Section 1243 in Dalmia Dadri Cement Limited (Acquisition And Transfer of Undertakings) Act, 1981
1243.
Object and Reasons The unsatisfactory state of functioning of Messrs. Dalmia Dadri Cement Limited, one of the cement factories in the country, located at Charkhi Dadri (Haryana) with a licensed capacity of 2.39 lakhs tonnes of cement per annum has been engaged the attention of the Central Government. Due to financial difficulties resulting from mismanagement the company has closed down production in 1975. As a result of the efforts made towards the rehabilitation of the company by the State Government, Central Government and financial institutions the company restarted its production in December 1975. The performance of the company had, however, not been satisfactory and an investigation, under the provisions of the Industries (Development and Regulation) Act was carried out. The investigation Committee of this company had closed down the factory on 18th March, 1980 and the factory has been lying closed since then.2. The factory has been closed in a deficit area and its closure has aggravated the shortage of cement in this area. The factory had employed a total of about 1600 persons at the time of its closure in March, 1980 and the Management had terminated the services of these employees without giving them any retrenchment benefits. The State Government of Haryana has been continuously urging the Government of India to take over this factory is permanently closed down. The State Government of Haryana has indicated that owing to financial constraints and lack of technical expertise, the State Government is not in a position to take over this cement factory for restarting and running it.3. The liability of the factory on its restart has been assessed and in the interest of restarting production of cement and also to provide employment to the workers, the Central Government had decided that it would be in the public interest to acquire the cement factory of this company and to transfer it to the Cement Corporation of India which is a public sector undertaking engaged in the manufacture and sale of cement.4. This Bill seeks to give effect to the above object. - Gazette of India, 5-5-1981, Pt. II, Section 2 Ext. p. 361.Amendment Act 3 of 2007.- The Dalmia Dadri Cement Limited (Acquisition and Transfer of Undertakings) Act, 1981 was enacted to provide for the acquisition and transfer of the undertakings of the Dalmia Dadri Cement Limited with a view to securing the proper management of such undertakings and matters connected therewith or incidental thereto and the Central Government transferred the undertakings of the Dalmia Dadri Cement Limited to the Cement Corporation of India vide notification of the Ministry of Industry (Department of Industrial Development) number S.O. 502 (E), dated the 23rd June, 1981.2. The Cement Corporation of India Limited (CCI), being a public sector enterprise under the administrative control of the Ministry of Heavy Industries and Public Enterprises (Department of Heavy Industry), has become a sick industrial company as defined under the Sick Industrial Companies (Special Provisions) Act, 1985 and a reference in respect of which has been made to the Board for Industrial and Financial Reconstruction (BIFR) during 1996. The BIFR had circulated a Draft Rehabilitation Scheme (DRS) for revival of the CCI. The DRS, inter alia, provide for closure and sale of assets of the seven nonoperating plants and expansion or modernisation of the remaining three plants. The assets of one of the seven non-operating plants proposed to be closed, namely, the Charkhi Dadri Cement Plant in Haryana, were acquired under the provisions of the Dalmia Dadri Cement Limited (Acquisition and Transfer of Undertakings) Act, 1981.3. In view of the judgment of the Hon'ble Supreme Court of India, in the Centre for Public Interest Litigation v. Union of India, (2003) 7 SCC 532, it has been decided to suitably amend the Dalmia Dadri Cement Limited (Acquisition and Transfer of Undertakings) Act, 1981 so as to empower the CCI to close and dispose of the assets of the Charkhi Dadri Cement Plant.4. The Bill seeks to achieve the above objectives.[15th September, 1981]An Act to provide for the acquisition and transfer of the under taking of the Dalmia Dadri Cement Limited with a view to securing the proper management of such undertakings so as to subserve the interest of the general public by ensuring the continued manufacture, production and distribution of cement which is essential to the needs of the economy of the country and matters connected therewith or incidental thereto.WHEREAS Messrs. Dalmia Dadri Cement Limited had been engaged in the manufacture and production of Portland cement, an article mentioned in the First Schedule to the Industries (Development and Regulation) Act, 1951; (65 of 1951).AND WHEREAS an order has been made for the winding up of the Company and proceedings for its liquidation are pending in the High Court of Punjab and Haryana;AND WHEREAS the undertaking of the Company have not been functioning since March, 1980;AND WHEREAS it is necessary to acquire the undertaking of the said Company to ensure that the interests of the general public are served by the continuance, by the undertakings of the said Company, of the manufacture, production and distribution of Portland cement which is essential to the needs of the economy of the country;BE it enacted by Parliament in the Thirty-second Year of the Republic of India as follows:-
