Section 16D:
Power of Central Government to assume management or control of tea undertaking or tea unit in certain cases.
1[16D. Power of Central Government to assume management or control of tea undertaking or tea
unit in certain cases.--(1) If the Central Government is of opinion that--
(a) a tea undertaking or tea unit, to which directions have been issued in pursuance of section 16C
has failed to comply with such directions, or the tea undertaking or, as the case may be, the tea unit,
has made losses in three out of five years immediately preceding the year in which such opinion is
formed; or
(b) the average yield of the tea undertaking, or, as the case may be, the tea unit, during three years
out of five years immediately preceding the year in which such opinion is formed, has been lower
than the district average yield by twenty five per cent or more; or
(c) the persons owning the tea undertaking, or, as the case may be, the tea unit, have habitually
made default in the payment of wages, or provident fund dues of workers and other employees, or
rent of the land, or duties of excise, or in the payment of such other dues as are obligatory under any
law for the time being in force; or
(d) the undertaking, or, as the case may be, the tea unit, is being managed in a manner highly
detrimental to the tea industry or to public interest, the Central Government may, by notified order, authorise any person or body of persons to take over the
management of the whole or any part of the tea undertaking or tea unit, as the case may be, or to exercise
in respect of the whole or any part of the tea undertaking or, as the case may be, tea unit, such functions
of control as may be specified in the order.
(2) Any notified order issued under sub-section (1) shall have effect for such period, not exceeding
five years as may be specified in the order:
Provided that if the Central Government is of opinion that it is expedient in the public interest that
any such notified order should continue to have effect after the expiry of the period of five years
aforesaid, it may from time to time issue directions for such continuance for such period, not exceeding
one year at a time, as may be specified in the direction, so, however, that the total period of such
continuance (after the expiry of the said period of five years) does not exceed 2[six years]; and where any
such direction is issued a copy thereof shall be laid, as soon as may be, before both Houses of Parliament.
(3) Any notified order issued under sub-section (1) shall have the same effect as if it were an order
made under sub-section (1) of section 18A of the Industries (Development and Regulation) Act, 1951
(65 of 1956), and the provisions of section 18B of that Act shall apply accordingly.
(4) Notwithstanding anything contained in any law for the time being in force, no person, who ceases
to hold any office by reason of the provisions contained in clause (a), or whose contract of management is
terminated by reason of the provisions contained in clause (b), of section 18B of the Industries
(Development and Regulation) Act, 1951 (65 of 1965), as applicable to a tea undertaking or tea unit by
virtue of the provisions of sub-section (3), shall be entitled to any compensation for the loss of office or
for the premature termination of his contract of management:
Provided that nothing contained in this section shall affect the right of any such person to recover
from the tea undertaking or the tea unit, as the case may be, monies recoverable otherwise than by way of
such compensation.]
Notes:
1. Ins. by Act 75 of 1976, s. 2 (w.e.f. 11-6-1976).
2. Subs. by Act 38 of 1983, s. 2, for "two years" (w.e.f. 7-10-1983).