10. Registration of existing industrial undertakings C (1) The owner of every
existing industrial undertaking, not being the Central Government, shall, within
such period as the Central Government may, by notification in the Official
Gazette, fix in this behalf with respect to industrial undertakings generally or with
respect to any class of them, register the undertaking in the prescribed manner.
(2) The Central Government shall also cause to be registered in the same
manner every existing industrial undertaking of which it is the owner.
(3) Where an industrial undertaking is registered under this section, there shall
be issued to the owner of the undertaking or the Central Government, as the
case may be, a certificate of registration containing the productive capacity of the
industrial undertaking and such other particulars as may be prescribed.
(4) The owner of every industrial undertaking to whom a certificate of registration
has been issued under this section before the commencement of the Industries
(Development and Regulation) Amendment Act, 1973 (67 of 1973), shall, if the
undertaking falls within such class of undertakings as the Central Government
may, by notification in the Official Gazette, specify in this behalf, produce, within
such period as may be specified in such notification, the certificate of registration
for entering therein the productive capacity of the industrial undertaking and other
prescribed particulars.
(5) In specifying the productive capacity in any certificate of registration issued
under sub-section (3), the Central Government shall take into consideration the
productive or installed capacity of the industrial undertaking as specified in the
application for registration made under sub-section (1), the level of production
immediately before the date on which the application for registration was made
under sub-section (1), the level of the highest annual production during the three
years immediately preceding the introduction in Parliament of the Industries
(Development and Regulation) amendment Bill, 1973, the extent to which
production during the said period was utilised for export and such other factors
as the Central Government may consider relevant including the extent of
underutilisation of capacity, if any, during the relevant period due to any cause.
10A. Revocation of registration in certain cases C If the Central Government
is satisfied that the registration of any industrial undertaking has been obtained
by misrepresentation as to an essential fact or that any industrial undertaking has
ceased to be registrable under this Act by reason of any exemption granted
under this Act becoming applicable thereto or that for any other reason the
registration has become useless or ineffective and therefore requires to be
revoked the Central Government may after giving an opportunity to the owner of
the undertaking to be heard revoke the registration.
11. Licensing of new industrial undertakings C (1) No person or authority
other than the Central Government, shall, after the commencement of this Act,
establish any new industrial undertaking, except under and in accordance with a
licence issued in that behalf by the Central Government:
Provided that a Government other than the Central Government may, with the
previous permission of the Central Government, establish a new industrial
undertaking.
(2) A licence or permission under sub-section (1) may contain such conditions
including, in particular, conditions as to the location of the undertaking and the
minimum standards in respect of size to be provided therein as the Central
Government may deem fit to impose in accordance with the rules, if any, made
under section 30.
11A. Licence for producing or manufacturing new articles C The owner of an
industrial undertaking not being the Central Government which is registered
under section 10 or in respect of which a licence or permission has been issued
under section 11 shall not produce or manufacture any new article unless --
(a) in the case of an industrial undertaking registered under section 10, he has
obtained a licence for producing or manufacturing such new article; and
(b) in the case of an industrial undertaking in respect of which a licence or
permission has been issued under section 11, he has had the existing licence or
permission amended in the prescribed manner.
11B. Power of Central Government to specify the requirements which shall
be complied with by small scale industrial undertakings - (1) The Central
Government may, with a view to ascertaining which ancillary and small scale
industrial undertakings need supportive measures, exemptions or other
favourable treatment under this Act to enable them to maintain their viability and
strength so as to be effective in -
(a) promoting in a harmonious manner the industrial economy of the country and
easing the problem of unemployment, and
(b) securing that the ownership and control of the material resources of the
community are so distributed as best to subserve the common good,
specify, having regard to the factors mentioned in sub-section (2), by notified
order, the requirements which shall be complied with by an industrial undertaking
to enable it to be regarded, for the purposes of this Act, as an ancillary, or a small
scale, industrial undertaking and different requirements may be so specified for
different purposes or with respect to industrial undertakings engaged in the
manufacture or production of different articles :
Provided that no industrial undertaking shall be regarded as an ancillary
industrial undertaking unless it is, or is proposed to be, engaged in -
(i) the manufacture of parts, components, sub-assemblies, toolings or
intermediates; or
(ii) rendering of services, or supplying or rendering, not more than fifty per cent of
its production or its total services, as the case may be, to other units for
production of other articles.
(2) The factors referred to in sub-section (1) are the following, namely :-
(a) the investment by the industrial undertaking in -
(i) plant and machinery, or
(ii) land, buildings, plant and machinery;
(b) the nature of ownership of the industrial undertaking;
(c) the smallness of the number of workers employed in the industrial
undertaking;
(d) the nature, cost and quality of the product of the industrial undertaking;
(e) foreign exchange, if any, required for the import of any plant or machinery by
the industrial undertaking; and
(f) such other relevant factors as may be prescribed.
(3) A copy of every notified order proposed to be made under sub-section (1)
shall be laid in draft 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
disapproving the issue of the proposed notified order or both Houses agree in
making any modification in the proposed notified order, the notified order shall
not be made, or, as the case may be, shall be made only in such modified form
as may be agreed upon by both the Houses.
(4) Notwithstanding anything contained in sub-section (1), an industrial
undertaking which, according to the law for the time being in force, fell,
immediately before the commencement of the Industries (Development and
Regulation) Amendment Act, 1984, under the definition of an ancillary, or small
scale, industrial undertaking, shall, after such commencement, continue to be
regarded as an ancillary, or small scale, industrial undertaking for the purposes
of this Act until the definition aforesaid is altered or superseded by any notified
order made under sub-section (1).
12. Revocation and amendment of licences in certain cases - (1) If the
Central Government is satisfied, either on a reference made to it in this behalf or
otherwise, that any person or authority, to whom or to which, a licence has been
issued under section 11, has, without reasonable cause, failed to establish or to
take effective steps to establish the new industrial undertaking in respect of
which the licence has been issued within the time specified therefor or within
such extended time as the Central Government may think fit to grant in any case,
it may revoke the licence.
(2) Subject to any rules that may be made in this behalf, the Central Government
may also vary or amend any licence issued under section 11:
Provided that no such power shall be exercised after effective steps have been
taken to establish the new industrial undertaking in accordance with the licence
issued in this behalf.
(3) The provisions of this section shall apply in relation to a licence issued under
section 11A or where a licence has been amended under that section, to the
amendment thereof, as they apply in relation to a licence issued under section
11.
13. Further provision for licensing or industrial undertakings in special
cases - (1) No owner of an industrial undertaking, other than the Central
Government, shall -
(a) in the case of an industrial undertaking required to be registered under
section 10, but which has not been registered within the time fixed for the
purpose under that section, carry on the business of that undertaking after the
expiry of such period, or
(b) in the case of an industrial undertaking the registration in respect of which has
been revoked under section 10A, carry on the business of the undertaking after
the revocation, or
(c) in the case of an industrial undertaking to which the provisions of this Act did
not originally apply but became applicable after the commencement of this Act
for any reason, carry on the business of the undertaking after the expiry of three
months from the date on which the provisions of this Act became so applicable,
or
(d) effect any substantial expansion of an industrial undertaking which has been
registered or in respect of which a licence or permission has been issued, or
(e) change the location of the whole or any part of an industrial undertaking
which has been registered,
except under, and in accordance with, a licence issued in that behalf by the
Central Government, and, in the case of a State Government, except under and
in accordance with the previous permission of the Central Government.
(2) The provisions of sub-section (2) of section 11 and of section 12 shall apply,
so far as may be, in relation to the issue of licences or permissions to any
industrial undertaking referred to in this section as they apply in relation to the
issue of licences or permissions to a new industrial undertaking.
Explanation - For the purposes of this section, Asubstantial expansion@means
the expansion of an existing industrial undertaking which substantially increases
the productive capacity of the undertaking, or which is of such a nature as to
amount virtually to a new industrial undertaking, but does not include any such
expansion as is normal to the undertaking having regard to its nature and the
circumstances relating to such expansion.
14. Procedure for the grant of licence or permission - Before granting any
licence or permission under section 11, section 11A, section 13 or section 29B,
the Central Government may require such officer or authority as it may appoint
for the purpose, to make a full and complete investigation in respect of
applications received in this behalf and report to it the result of such investigation
and in making any such investigation, the officer or authority shall follow such
procedure as may be prescribed.
15. Power to cause investigation to be made into scheduled industries or
industrial undertakings - Where the Central Government is of the opinion that -
(a) in respect of any scheduled industry or industrial undertaking or undertakings-
(i) there has been, or is likely to be, a substantial fall in the volume of production
in respect of any article or class of articles relatable to that industry or
manufactured or produced in the industrial undertaking or undertakings, as the
case may be; for which, having regard to the economic conditions prevailing,
there is no justification; or
(ii) there has been, or is likely to be, a marked deterioration in the quality of any
article or class of articles relatable to that industry or manufactured or produced
in the industrial undertaking or undertakings, as the case may be, which could
have been or can be avoided; or
(iii) there has been or is likely to be a rise in the price of any article or class of
articles relatable to that industry or manufactured or produced in the industrial
undertaking or undertakings, as the case may be, for which there is no
justification; or
(iv) it is necessary to take any such action as is provided in this Chapter for the
purpose of conserving any resources of national importance which are utilised in
the industry or the industrial undertaking or undertakings, as the case may be; or
(b) any industrial undertaking is being managed in a manner highly detrimental to
the scheduled industry concerned or to public interest,
the Central Government may make or cause to be made a full and complete
investigation into the circumstances of the case by such person or body of
persons as it may appoint for the purpose.
15A. Power to investigate into the affairs of a company in liquidation - (1)
Where a company, owing an industrial undertaking, is being wound up by or
under the supervision of the High Court, and the business of such company is
not being continued, the Central Government may, if it is of opinion that it is
necessary, in the interests of the general public and, in particular, in the interests
of production, supply or distribution of articles or class of articles relatable to the
concerned scheduled industry, to investigate into the possibility of running or restarting the industrial undertaking, make an application to the High Court praying
for permission to make, or cause to be made, an investigation into such
possibility by such person or body of persons as that Government may appoint
for the purpose.
(2) Where an application is made by the Central Government under sub-section
(1), the High Court shall, notwithstanding anything contained in the Companies
Act, 1956 (7 of 1956), or in any other law for the time being in force, grant the
permission prayed for.
16. Powers of Central Government on completion of investigation under
section 15- (1) If after making or causing to be made any such investigation as is
referred to in section 15 the Central Government is satisfied that action under this
section is desirable, it may issue such directions to the industrial undertaking or
undertakings concerned as may be appropriate in the circumstances for all or
any of the following purposes, namely:-
(a) regulating the production of any article or class of articles by the industrial
undertaking or undertakings and fixing the standards of production;
(b) requiring the industrial undertaking or undertakings to take such steps as the
Central Government may consider necessary to stimulate the development of the
industry to which the undertaking or undertakings relates or relate;
(c) prohibiting the industrial undertaking or undertakings from resorting to any act
or practice which might reduce its or their production, capacity or economic
value;
(d) controlling the prices, or regulating the distribution, of any article or class of
articles which have been the subject-matter of investigation.
(2) Where a case relating to any industry or industrial undertaking or
undertakings is under investigation, the Central Government may issue at any
time any direction of the nature referred to in sub-section (1) to the industrial
undertaking or undertakings concerned, and any such direction shall have effect
until it is varied or revoked by the Central Government.
17. [Special provisions for direct control by Central Government in certain cases.]
Rep. by the Industries (Development and Regulation) Amendment Act, 1953 (26
of 1953), s.12 (w.e.f. 1-10-1053).
18. Power of person or body of persons appointed under section 15 to call
for assistance in any investigation - (1) The person or body of persons
appointed to make any investigation under section 15 [or section 15A] may
choose one or more persons possessing special knowledge of any matter
relating to the investigation to assist him or it in holding the investigation.
(2) The person or body of persons so appointed shall have all the powers of a
civil court under the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of
taking evidence on oath (which he or it is hereby empowered to administer) and
of enforcing the attendance of witnesses and compelling the production of
documents and material objects, and the person or body of persons shall be
deemed to be a civil court for all the purposes of section 195 and Chapter XXXV
of the Code of Criminal Procedure, 1898 (5 of 1898).