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Section16E
The Tea Act, 1953

Power to take over tea undertaking or tea unit without investigation under certain circumstances

In force From 01 Apr 1956 Act 29 of 1953 As on 19 Oct 2026

Act 29 of 1953 Ministry Commerce and Industry Enacted 28 May 1953 In force 01 Apr 1956 Cited by 6 provisions

Section 16E of the Tea Act, 1953 deals with power to take over tea undertaking or tea unit without investigation under certain circumstances. Without prejudice to any other provision of this Act if, from the documentary or other evidence in its possession, the Central Government is satisfied, in relation to a tea undertaking or tea unit, that-- (a) the persons in charge of such tea undertaking or tea unit have, by reckless investment or [ The Act came into force on 01 Apr 1956.

1[16E. Power to take over tea undertaking or tea unit without investigation under certain circumstances.--(1) Without prejudice to any other provision of this Act if, from the documentary or other evidence in its possession, the Central Government is satisfied, in relation to a tea undertaking or tea unit, that--

(a) the persons in charge of such tea undertaking or tea unit have, by reckless investment or 2[by] creation of incumbrances on the assets of the tea undertaking or tea unit, or by diversion of funds, brought about a situation which is likely to affect the production of tea manufactured or produced by the tea undertaking or tea unit, and that immediate action is necessary to prevent such a situation; or

(b) it has been closed for a period of not less than three months (whether by reason of the voluntary winding up of the company owning the tea undertaking or tea unit or for any other reason) and such closure is prejudicial to the concerned tea undertaking or tea, unit and that the financial condition of the company owning the tea undertaking or tea unit and the plant and machinery of such tea undertaking or tea unit are such that it is possible to restart the tea undertaking or tea unit and such restarting is necessary in the interests of the general public,

it 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 or to exercise in respect of the whole or any part of the tea undertaking or tea unit such functions of control as may be specified in the order.

3[Explanation.--For the purpose of this sub-section, "incumbrances" includes any liability which may be recovered or satisfied from the assets of the tea undertaking or, as the case may be, tea unit or the person owning the tea undertaking or tea unit.]

(2) On the issue of a notified order under sub-section (1) in respect of a tea undertaking or tea unit,--

(a) the provisions of sub-sections (2), (3) and (4) of section 16D, and the provisions of section 16G, shall apply to a notified order made under sub-section (1) as they apply to a notified order made under sub-section (1) of section 16D; and

(b) the provisions of sub-sections (3) and (4) of section 18AA of the Industries (Development and Regulation) Act, 1951 (65 of 1951), shall apply to the tea undertaking or tea unit, as the case may be, to the same extent as they apply to an industrial undertaking.]

Section 16E, The Tea Act, 1953 (Act 29 of 1953).

Cross-references

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

This section refers to

  1. s. 16D Power of Central Government to assume management or control of tea undertaking or tea unit in certain cases
  2. s. 16G Application of Act 1 of 1956

Referred to by 6

  1. s. 16F Contracts in bad faith, etc., may be cancelled or varied
  2. s. 16H Power of Central Government to cancel notified order under section 16D or 16E
  3. s. 16J Power of Central Government to make certain declarations in relation to tea undertakings or tea units
  4. s. 16K Power of Central Government to call for report on the affairs and working of a managed tea undertaking or tea unit
  5. s. 16LL Debts incurred and investments made by the authorised person to have priority
  6. s. 16M Bar of suits and other proceedings in relation to the tea undertakings or tea units

Judgments citing this section

These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.

  1. Supreme Court of India 04 Oct 2019 SCIN010222332019

    … Therefore, in effect, the appellant herein has been continued to be in management and control of the tea estates, despite the notification under Section 16E dated 28.01.2016. At this stage, it is required to be noted that notification under Section 16E of the Tea Act was issued by the Central Government and the Central Government authorised the Tea Board to take steps to take over the management and control of the seven tea estates, having satisfied that the said seven tea gardens were being managed by the appellant in a manner highly detrimental to the tea …

    Read this order on eCourtsIndia

Questions about Section 16E

What does Section 16E of the Tea Act deal with?

Section 16E of the Tea Act is headed "Power to take over tea undertaking or tea unit without investigation under certain circumstances". [16E. Power to take over tea undertaking or tea unit without investigation under certain circumstances.--(1) Without prejudice to any other provision of this Act if, from the documentary or other evidence in its possession, the Central Government is satisfied, in relation to a tea undertaking or tea

How do I find court cases under Section 16E of the Tea 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: Tea Act 1953 16E, section 16E Tea Act 1953, section 16E of the Tea 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 16E of the Tea Act, and has it changed?

Its own text turns on section 16D (Power of Central Government to assume management or control of tea undertaking or tea unit in certain cases), section 16G (Application of Act 1 of 1956), so none of them can safely be read on its own. 6 other provisions in this corpus refer back to it.

When did Section 16E of the Tea Act come into force?

Section 16E of the Tea Act, cited as Tea Act 1953 16E, came into force on 01 Apr 1956, having been enacted on 28 May 1953. 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 19 Oct 2026. This page is not a substitute for legal advice.