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Section18A
The Industries (Development and Regulation) Act, 1951

Power of Central Government to assume management or control of an industrial undertaking in certain cases

In force Act 65 of 1951 As on 20 Oct 2026

Act 65 of 1951 Ministry Commerce and Industry Enacted 31 Oct 1951 Cited by 11 provisions

Commencement. 08-05-1952, 15-02-1962

Section 18A of the Industries (Development and Regulation) Act, 1951 deals with power of Central Government to assume management or control of an industrial undertaking in certain cases. 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 The Act was enacted on 31 Oct 1951.

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.]

Section 18A, The Industries (Development and Regulation) Act, 1951 (Act 65 of 1951).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

  1. s. 15 Power to cause investigation to be made into scheduled industries or industrial undertakings
  2. s. 16 Powers of Central Government on completion of investigation under section 15

Referred to by 11

  1. s. 18AA Power to take over industrial undertakings without investigation under certain circumstances
  2. s. 18B Effect of notified order under section 18A
  3. s. 18C Contracts in bad faith, etc., may be cancelled or varied
  4. s. 18E Application of Act 7 of 1913
  5. s. 18F Power of Central Government to cancel notified order under section 18A
  6. s. 18FB Power of Central Government to make certain declarations in relation to industrial undertakings, the management or control of which has been taken over under section 18A, section 18AA or section 18FA
  7. s. 18FC Power of Central Government to call for report on the affairs and working of managed company
  8. s. 18FD Decision of Central Government in relation to managed Company
  9. s. 18FF Provisions where Government decides to follow the course of action specified in section 18FD (2)
  10. s. 18FG Preparation of inventory of assets and liabilities and list of members and creditors of managed company
  11. s. 29D Debts incurred by the authorised person to have priority

Questions about Section 18A

What does Section 18A of the Industries (Development and Regulation) Act deal with?

Section 18A of the Industries (Development and Regulation) Act is headed "Power of Central Government to assume management or control of an industrial undertaking in certain cases". [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

How do I find court cases under Section 18A of the Industries (Development and Regulation) Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Industries (Development and Regulation) Act 18A, section 18A Industries (Development and Regulation) Act, section 18A of the Industries (Development and Regulation) Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 18A of the Industries (Development and Regulation) Act, and has it changed?

Its own text turns on section 15 (Power to cause investigation to be made into scheduled industries or industrial undertakings), section 16 (Powers of Central Government on completion of investigation under section 15), so none of them can safely be read on its own. 11 other provisions in this corpus refer back to it.

When was Section 18A of the Industries (Development and Regulation) Act enacted?

Section 18A of the Industries (Development and Regulation) Act, cited as Industries (Development and Regulation) Act 18A, was enacted on 31 Oct 1951 as Act 65 of 1951. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 20 Oct 2026. This page is not a substitute for legal advice.