation;\n(b) no liability of the sick 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. Contribution by the 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 owner of sick textile undertakings.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 6
        },
        {
            "number": "8",
            "title": "8. Payment of further amount.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 7
        },
        {
            "number": "9",
            "title": "9. Management, etc. of sick textile undertakings.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 8
        },
        {
            "number": "10",
            "title": "10. Duty of persons in charge of management of sick textile undertakings to deliver all assets, etc..",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 9
        },
        {
            "number": "11",
            "title": "11. Accounts.",
            "chapter": null,
            "content": "Chapter IV\nProvisions Relating to Employees of Sick Textile Undertakings",
            "footnote": "",
            "is_definition": false,
            "sort_order": 10
        },
        {
            "number": "12",
            "title": "12. Employment of certain employees to continue.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 11
        },
        {
            "number": "13",
            "title": "13. Provident and other funds.",
            "chapter": null,
            "content": "Chapter V\nCommissioner of Payments",
            "footnote": "",
            "is_definition": false,
            "sort_order": 12
        },
        {
            "number": "14",
            "title": "14. Appointment of Commissioner of Payments.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 13
        },
        {
            "number": "15",
            "title": "15. Payment by the State Government to the Commissioner.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 14
        },
        {
            "number": "16",
            "title": "16. Certain powers of the Corporation.",
            "chapter": null,
            "content": "(a) in the case where the management of a textile undertaking specified in the First Schedule has been taken over by the Central Government under the Industries (Development and Regulation) Act, 1951 (65 of 1951), the body or body of persons authorised by the Central Government to take over the management, and\n(b) in the case of a textile undertaking specified in the First Schedule which has vested in the Corporation as a lessee, the Corporation.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 15
        },
        {
            "number": "17",
            "title": "17. Claim to be made to the Commissioner.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 16
        },
        {
            "number": "18",
            "title": "18. Priority of claims.",
            "chapter": null,
            "content": "(a) Category I shall have precedence over all other categories and category II shall have precedence over category III and so on;\n(b) the claims specified in each category except item (i) of Category II relating to the Industrial Development Bank of India,. The Industrial Finance Corporation of India and any bank 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 item (i) of Category II relating to the Industrial Development Bank of India, the Industrial Finance Corporation of India and any bank shall be discharged in the manner agreed to by the State Government of one part with the banks and institutions of other part subject to the priorities specified in this section, in accordance with the terms of the secured loans and the priority inter se 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": 17
        },
        {
            "number": "19",
            "title": "19. Examination of claims.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 18
        },
        {
            "number": "20",
            "title": "20. 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;\n(d) the issuing of any commission for the examination of witnesses.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 19
        },
        {
            "number": "21",
            "title": "21. Disbursement of money by the Commissioner to claimants.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 20
        },
        {
            "number": "22",
            "title": "22. Disbursement of amount to the owner of sick textile undertakings.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 21
        },
        {
            "number": "23",
            "title": "23. Undisbursed or unclaimed amount to be transferred amount to the general revenue account.",
            "chapter": null,
            "content": "Chapter VI\nMiscellaneous",
            "footnote": "",
            "is_definition": false,
            "sort_order": 22
        },
        {
            "number": "24",
            "title": "24. Payment of certain liabilities as an advance.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 23
        },
        {
            "number": "25",
            "title": "25. Act to override all other enactment.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 24
        },
        {
            "number": "26",
            "title": "26. Contract to cease to have effect unless ratified by Corporation.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 25
        },
        {
            "number": "27",
            "title": "27. Penalties.",
            "chapter": null,
            "content": "(a) having in his possession, custody or control any property forming part of the sick textile undertakings, 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 sick textile undertaking or wilfully 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 sick 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 textile undertaking, or\n(c) wrongfully removes or destroys any property forming part of the textile undertaking or prefers any claim under this Act which he 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 the fine which may extend to ten thousand rupees, or with both.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 26
        },
        {
            "number": "28",
            "title": "28. 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": 27
        },
        {
            "number": "29",
            "title": "29. Protection of action taken in good faith.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 28
        },
        {
            "number": "30",
            "title": "30. Textile companies not to be wound up by the Court.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 29
        },
        {
            "number": "31",
            "title": "31. Delegation of powers.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 30
        },
        {
            "number": "32",
            "title": "32. 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) shall be given;\n(b) the manner in which monies in any provident or other fund referred to in section 13 shall be dealt with;\n(c) any other matter which is required to be, or may be prescribed.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 31
        },
        {
            "number": "33",
            "title": "33. Power to remove difficulties.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 32
        },
        {
            "number": "34",
            "title": "34. Declaration as to the Policy of the State.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 33
        },
        {
            "number": "35",
            "title": "35. Protection in respect of certain contraventions or failures.",
            "chapter": null,
            "content": "",
            "footnote": "",
            "is_definition": false,
            "sort_order": 34
        },
        {
            "number": "36",
            "title": "36. Repeal and Savings.",
            "chapter": null,
            "content": "First Schedule\n( See Sections 2(1)(H), 2(1)(K), 7, 15 and 22(3))\n( See Sections 2(1)(H), 2(1)(K), 7, 15 and 22(3))\nSr. No.\nSr. No.\nName of the undertaking\nName of the undertaking\nName of the owner\nName of the owner\nAmount (Rs. In lakhs)\nAmount (Rs. In lakhs)\n1\n1\n2\n2\n3\n3\n4\n4\n1\nPriyalaxmi Textile Mills, Baroda.\nKesaria Investmnet Limited, New Delhi\n676.48\n2\nShri Shubhlaxmi Mills Ltd., Cambay.\nShri Shubhlaxmi Mills Lts., Cambay.\n663.64\n3\nKanti Cotton Mills Pvt. Ltd., Surendranagar.\nKanti Cotton Mills Pvt. Ltd., Surendranagar.\n179.97\n4\nNew Jahangir Vakil Millas Co. Ltd., Bhavnagar.\nNew Jahangir Vakil Mills Co., Ltd., Bhavnagar\n561.49\nSecond Schedule\n( See Sections 7(2), 18, 19, 20 and 22)\n( See Sections 7(2), 18, 19, 20 and 22)\nOrder of Priorities for the Discharge of Liabilities in Respect of the Sick Textile Undertakings\nOrder of Priorities for the Discharge of Liabilities in Respect of the Sick Textile Undertakings\nCategory I\nCategory I\n(i) All dues of employees of the sick textile undertaking relating to pre-take over management period and post-take over management period.\n(ii) Arrears relating to contribution towards provident fund/contributions under the Employees' State Insurance Act, 1948 payable by the owner.\nCategory II\nCategory II\n(i) Loans inclusive of interest advanced by the Central or the State Government, Gujarat State Textile Corporation Ltd., Industrial Development Bank of India, Industrial Finance Corporation of India and any bank.\n(ii) Sundry creditors of the post take-over management period.\nCategory III\nCategory III\n(i) Arrears of excise duty, sales tax and other statutory dues of Government and dues relating to electricity and dues of a local authority of pre-take over management period.\n(ii) Sundry creditors of pre-take over management period.\n(iii) Other liabilities.",
            "footnote": "",
            "is_definition": false,
            "sort_order": 35
        }
    ],
    "metadata": {
        "Act ID": "guj191",
        "Act Number": "Gujarat Act No. 25 of 1986",
        "Enactment Date": "",
        "Act Year": "1986",
        "Short Title": "The Gujarat Sick Textile Undertakings (Nationalisation) Act, 1986",
        "Type": "STATE",
        "Location": "Gujarat"
    },
    "updated_at": "2026-09-29 21:55:19"
}