Report No. 250
55. Sick Textile Undertakings (Taking Over of Management) Act, Act 72 of 1972
The Act provided for the taking over, in public interest, of the management of the sick textile undertakings, pending nationalisation of such undertakings. This was done for the expeditious rehabilitation of such undertakings so as to serve the interests of the general public by the augmentation of the production and distribution, at fair prices, of cheaper varieties of cloth.
The nationalisation of the sick textile undertakings was carried out by means of the Sick Textile Undertakings (Nationalisation) Act, 1974. Hence, the Taking over of Management Act has now served its purpose and the Central Government should repeal this Act. A suitable savings clause should be inserted into the repealing Act. This Act has also been recommended for repeal by the PC Jain Commission Report (Appendix A-1).