19. Powers of inspection - (1) For the purpose of ascertaining the position or
working of any industrial undertaking or for any other purpose mentioned in this
Act or the rules made thereunder, any person authorised by the Central
Government in this behalf shall have the right-
(a) to enter and inspect any premises;
(b) to order the production of any document, book, register or record in the
possession or power of any person having the control of, or employed in
connection with, any industrial undertaking; and
(c) to examine any person having the control of, or employed in connection with,
any industrial undertaking.
(2) Any person authorized by the Central Government under sub-section (1) shall
be deemed to be a public servant within the meaning of section 21 of the Indian
Penal Code (45 of 1860).
20. General prohibition of taking over management or control of industrial
undertakings- After the commencement of this Act, if shall not be competent for
any State Government or a local authority to take over the management or
control of any industrial undertaking under any law for the time being in force
which authorizes any such Government or local authority so to do.
21. Certain administrative expenses of Development Councils to be paid
from moneys provided by Parliament - Such administrative expenses as relate
to the emoluments of officers of a Development Council who are appointed by or
with the approval of the Central Government, shall be defrayed out of moneys
provided by Parliament.
22. Power of the Central Government to issue directions to Development
Councils - In the exercise of its functions under this Act, every Development
Council shall be guided by such instructions as may be given to it by the Central
Government and such instructions may include directions relating to the manner
in which, and the purpose for which, any proceeds of the cess levied under
section 9 which may have been handed over to it, shall be expanded.
23. Decision of Central Government final respecting certain matter - If, for
the purposes of this Act, any question arises as to whether-
(a) there has been a substantial expansion of an industrial undertaking, or
(b) an industrial undertaking is producing or manufacturing any new article,
the decision of the Central Government thereon shall be final.
24. Penalties - (1) if any person contravenes or attempts to contravene or abets
the contravention of-
(i) the provisions of sub-section (1), or sub-section (4) of section 10 or of subsection (1) of section 11 or of section 11A or of sub-section (1) of section 13 or of
sub-section (2), (2A), (2D), (2F) and (2G) of section 29B, or
(ii) any direction issued under section 17 or sub-section (3) of section 18B, or
(iii) any order made under section 18G, or
(iv) any rule the contravention of which is made punishable under this
section,
he shall be punishable with imprisonment which may extend to six months, or
with fine which may extend to five thousand rupees, or with both, and, in the case
of continuing contravention, with an additional fine which may extend to five
hundred rupees for every day during which such contravention continues after
conviction for the first such contravention.
(2) If the person contravening any of the said provisions is a company every
person who at the time the offence was committed was in charge of, and was
responsible to the company for the conduct of the business of the company, as
well as the company, shall be deemed to be guilty of the contravention and shall
be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person
liable to any punishment provided in this Act, if he proves that the offence was
committed without his knowledge or that he exercised all due diligence to prevent
the commission of such offence.
(3) Notwithstanding anything contained in sub-section (2), where an offence
under this Act has been committed by a company and it is proved that the
offence has been committed with the consent or connivance of, or is attributable
to any neglect on the part of, any director or manager, secretary, or other officer
of the company, such director, manager, secretary or other officer shall also be
deemed to be guilty of that offence and shall be liable to be proceeded against
and punished accordingly.
Explanation.- For the purposes of this section,-
(a) Acompany@ means any body corporate and includes a firm or other
association of individuals; and
(b) Adirector@ in relation to a firm means a partner in the firm.
24A. Penalty for false statements - If any person,-
(a) when required by this Act or by any order under this Act to make any
statement or furnish any information, makes any statement or furnishes any
information which is false in any material particular and which he knows or has
reasonable cause to believe to be false or does not believe to be true; or
(b) makes any such statement as aforesaid in any book, account, record,
declaration return or other document which he is required by any order made
under this Act to maintain or furnish;
he shall be punishable with imprisonment which may extend to three months or
with fine which may extend to two thousand rupees, or with both.
25. Delegation of powers - (1) The Central Government may, by notified order,
direct that any power exercisable by it under this Act (other than the power given
to it by sections 16, 18A, 18AA and 18FA shall, in relation to such matters and
subject to such conditions, if any, as may be specified in the direction, be
exercisable also by such officer or authority (including in the said expressions
any Development Council, State Government or officer or authority subordinate
to the Central Government) as may be specified in the direction.
(2) Any power exercisable by a State Government by virtue of a direction under
sub-section (1) may, unless otherwise provided in such direction, be exercised
also by such officer or authority subordinate to that State Government as it may,
by notified order, specify in this behalf.
26. Power to issue directions - The Central Government may give directions to
any State Government as to the carrying into execution in the State of any of the
provisions of this Act or of any order or direction made thereunder.
27. Cognizance of offences - No court shall take cognizance of any offence
punishable under this Act except on a report in writing of the facts constituting
such offence made by a person who is a public servant as defined in section 21
of the Indian Penal Code (45 of 1860).
28. Burden of proof in certain cases - Where any person is prosecuted for
contravening any order made under section 18G which prohibits him from doing
an act or being in possession of a thing without lawful authority or without a
permit, licence or other document, the burden of proving that he has such
authority, permit, licence or other document shall be on him.
29. Jurisdiction of courts - (1) Subject to the provisions of sub-section (2), no
court inferior to that of a presidency magistrate or a magistrate of the first clasds
shall try any offence punishable under this Act.
(2) Any magistrate or bench of magistrates empowered, for the time being, to try
in a summary way the offence specified in sub-section 91) of section 260 of the
Code of Criminal Procedure, 1898 ( 5 of 1898), may, on application in this behalf
being made by the prosecution, try in accordance with the provisions contained
in sections 262 to 265 of the said Code any offence which consists of a
contravention of an order made under section 18G.
29A. Special provision regarding fines - Notwithstanding anything contained in
section 32 of the Code of Criminal Procedure, 1898 (5 of 1898), it shall be lawful
for any magistrate of the first class and for any presidency magistrate to pass a
sentence of fine exceeding one thousand rupees on any person convicted of any
offence under this Act.
29B. Power to exempt in special cases - (1) If the Central Government is of
opinion, having regard to the smallness of the number of workers employed or to
the amount invested in any industrial undertaking or to the desiarbility of
encouraging small undertakings generally or to the stage of development of any
scheduled industry, that it would not be in public interest to apply all or any of the
provisions of this Act thereto, it may, by notification in the Official Gazette,
exempt, subject to such conditions as it may think fit to impose, any industrial
undertaking or class of industrial undertakings or any schedule industry or class
of scheduled industries as it may specify in the notification from the operation of
all or any of the provisions of this Act or of any rule or order made thereunder.
(2) Where any notification under sub-section (1) granting any exemption is
cancelled, no owner of any industrial undertaking to which the provisions of
section 10, section 11, section 11A or clause (d) of sub-section (1) of section 13
would have applied, if the notification nunder sub-section (1) had not been
issued, shall carry on the business of the undertaking after the expiry of such
period as may be specified in the notification cancelling the exemption except
under and in accordance with a licence issued in this behalf by the Central
Government and, in the case of a State Government, except under an in
accordance with the previous permission of the Central Government.
(2A) In particular, and without prejudice to the generality of the provisions of subsection (1), the Central Government may, if it is satisfied, after considering the
recommendations made to it by the Advisory Committee constituted under subsection (2B), that it is necessary so to do for the development and expansion of
ancillary, or small scale, industrial undertakings, by notified order, direct that any
article or class of articles specified in the First Schedule shall, on and from such
date as may be specified in the notified order (hereafter in this section referred to
as the Adate of reservation@), be reserved for exclusive production by the
ancillary, or small scale, industrial undertakings (hereafter in this section referred
to as Areserved article@).
(2B) The Central Government shall, with a view to determining the nature of any
article or class of articles that may be reserved for production by the ancillary or
small scale, industrial undertakings, constitute an Advisory Committee consisting
of such persons as have in the opinion of that Government, the necessary
expertise to give advice on the matter.
(2C) The Advisory Committee shall, after considering the following matters
communicate its recommendations to the Central Government, namely:-
(a) the nature of any article or class of articles which may be produced
economically by the ancillary, or small scale, industrial undertakings;
(b) the level of employment likely to be generated by the production of such
article or class of articles by the ancillary, or small scale, industrial undertakings;
(c) the possibility of encouraging and diffusing entrepreneurship in industry;
(d) the prevention of concentration of economic power to the common detriment;
and
(e) such other matters as the Advisory Committee may think fit.
(2D) The production of any reserved article or class of reserved articles by any
industrial undertaking (not being an ancillary, or small scale, industrial
undertaking) which, on the date of reservation, is engaged in, or has taken
effective steps for, the production of any reserved article or class of reserved
articles, shall, after the commencement of the Industries (Development and
Regulation) Amendment Act, 1984, or, as the case may be, the date of
reservation, whichever is later, be subject to such conditions as the Central
Government may, by notified order, specify.
(2E) While specifying any condition under sub-section (2D), the Central
Government may take into consideration the level of production of any reserved
article or class of reserved articles achieved, immediately before the date of
reservation, by the industrial undertaking referred to in sub-section (2D), and
such other factors as may be relevant.
(2F) Every person or authority, not being the Central Government, who, or which,
is registered under section 10 or to whom, or to which, a licence has been issued
or permission has been granted under section 11 for the production of any article
or class of articles which has, or have, been subsequently reserved for the
ancillary, or small scale, industrial undertakings, shall produce, such registration
certificate, licence or permission, as the case may be, within such period as the
Central Government may, by notified order, specify in this behalf, and the Central
Government may enter therein all or any of the conditions specified by it under
sub-section (2D), including the productive capacity of the industrial undertakings
and other prescribed particulars.
(2G) The owner of every industrial undertaking (not being an ancillary, or small
scale, industrial undertaking) which, immediately before the commencement of
the Industries (Development and Regulation) Amendment Act, 1984, or the date
of reservation, whichever is later, -
(a) was engaged in the production of any article or class of articles, which has, or
have, been reserved for the ancillary, or small scale, industrial undertakings, or
(b) had before such commencement or before the date of such reservation, as
the case may be, taken effective steps for commencing the production of such
reserved article or class of reserved articles,
without being registered under section 10 or in respect of which a licence or
permission has not been issued under section 11, shall refrain from the
production of such reserved article or class or reserved articles, on and from the
date of expiry of three months from such commencement or from the date of
such reservation, whichever is later.
(2H) Every notified order made under sub-section (2A) shall be laid, as soon as
may be after it is made, before each House of Parliament, while it is in session,
for a total period of thirty days, which may be comprised in one session or in two
or more successive sessions, and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, both Houses agree in
making any modification in the notified order or both Houses agree that the
notified order should not be made, the notified order shall thereafter have effect
only in such modified form or be of no effect, as the case may be; so, however,
that any such modification or annulment shall be without prejudice to the validity
of anything previously done under the notified order.
(3) The provisions of this Act shall apply, so far as may be, in relation to the issue
of a licence or permission to any industrial undertaking referred to in sub-section
(2) as they apply in relation to the issue of a licence or permission to any
industrial undertaking referred to in sub-section (2) as they apply in relation to the
issue of a licence or permission to a new industrial undertaking.
29C. Protection of action taken under the Act - (1) No suit, prosecution or
other legal proceeding shall lie against any person for anything which is in good
faith done or intended to be done under this Act or any rule or order made
thereunder.
(2) No suit or other legal proceeding shall lie against the Government for any
damage caused or likely to be caused by anything which is in good faith done or
intended to be done in pursuance of this Act or any rule or order made
thereunder.
29D. Debts incurred by the authorised person to have priority - Every debt
arising out of any loan obtained by the authorised person for carrying on the
management of, or exercising functions of control in relation to, an industrial
undertaking or part thereof, the management of which has been taken over under
section 18A or section 18AA or section 18FA,-
(a) shall have priority over all other debts, whether secured or unsecured,
incurred before the management of such industrial undertaking was taken over,
(b) shall be preferential debt within the meaning of section 530 of the Companies
Act, 1956 (1 of 1956),
and such debts shall rank equally among themselves and be paid in full out of
the assets of the industrial undertakings unless such assets are insufficient to
meet them, in which case they shall abate in equal proportions.
30. Power to make rules - (1) The Central Government may, subject to the
condition of previous publication, make rules for carrying out the purposes of this
Act.
(2) In particular, and without prejudice to the generality of the foregoing power,
such rules may provide for all or any of the following matters, namely :-
(a) the constitution of the Advisory Council and Development Councils, the term
of office and other conditions of service of, the procedure to be followed by, and
the manner of filling casual vacancies among members of the Advisory Council
or a Development Council;
(b) the form of the statement of account to be furnished by a Development
Council;
(c) the intervals at which, the time within which, and the manner in which the
cess leviable under section 9 shall be payable and the rebate for the prompt
payment of such cess;
(d) the expenses which a Development Council may meet from the proceeds of
the cess levied under section 9 which may have been handed over to it;
(e) the appointment by or with the approval of the Central Government of any
officers of a Development Council;
(f) the facilities to be provided by any industrial undertaking for the training of
technicians and labour;
(g) the collection of any information or statistics in respect of any scheduled
industry;
(h) the manner in which industrial undertakings may be registered under section
10 and the levy of a fee therefor;
(i) the procedure for the grant or issue of licences and permissions under section
11, section 11A, section 13 or section 29B, the time within which such licences or
permissions shall be granted or issued including, in particular, the publication of
notices calling for applications and the holding of such public inquiry in relation
thereto as may be necessary in the circumstances;
(j) the fees to be levied in respect of licences and permissions issued under this
Act;
(k) the matters which may be taken into account in the granting or issuing of
licences and permissions, including in particular, the previous consultation by the
Central Government with the Advisory Council or any Development Council or
both in regard to the grant or issue of any such licences or permission;
(l) the procedure to be followed in making any investigation under this Act;
(m) the conditions which may be included in any licences and permissions;
(n) the conditions on which licences and permissions may be varied or amended
under section 12;
(o) the maintenance of books, accounts and records relating to an industrial
undertaking;
(p) the submission of special or periodical returns relating to an industrial
undertaking by persons having the control of, or employed in connection with,
such undertaking, and the forms in which, and the authorities to which, such
returns and reports shall be submitted;
(pp) any matter which is to be or may be prescribed for giving effect to the
provisions of Chapter IIIAA or Chapter IIIAC;
(q) any other matter which is to be or may be prescribed under this Act.
(3) Any rule made under this section may provide that a contravention thereof
shall be punishable under section 24.
(4) Every rule made under this section shall be laid, as soon as may be
after it is made before each House of Parliament, while it is in session,
for a total period of thirty days which may be comprised in one session
or in two or more successive sessions, and if, before the expiry of the
session immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the rule or
both Houses agree that the rule should not be made, the rule shall
thereafter have effect only in such modified form or be of no effect, as
the case may be; so, however, that any such modification or annulment
shall be without prejudice to the validity of anything previously done
under that rule.
31. Application of other laws not barred--The provisions of this Act shall be
in addition to and not, save as otherwise, expressly provided in this Act, in
derogation of any other Central Act for the time being in force, relating to any of
the scheduled industries.
32. Amendment of section 2, Act 14 of 1947.-- Rep. By Repealing and Amending
Act, 1957 (36 of 1957), s.2 and Sch.I.