Sick Textile Undertakings (Nationalisation) Act, 1974

Act No. 57 of 1974 In force from 01-04-1974 Ministry of Textiles 42 sections

An Act to provide for the acquisition and transfer of the sick textile undertakings, and the right, title and interest of the owners in respect of the sick textile undertakings, specified in the First Schedule with a view to re-organising and rehabilitating such sick textile undertakings so as to subserve the interests of the general public by the augmentation of the production and distribution, at fair prices, of different verieties of cloth and yarn, and for matters connected therewith or incidental thereto.

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Chapter I: Preliminary

• 1 Short title and commencement
• 2 Definitions

Chapter II: Acquisition of the Rights of Owners of Sick Textile Undertakings

• 3 Acquisition of rights of owners in respect of sick textile undertakings 1 judgment
• 4 General effect of vesting
• 5 Owner to be liable for certain prior liabilities 1 judgment
• 6 National Textile Corporation to form subsidiary corporations
• 7 Shares to be issued by the National Textile Corporation for the value of the assets transferred to it by the Central Government

Chapter III: Payment of Amount

• 8 Payment of amount to owners of sick textile undertakings
• 9 Payment of further amount
• 10 Accounts to be rendered by the owners of sick textile undertakings

Chapter IV: Management, Etc., of Sick Textile Undertakings

• 11 Management, etc., of sick textile undertakings
• 11A Special provision for disposal of assets of the sick textile undertakings in certain circumstances
• 12 Duty of persons in charge of management of sick textile undertakings to deliver all assets, etc
• 13 Accounts

Chapter V: Provisions Relating to Employees of Sick Textile Undertakings

• 14 Employment of certain employees to continue
• 15 Provident and other funds
• 16 Transfer of employees to a Subsidiary Textile Corporation

Chapter VI: Commissioners of Payments

• 17 Appointment of Commissioners of Payments
• 18 Payment by the Central Government to the Commissioner
• 19 Certain powers of the National Textile Corporation
• 20 Claims to be made to the Commissioner
• 21 Priority of claims 1 judgment
• 22 Examination of claims
• 23 Admission or rejection of claims
• 24 Disbursement of money by the Commissioner to claimants
• 25 Disbursement of amounts to the owners of sick textile undertakings
• 26 Undisbursed or unclaimed amounts to be deposited to the general revenue account

Chapter VII: Miscellaneous

• 27 Assumption of liability
• 28 Management to continue to vest in the Custodian until alternative arrangements are made
• 29 Act to override all other enactments
• 30 Contracts to cease to have effect unless ratified by National Textile Corporation
• 31 Transfer of assets, etc., to be void in certain cases
• 32 Penalties
• 33 Offences by companies
• 34 Protection of action taken in good faith
• 35 Textile companies not to be wound up by the court
• 36 Delegation of powers
• 37 Power to make rules
• 38 Power to remove difficulties
• 39 Declaration as to the policy of the State
• 40 Repeal and savings
• 41 Validation

Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.