1. Short title, extent and commencement--(1) This Act may be called the
Industries (Development and Regulation) Act, 1951.
(2) It extends to the whole of India
(3) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint.
2. Declaration as to expediency of control by the UnionC It is hereby
declared that it is expedient in the public interest that the Union should take
under its control the industries specified in the First Schedule.
3. Definitions In this Act, unless the context otherwise requires.--
(a) AAdvisory Council@ means the Central Advisory Council established under
section 5;
(aa) Aancillary industrial undertaking@ means an industrial undertaking which, in
accordance with the proviso to sub-section (1) of section 11B and the
requirements specified under that sub-section, is entitled to be regarded as an
ancillary industrial undertaking for the purposes of this Act;
(ab) Acurrent assets@ means bank balances and cash and includes such other
assets or reserves as are expected to be realised in cash or sold or consumed
within a period of not more than twelve months in the ordinary course of
business, such as, stock-in-trade, amounts due from sundry debtors for sale of
goods and for services rendered, advance tax payments and bills receivable, but
does not include sums credited to a provident fund, a pension fund, a gratuity
fund or any other fund for the welfare of the employees, maintained by a
company owning an industrial undertaking;
(ac) Acurrent liabilities@ means liabilities which must be met on demand or
within a period of twelve months from the date they are incurred; and includes
any current liability which is suspended under section 18FB;
(b) ADevelopment Council@ means a Development Council established under
section 6;
(bb) Aexisting industrial undertaking@ means --
(a) in the case of an industrial undertaking pertaining to any of the industries
specified in the First Schedule as originally enacted, an industrial undertaking
which was in existence on the commencement of this Act or for the
establishment of which effective steps had been taken before such
commencement, and
(b) in the case of an industrial undertaking pertaining to any of the industries
added to the First Schedule by an amendment thereof, an industrial undertaking
which is in existence on the coming into force of such amendment or for the
establishment of which effective steps had been taken before the coming into
force of such amendment;
(c) Afactory@ means any premises, including the precincts thereof, in any part of
which a manufacturing process is being carried on or is ordinarily so carried on--
(i) with the aid of power, provided that fifty or more workers are working or were
working thereon on any day of the preceding twelve months; or
(ii) without the aid of power, provided that on hundred or more workers are
working or were working thereon on any day of the preceding twelve months and
provided further that in no part of such premises any manufacturing process is
being carried on with the aid of power;
(cc) AHigh Court@ means the High Court having jurisdiction in relation the place
at which the registered office of a company is situate;
(d) Aindustrial undertaking@ means any undertaking pertaining to a scheduled
industry carried on in one or more factories by any person or authority including
Government;
(ad) Anew article@, in relation to an industrial undertaking which is registered or
in respect of which a licence or permission has been issued under this Act,
means --
(a) any article which falls under an item in the First Schedule other than the item
under which articles ordinarily manufactured or produced in the industrial
undertaking at the date of registration or issue of the licence or permission, as
the case may be, fall;
(b) any article which bears a mark as defined in the Trade Marks Act, 1940 (5 of
1940), or which is the subject of a patent, if at the date of registration or issue of
the licence or permission, as the case may be, the industrial undertaking was not
manufacturing or producing such article bearing that mark or which is the subject
of that patent;
(e) Anotified order@ means an order notified in the Official Gazette;
(f) Aowner@, in relation to an industrial undertaking, means the person who, or
the authority which, has the ultimate control over the affairs of the undertaking,
and, where the said affairs are entrusted to a manager, managing director or
managing agent, such manager, managing director or managing agent shall be
deemed to be the owner of the undertaking;
(g) Aprescribed@ means prescribed by rules made under this Act;
(h) Aschedule@ means a Schedule to this Act;
(i) Ascheduled industry@ means any of the industries specified in the First
Schedule;
(j) Asmall scale industrial undertaking@ means an industrial undertaking which,
in accordance with the requirements specified under sub-section (1) of section
11B, is entitled to be regarded as a small scale industrial undertaking for the
purposes of this Act;
(k) words and expressions used herein but not defined in this Act and defined in
the Companies Act, 1956 (1 of 1956), have the meanings respectively assigned
to them in that Act.
4. [Saving.] Rep., by the Industries (Development and Regulation) Amendment
Act, 1953 (26 of 1953), s.3 (w.e.f. 1.10.1953).