Vidhi Codex

The Textile Undertakings (Nationalisation) Act, 1995

The Textile Undertakings (Nationalisation) Act, 1995

Corporate199539 sections7 chapters

The Textile Undertakings (Nationalisation) Act, 1995, oversees the permanent government takeover of fifteen specific textile mills listed in the First Schedule. It applies to the owners of these historically mismanaged companies, whose assets and rights were transferred to the National Textile Corporation, and to the thousands of employees whose jobs and retirement benefits were preserved. This law matters because it aimed to revive failing mills through significant public investment to ensure viability. By nationalizing these undertakings, the government sought to protect workers' livelihoods and ensure a steady supply of cloth for the general public.

Start reading →Read full ActSections

Chapter I PRELIMINARY →

  1. 1Short title and commencement.
  2. 2Definitions.

Chapter II ACQUISITION AND TRANSFER OF THE TEXTILE UNDERTAKINGS →

  1. 3Acquisition of rights of owners and vesting of the textile undertakings.
  2. 4General effect of vesting.
  3. 5Owner to be liable for certain prior liabilities.
  4. 6Transfer of any textile undertaking or part thereof to a subsidiary textile corporation.
  5. 7Shares to be issued by the National Textile Corporation for the value of the assets transferred to it by the Central Government.

Chapter III PAYMENT OF AMOUNTS →

  1. 8Payment of amount to owners of textile undertakings.
  2. 9Payment of further amount.

Chapter IV MANAGEMENT, ETC., OF TEXTILE UNDERTAKINGS →

  1. 10Management, etc., of textile undertakings.
  2. 11Special provision for disposal of assets of the textile undertakings in certain circumstances.
  3. 12Duty of persons in charge of management of textile undertakings to deliver all assets, etc.
  4. 13Accounts.

Chapter V PROVISIONS RELATING TO EMPLOYEES OF TEXTILE UNDERTAKINGS →

  1. 14Employment of certain employees to continue.
  2. 15Provident and other funds.
  3. 16Transfer of employees to a subsidiary textile corporation.

Chapter VI COMMISSIONERS OF PAYMENTS →

  1. 17Appointment of Commissioners of Payments.
  2. 18Payment by the Central Government to the Commissioner.
  3. 19Certain powers of the National Textile Corporation.
  4. 20Claims to be made to the Commissioner.
  5. 21Priority of claims.
  6. 22Examination of claims.
  7. 23Admission or rejection of claims.
  8. 24Disbursement of money by the Commissioner to claimants.
  9. 25Disbursement of amounts to the owners.
  10. 26Undisbursed or unclaimed amounts to be deposited to the general reserve account.

Chapter VII MISCELLANEOUS →

  1. 27Assumption of liability.
  2. 28Management to continue to vest in the custodian until alternative arrangements are made.
  3. 29Act to override all other enactments.
  4. 30Contracts to cease to have effect unless ratified by the National Textile Corporation.
  5. 31Penalties.
  6. 32Offences by companies.
  7. 33Protection of action taken in good faith.
  8. 34Textile companies not to be wound up by the court.
  9. 35Delegation of powers.
  10. 36Power to make rules.
  11. 37Power to remove difficulties.
  12. 38Repeal and saving.
  13. 39Validation.

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