Indian Kanoon - Search engine for Indian Law

11. Mr. Advocate-General contended that Section 18A of the Parliament Act of 1951 showed that if the Central Government wanted to take over a management it could be done only by notified order in the Official Gazette and unless and until there was such a notified order the Central Government did not or could not take over the management of the undertaking. There is no definition of control in the Act of 1951 and Mr. Advocate-General contended that the Central Government had not taken control of Orienta.1 Gas Company Limited. Mr. Advocate-General further contended that the power to investigate was under the Parliament Act of 1951 and similarly the power to issue directions was under Section 16 of the Act of 1951. If directions given by Central Government under Section 16 had not been complied with the Central Government might by notified order take over the management. Similarly, if an investigation under. Section 15 of the Act showed that an Industrial undertaking was being managed in a manner detrimental to the scheduled Industry or to public interest the Central Government might take over the management by notified order. Mr. Advocate-General referred to Section 30 of the Act of 1951 which conferred power on the Central Government to make rules, inter alia, for the procedure to be followed in making any investigation under the Act. In my opinion the contentions of Mr. Advocate-General are correct. The Central Government has under the Act power to investigate as also power to issue directions. Such powers of investigation and/or issue of directions are not taking over control or management of an Industrial undertaking. The Central Government in my opinion does not take over the management or control of an Industrial undertaking without a notified order. Mr. Advocate-General further contended that if by Section 2 of the Act of 1951 control of the scheduled Industries had vested in the Central Government all Industries engaged in the manufacture or production of Iron and Steel metal and Iron and Steel Pipes had already vested under the control of the Union. Such an interpretation, he contended, would be illogical and absurd. The powers under Sec-' tions 15 and 16 of the Act are in my opinion meant to regulate and develop industries. Direct management or control of industrial undertaking is an entirely different matter, and is dealt with under Chapter 3A. It was contended on behalf of the petitioner that Oriental Gas Company Limited was registered in September 21, 1952 under the Act of 1951 and the registration number was R/3/8 and therefore by registration it became a controlled industry. In my opinion registration is totally different to taking over management. Mr. Advocate-General contended that the language of Section 2 of the Act of 1951 was that it is expedient that the Union should take under its control the industries and not that the Union was by that section clothed with control of the Industries. If and when the Central Government was of opinion under Section 18A of the Act of 1951 that an industrial undertaking had failed to comply with the directions or that it was being managed in a manner detrimental to the public interest the Central Government might by notified order take over the management or control and exercise such functions as might be specified in the order. The other powers contemplated in Chap. 2 or in Chap. 3 are powers under the Act, not for taking over the management and control of the undertaking. I therefore hold that in the absence of a notified order under Section 18A of the Parliament Act of 1951 the Central Government does not take over the management of an industrial undertaking and no control of a particular undertaking is acquired in the absence of a notified order.