Section 3. Definitions

THE THIRD SCHEDULE. THE INDUSTRIES (DEVELOPMENT AND REGULATION) ACT, 1951 ACT NO. 65 OF 1951 [31 st October , 1951.] 3. Definitions.— In this Act, unless the context otherwise requires, — (a) "Advisory Council" means the Central Advisory Council established under section 5; 3 [(aa) "ancillary industrial undertaking" means an industrial undertaking which, in accordance with the proviso to sub-section (1) of section 11B and the requirements specified under that sub-section, is entitled to be regarded as an ancillary industrial undertaking for the purposes of this Act;] 4[ 5[(ab)] "current assets" means bank balances and cash and includes such other assets or reserves as are expected to be realised in cash or sold or consumed within a period of not more than twelve months in the ordinary course of business, such as, stock-in-trade, amounts due from sundry debtors for sale of goods and for services rendered, advance tax payments and bills receivable, but does not include sums credited to a provident fund, a pension fund, a gratuity fund or any other fund for the welfare of the employees, maintained by a company owning an industrial undertaking; 5 [(ac)]"current liabilities" means liabilities which must be met on demand or within a period of twelve months from the date they are incurred; and includes any current liability which is suspended under section 18FB;] (b) "Development Council" means a Development Council established under section 6; 6[(bb) "existing industrial undertaking" means — (a) in the case of an industrial undertaking pertaining to any of the industries specified in the First Schedule as originally enacted, an industrial undertaking which was in existence on the commencement of this Act or for the establishment of which effective steps had been taken before such commencement, and (b) in the case of an industrial undertaking pertaining to any of the industries added to the First Schedule by an amendment thereof, an industrial undertaking which is in existence on 1. The words "except the State of Jammu and Kashmir" omitted by Act 51 of 1961, s. 2 (w.e.f. 11-12-1961). 3. The Minimum Wages Act, 1948 (11 of 1948).] 1. Ins. by Act 72 of 1971, s. 10 (w.e.f. 1-11-1971). STATEMENT OF OBJECTS AND REASONS The object of this Bill is to provide the Central Government with the means of implementing their industrial policy which was announced in their resolution No. 1 (3)-44 (13) 48 dated 6th April, 1948 and approved by the Central Legislature. The Bill brings under Central control the development and regulation of a number of important industries the activities of which affect the country as a whole and the development of which must be governed by economic factors of all India import. The planning of future development on sound and balanced lines is sought be secured by the licensing of all new undertakings by the Central Government. The Bill confers on Government power to make rules for the registration of existing undertakings, for regulating the production and development of the industries in the Schedule and for consultation with Provincial Governments on these matters. Provision has also been made for the constitution of a Central Advisory Council, prior consultation with which will be obligatory before the Central Government takes certain measures such as the revocation of a licence or taking over the control and management of any industrial concern. NEW DELHI: SYAMA PRASAD MOOKERJEE. The 21 st M arch , 1949.