1[18A. Power of Central Government to assume management or control of an industrial
undertaking in certain cases.—(1) If the Central Government is of opinion that—
(a) an industrial undertaking to which directions have been issued in pursuance of section 16 has
failed to comply with such directions, or
(b) an industrial undertaking in respect of which an investigation has been made under section 15
(whether or not any directions have been issued to the undertaking in pursuance of section 16), is
being managed in a manner highly detrimental to the scheduled industry concerned 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 undertaking or to exercise in respect of the whole or any part
of the undertaking 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:
2[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
two years 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 3[twelve years]; and where
any such direction is issued, a copy thereof shall be laid, as soon as may be, before both Houses of
Parliament.]
Explanation.—The power to authorise a body of persons under this section to take over the
management of an industrial undertaking which is a company includes also a power to appoint any
individual, firm or company to be the managing agent of the industrial undertaking on such terms and
conditions as the Central Government may think fit.]
1. Ins. by Act 26 of 1953, s. 13 (w.e.f. 1-10-1953).
2. Subs. by Act 6 of 1965, s. 2, for the proviso (w.e.f. 29-3-1965).
3. Subs. by Act 32 of 1974, s. 2, for "ten years " (w.e.f. 29-6-1974).