The Anglo-French Textiles Limited (Acquisition and Transfer of Textile Undertaking) Act, 1986

The Anglo-French Textiles Limited (Acquisition and Transfer of Textile Undertaking) Act, 1986

This Act regulates the government acquisition and transfer of Anglo-French Textiles Limited, a closed mill in Puducherry. It applies directly to the company owners, its workers, creditors, and the local administration. The legislation matters because it enabled the Puducherry government to officially take control of the defunct mill, restart cloth production, and protect the livelihoods of thousands of unemployed workers. Additionally, it establishes a legal framework to settle the mill's outstanding debts, ensuring that worker wages, provident funds, and municipal taxes are paid first, ahead of secured banks and other commercial creditors who had lent money to the company.

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