 t~ the sugar undertakings (tm-dg dver of t1anagel'1ent) - bill, "7~  , t l-" bel as introduced in ipk sabha 71 page 11, lines 32 and 33,-for' iiordi ance" re ad y "ordinance" 2 page 13, line 26,-for "requirements" k~ iirequirement" 3 page 13, line 2~;-after "\,,)rking capit':il" insert-"in terms of sub-clause (2) of clause 8 of the bill" "- new delhi; november ~4, 1 '78 agrahayana 3, 1900 (saka)  bill no 162 of 1978 - the ,··sugar undertakings (taking over of management) bill, 1978 abill to prq1)i,de lor the temporary taking over, in the public interest of the managtment of certain sugar undertakings in certain circumstances w1fd1&a8 for mairtaining the continuity of production of ~ar, for ~&'¥oididl uddue hargship to cane producing farmers and to b~t subaerve taeinterast& of all sections 'of the people, it is expedient in the public interest to provide for the taking over for a limited period the 5 management of every sugar undertaking which fails or ceases to manufacture sugar or which fails to pay promptly amounts due for the cane acquired for the purposes of the undertaking; be it enacted by parliament in the twenty-ninth year of the republic of india as follqws:- chapter i to preliminary :1 (1) this act may be call-ed the sugar undertakings of management) act, 1978  (~) it extenqs to the whole of india    (taking over short title, extent and commencement is"') it llhall be deemed to have come into force on the ~h day ot n()v'ember,' 1978 2 in this act, unless the context otherwise requires,-(a) "appointed day", in relation to any augar year, meidi lucia day in the year as the central government may, by nowlcatloll, specify having regard to the agro-climatic conditions prevallidg or likely to prevail, the quantity of cane available or likely to be avalla-5 ble for crushing and other relevant factors: provided that for the sugar year 1978-79, the appointed day shall be the 15th day of november, 1978; (b) "cane" means sugarcane; (c) "date of vesting", in l'elation to a sugar undertaking, meana jo the date on whieh the management of the undertaking vests m the central government under s!!ction 3; (d) "notification" means a notification published in the oftlcial gazette; (8) "prescribed" means prescribed by rules made under this j; act; i (f) "sugar undertaking" means an undertakinl engaaed in the manufacture or production of sugar by means ot vacuum pans and with the aid of mechanical power and "notified sugar undertakidg" means a sugar undertaking in respect of whic:h a notification hu 20 been issued under section 3; (g) "sugar year" means the period of twelve months commeneing on the 1st day of october and ending with the 30th day of september next following; (h) words and expressions used but not deftned in this act 15 and defined in the industries (development and regulation) act, 1951 shall have the meanings respectively assigned to tbem in that 85 of mil act and for this purpose a sugar undertaking shall be deemed to be an industrial undertaking within the meaning at that act; (i) words and expressions used but not deftnecl in tlua act or 30 in the industries (development and regulation) act, 1861 but &:i of 1811 defined ill the companies act, 1956 shall have the mean reepec-1 01 11a tively assigned to them in the companies act, 1956  chapter ii taking ovbr of managementl,s 3 (1) where the central government is satisfted-(a) that any sugar undertaking has in any sugar year failed to commence the manufacture of sugar on or before the appointed day in respect of that year, or having started the manufacture of aupr on or defore that day ceased to manufacture sugar before the expiry 40 of the average period of manufacture of sugar in relation to that undertaking; or vestina of m&nqement of a sup!" uaderteldn, in ceab'al governm6'nt (b) that on any date in any sugar year any sugar undertaking has, in relation to the cane purchased qefore that ~ta for the purposes of the undertaking, arrears of cane dues to the extent ot more 45   than ten per cent of the total price of the cane purchased for the purposes of the undertaking during the immediately preceding sugar year; and , (c) that in either case the effective functioning of the undertaking is necessary for the purposes of this act, the central government may issue a notice in such form and in aach manner as may be prescribed to the owner or the manager of such sugar undertaking calling upon such owner or manager to report in writing within such time, not being less than five days, as may be specified in 10 the notice, the circumstances under which such undertaking has so failed to commence or ceased to manufacture sugar or, as the case may be, clear the said arrears of cane dues and to show cause as to why the management of such undertaking should not be taken over by the central government under this act 15 (2) as soon as may be, after the receipt of t1>le report under subsection (1) from the sugar undertaking, or where the sugar undertaking hal failed to make such report within the time specified in the notice to that undertaking under sub-section (1), after the expiry of such time, the central government may make such further inquiry (if any) zo 8s it may deem fit, and-(a) if the central government is satisfied that having regard to all the circumstances of the case and the purposes of this aet that it would be expedient to give further time to the undertaking to enable it to commence or resume production of sugar or, 81 the case may be, clear the arrears of cane dues, it may, by order in writing, specify the date on or before which and the manner 1n which such undertaking shall commence or resume production of ugar or, as the case may be, clear the said arrears of cane dues; or (b) if th~ central government is not satisfied as provided in clause (a), declare by notification that the management of such undertaking shall vest in the central government on and from iuch date as may be s~ified in such notification (3) if a sugar undertaking has failed to comply with an order made under clause (a) of sub-section (2), or having commenced or resumed 3s the production of sugar on or before the date specified in such order, eeased to manufacture sugar before the expiry of the average period of mauufacture of bugar in relatfoon to that undertaking, and the central government is satisfied that it is necessary so to do for the purposes of this act, it may, by notification, declare that the management ot such 40 sugar undertaking shall vest in the central government on and from bueh date as may be specified in such notification (4) any failure on the part of the owner or manager of the sugar undertaking to utilise the undertaking for the manufacture ot sugar durlng any period shall not be taken into account for the purpose of 45 issuing a notiftcation in respect of that undertaking under clause (b') of sub-section (2) or sub-section (3) where such failure is attributable to any circumstances (other than financial dift\culties) beyond his control ' ,- '  -i~ (5) every  notification issued under sub-section (2) or sub-sectfon so (3) for veatinl tb manapment of a bular \idartking in the central government shall be in force for such period not exceeding three years from the date of vesting as may be specified 1n the notifteatlon but if the period so spetified is less than three years from the date f1f vesting and the central government is of opinion that it is expedient in the public interest that the management of the sugar undertaking should 5 continue to vest in the central government after the expiry 'of the period so specified, it may, from time to time, issue, by notift~ijon, direotions for such continuance for such further period as may be :':ptcifled in the directions: provided that the total period for which the management of the 10 undertaking may remain vested in the central government hall : in no c8s~ exceed three years from the date of ves~g (6) for the purposes of this section-(a) "cane dues", in :relation to any cane purchased by a sugar undertaking, means the price payable in accordance wita ,the 15 agreement (whether express or implied) or arrangement ielaung to such purchase and where there is no such agreement or u'l'giement, the price as determined in accordance with the law applicable to such purchase; (b) any cane dues being the price payable for any cane acquired 20 for the purposes of a sugar undertaking shall not be deemecito be in arrears at any time before the expiry of fou~ days from the date of delivery of such cane to the undertaking;  (c) the average ~eriod of manufacture of sugar ~ relation 'to any sugar undertaking with respect to any sugar year (hereafter ~5 in this clause referred to as the current sugar year) shall be calculated by dividing the htal number of calendar days during which the undertaking manufactured sugar during the period of three sugar years immediately preceding the current sugar year, by the" number of sugar years in which the undertaking manufactured sugar 30 during the said period of three years auets, etc, of notifted auaar undertakin, 4 (1) the notified sugar undertaking shall be d~ed to incl~de all hsets, rights, powers, authorities and privileges, in relation to the ~id undertaking and all property movable and immovable, including laqds, buildings, workshops, stores, instruments, machtn~, automobiles and 35 other vehicles and goods under production or in transit, cash balances, reserve lunds, investments and all other rights and interests in, or arising out of, such property as were, immediately before the date of !v~ng, in the ownership, possession, power or control of that undertaking, whether within 'or outside india, and all books of account, r~sters 40 and all other documents of whatever nature relating thereto ' (2) any contract, whether express or implied, or other arrangehlent (whether under any statute or otherwise) in so far as it rejates to the management of the business and affairs 'of the notified suga~ und~r taking, and in force immediately before the date of vesting, or blly 45 order made by any court in so far as it relates to the management of the business and affairs of that undertaking and in force immediately before, the said date, shall be deemed to have terminated on that ute, (8) all persons in whom the management df the business and affairs of the notified sugar undertaking vests immediately before the date of vesting shall, as from that date, cease to be so vested (4) notwithstanding any judgment, decree or ()rder of any court, tri-5 bunal or other authority or anything contained in any law (other than, thf act) for the time being in force, every receiver, otbcial liquidator or other person in whose possession or custody or under whose control the notified sugar undertaking or any part thereof may be immediately before the date of vesting, shall, on that date, deliver the possession of the t o aid undertaking or such part thereof, as the case may be, to the custodian, appointed under section 5, or, where no custodian has been appointe4, to such other person as the central government may direct (5) the central government may take, or cause to be taken, all neeessary steps for se~uring the possession of the notified sugar 15 unditrtaltfn'g 5 (1) the central government may, as soon as it is convenient admi-appoint_ nistrauvely so to do, appoint an individual or a body of individuals or a ment ot gwemm&nt company as the custodian of a notifled sugar undertaking custodian or a group of notified sugar undertakings for the purpose of taking over 10 the management of such undertaking or undertakings and the custodian so appointed shall carry on the management of such undertaking or undertakings for and on behalf of the central government (2) the central government may also appoint an individual or a gover  ent company as the custodian-general for exercising supervi-15 ioft and control over all the notified sugar undertakings, and on such appointment, every custodian appointed under sub-section (1) shall act utter tht guidanee, control and supervision of the custodian-general (3) on the appointment of a custodian under sub-section (1), the charge of management of the notified sugar undertaking or group of noti-30 fied sugar undertakings, as the case may be, shall vest in such custodian and all persons in charge of ,the management of such undertaking or undertakings immediately before such appointment shall cease to be in charge of such management and shau be bound to deliver to the custodian all assets, books of account, registers or other documents in their 35 custod~ relating to such undertaking or group of undertakings (4) the central government may issue such directions (including directions as to initiating, defending or continuing any legal proceedings before any court, tribunal or other authority) to the custodian or custodian-general as to his or its powers and duties as the central g~vern-40 ment deems desirable and the custodian-general or if there is no eustodjan-general the custodian may apply to the cf>ntrai government at any time for instructions as to the manner in which the custodian or the custodian-general shall conduct the management of the notified sugar undertaking or in relation to any matter arising in the course of such 4~ management (5) any person, wh:>, on the appointed day, has in his possession or under his control any books papers or 'other documents relating to the notified sugar undert~king shall notwithstanding nnything contained in any other law for the time being in force be liable to account for the 50 books, papers and other documents, to the custodian and shall deliver them up to the custodian or to such other person as may be authorised by the central government or the custodian in this behalf (6) every person in charge of the management of the notifled sugar undertaking, immediately before the date of vesting, shall, within ten days from that date or within such further period as the central government may allow in this behalf, furnish to the custodian a complete inventory of all the properties and assets (including particulars of book debts, investments and belongings) forming part of the undertaking immediately before the date of vesting and of all liabilities and obligations of the undertaking subsisting immediately before that date and j (!) also of all agreements entered into by the owner or manager of the undertaking, in relation to the said undertaking, and in force immediately before that date (7) the custodian-general shall hold office during the pleasure of the central government and shalt' receive such remuneration 88 may be bed is by the central government (8) every custodian or where a body of individuals has been appointed as the custodian, each such individual shall hold oftlce during the pleasure of the central government and shall receive from the funds of the sugar undertaking or group of sugar undertakings concerned, such ~o remuneration as may be fixed by the central government explananon-'i'he remuneration payable to the custodian ot two or more notified undertakings shall be allocated among the funds ot the undertakings in such proportion as the central government may, havjng regard to the quantum of work in respect of such undertaldnp and 25 other relev~mt circumstances, by order determine payment of amount 6 (1) the owner of every notifted sugar undertaking shall be jiven lty the central government an amount in cash for vesting in it ujlder section 3 the management of such undertaking (2) for every month during which the management of the notified 30 sugar undertaldng remains vested in the central government under til  ad the amount, referred to in suh-sedion (1), shall be,-(a) where the daily cane crushing capacity of the undertaking is five hundred tonnes or less, an pmount of five hundred rupees; and (b) where the daily cane ctushing capacity of the underiajdng 35 is more than flve hundred tonnes, an amount computed at the rate of one rupee for each tonne of such capacity or an amount of one thousand two hundred and ftfty rupee!;, whichever iii 1m!'!  chapter itirel,rtt to 5irga~ ljndjl:rtaktnrs ann cant pmducing p'armns 40 ~ 7 (1) the central government may, if it is satisfied, in relation to a notifted sugar undertaking that it is necessary so to do in the interests of the general public with a view to preventing the fall in the volume of production of the sugar innustry, it may, by notification, declare that-sower of central government to makecertain declarations (a) all or any of the enactment~ specified in the schedule hall 4s not apply or sha1j "pply wlth :quch :ldaptatfons, whether by way of mod1!cation, addition or omission (which does not, however, atfect the policy of the said ~actments) to such suaar undertaking, as may be, apeelfted in such notification, or 5 10 (b) the operation of all or any of the contracts, assurances of property, agreements, settlements, awards, standing orders or other instruments in force (to which such sugar undertaking or the person owning such undertaking is a party or which may be applicable to such sugar undertaking or person) immediately before the date of issue of the notification shall remain suspended or that all or any of the rights, privileges, obligations and liabilities accruing or arising thereunder before the said date, shall remain suspended or shall be enforceable with such adaptations and in such manner as may be specified in the notification (2) the notification made under sub-section (1) in relation to a notifi-15 ed sugar undertaking shall remain in force, in the first instance, for such period not exceeding one year as may be specified in the notification but the duration of such notification may be extended from time to time by ~ further notification by a period not exceeding one year at a time (3) any notification made under sub-section (1) shall have effect not-20 withstanding anything to the contrary contained in any other law, agreement, or instrument or any decree or order of a court, tribunal, oftlcer or other authority or of any submission, settlement or standing order i (4) any remedy for the enforcement of any right, privilege, obligation 25 or liability referred to in clause (b) of sub-section (1) and suspended or mod1fted by a notification made under that sub-section shall, in accordance with the terms of the notification, remain suspended or modified and all proceedings relating thereto pending before any court, tribunal, officer or other authority shall accordingly remain stayed or be continued sub-30 jed to such adaptations, so, however, that on the notification ceasing to have effect-(a) any right, privilege, obligation or liability so remaining suspended or modified shall become revived and enforceable as if the notification had never been made; 35 (b) any proceeding so remaining stayed shall be proceeded with subject to the provisions of any law which may then be in force, ~om the stage which had been reached when the proceedings become stayed (5) in comp~ting the period of limitation for the enforcement of any 40 right, privilege, obligation or liability referred to in clause (b) of subsection (1), the period during which it or the remedy for the enforcement thereof remained suspended shall be excluded 8 (1) the central government may issue such directions as it deems asaisfit to the custodian-general and the custodians to facilitate the speedy tan~~ as clearance of arrears of cane dues so as to avoid undue hardship to cane not , su,ar lftlproducing farmers dertaking, , (2) without prejudice to the provisions of bub-section (1), the ~~~!:: of  central goverlullent may render such assistance in such manner as it may cane dues deem fit to any notified sugar undertaking to enable the undertakinf to lear the whole or any part of its arrears of cane dues so as to avoid undue hardship to cane producing farmers explanation-for the purposes of this section, the expr,mon "arrears of cane dues" shall be construed in accordance with the pro-5 visions of clauses (a) and (b) of sub-section (6) of section 3  chapter iv miscellanilous9 (1) no proceeding for the winding up of a notified sugar uj;idertak· ing, being a company, shall lie in any court or be continued whether by 10 or under the supervision of any court or voluntarily, except with the consent of the central government  notified lugar undertaking, if a company, not to be wound up (2) in computing the period of limitation prescribed by any law for the time being in force for any application which may be made in the course of winding up of any such notified sugar undertaking in respect is of any matter arising out of any transaction in relation to such undertaking, the time during whieh the making of such application was barred by this act shall be excluded contracts, etc in bad faith may be cancelled or varied 10 (1) if the central government is satisfied, after such inquiry as it may think fit, that any contract or agreement entered into by the 20 owner or manager of a notified sugaj' undertaking, in relation to the said undertaking, at any time within twelve months immediately ptececung the date of vesting, has been entered into in bad faith or is detrimental to the interests of the undertaking, it may make an order cancelling or varying (either unconditionally 'or subject to such conditions as it may 25 think fit to impose) the contract or agreement and thereafter the contract or agreement shall have effect accordingly: provided that no contract or agreement shall be cancelled or varied l"xcept after giving to the parties to the contract or agreement a reason· able opportunity of being heard 30 (2) any person aggrieved by an order made under sub-section (1) may mak  ' an application to the principal court of civil jurisdiction within the local limits of whose jurisdiction the regiltered office ot the sl1gar undertaking is situated for the variation or reversal of such order and, thereupon such court may confirm, vary or reverse such order 35 power to terminate the contract of employment 11 if the custodian or custodianmgeneral is of opinion that any coatract of employment entered into by any owner or member ofa notified sugar undettaking 'or its agent in relation to the said unde,· taking, at any time before the date of vesting, is unduly onerous, he may, by giving to the employee one month's notice in writin~ or the 40 salary or wages for one month in lieu thereot', terminate such contract, of employment 12 (1) pending the taking over by a custodian, appointed udder section 5, of the physical possession of any notified sugar un~t the per8qil in charge of the management of such undertaldji' fm1be 4s diately before the date of vettin, shall,\ o~ and from that date, be in ma~je­mentol not~ lucid' un· to ' i dertaking pending taking over phy_ sical possession by the custodian charge of the management of such undertaking for and on behalf of the central ?overnment; and the management of such undertaking shall be carried on by such person subject to the provisions contained in sub-section (2) and such directions, if any, as the central government s may give to him, and no other person, including the said undertaking shall, so long as such management continues, exercise any powers of management in relation to the said undertaking (2) no pers::m in charge, under sub-section (1), of a notified sugar undertaking shall, without the previous approval of the custodian-10 general appoint~ under section 5,-(i) incur any expenditure from the assets appertainfng to the undertaking otherwise than for the purpose of making routine payments of salaries or commissions to employees, agents or for the purpose of meeting the routine day to day expenditure; is (ii) transfer or otherwise dispose of any such assets or create any charge, hypothecation, lien or other incumbrance thereon; (iii) invest in any manner any moneys forming part of such assets; (iv) acquire any immovable property out of the moneys form-20 ing part of such assets; (v) enter into any contract of service or agency, whether expressly or by implication, for purposes connected wholly or partly with the undertaking or vary the terms and conditions of any contract relating to any such transaction subsisting on the date of 2s vesting (3) the approval of the custodian-general may be given either generally in relation to certain classes of transactions relating to the notified sugar undertaking or specially in relation to any of its transactions i 30 13 (1) no suit, prosecution or other legal proceeding shall lie against the government, the custodiangeneral or any other offic·er of government or any custodian in respect of anything which is in good faith done or intended to be done under this act protection of actian taken in good faith (2) no suit or other legal proceeding shall lie against the govern-3s ment the custodian-general or any other officer of government or any cusu;dian for any damage caused, or likely to be caused, by anything which is in good faith done or intended to be done under this act delegation of powers 14 (1) the central government may, by notification, direct that all or any of the powers exercisable by it under this act, other tha~ those 40 under this section or section 8 or section 20 may also be exercised by any person or persons as may be specified in the notification (2) whenever any delegation of power is made under sub-section (1) the person to whom such power has been delegated shall act under the i direction, control and supervision of the central government 15 e,very debt aflsing out of any loan advanced to a notified sugar undertaking by the central government ora state government for carrying on the management of such undertaking-- (a) shall have priority over all other debts, whether secured or unsecured, incurred before the management of such undertaking s was taken over under this act; debts in curred for the pur_ poses of notified sugar un dertakings to have priority (b) shall be a preferential debt within the meaning of section 530 of the companies act, 1956, 1 of 1956 and such debts shall rank equally among themselves and be paid in full out of the assets of the undertaking unless such assets are insufficient 10 10 meet them, in which case they shall abate in equal proportions penalties 16 if any person-(a) fails b deliver to the custodian any assets, books of account, registers or any other documents in his custody relating to any notified sugar undertaking, or is (b) retains any property of such undertaking or removes or destroys it, or (c) fails to comply with the provisions of section 5, or (d) fails to comply with any direction made under this act, he shall be punishable with imprisonment for a term which may extend 20 to seven years, and shall also be liable to fine offences by companies 17 (1) where an offence under this act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed 25 to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all 30 due diligence to prevent the commission of such offence (2) notwithstanding anything contained in sub-section (1), where any offence under this act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any director, 3s manager, secretary or other officer of' the company, such director, manager, secretary or 'jther officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly exp14nation-for the purposes of this section,-(a) "company" means any body corporate and includes a firm or other association of individuals; and (b) "director", in relation to a firm, means a partner in the firm act not to apply to certain sugar un_ dertakings 1 of 1956 18 (1) the provisions of this act shall not apply to any sugar undertaking which is owned by or is under the management of the central government or a state government or a corporation established by or under an enactment (including an ordinance) or a government s company as defined in section 617 of the companies act, 1956 (2) for the purposes of sub-section (1), the management of a sugar undertaking by a receiver or an authorised controller appointed by the central government or a state government under any law for the time being in force shall also be deemed to be management of the undertak-10 ing by the central government or a state government, as the case may be act to have overriding effect 19 the provisions of this act shall have effect notwithstanding anything inconsistent therewith contained in any law (other than this act):>r any judgment, decree or order of any court, tribunal or other 15 authority or any instrument having effect by virtue of any law other than this act 20 the central government may, by notification, make rules to power to carry out the provisions of this act make rules laying of rules and certain notifications 21 every rule made by the central government under this act and 20 every notification made under section 7 'shall be laid, as soon as may be after it is made, before each house oj parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two 'or more successive sessions, and if, before the expiry of the session immediately following the session or the succes-25 sive sessions aforesaid, both h)uses agree in making any modification in the rule or notification or both houses agree that the rule or notification should n)t be made, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without 30 prejudice to th~ validity of anything previously done under that rule or notification 5 of 1978 22 (1) the sugar undertakings (taking over of management) ordiance, 1978', is hereby repealed repeal and saving (2) notwithslmding such repeal, anything done or any action taken 3s under the ordin:mc~ so repealed shall be deemed to have been done or taken under the c)rresponcling provisions of this a~t  the schedule '1: (see section 7)200t 1946 1 the indus~ 'ial employment (standing orders) act, 1946 \ ~ 14 of 1947 2 the indurt'ial disputes act, 1947 i t' i 11 of 1946 3 the minimum wages act, 19~ j '-  i  statement of objects and reasonssugar production during 1977-78 season had reached a record level of about 65 lakh tonnes taking into account the record sugar production and the high level of sugar stock in the system, the need to further maximise domestic consumption of sugar and other factors, the government had removed controls on prices, distribution, etc, of sugar from the 16th august, 1978 the open market prices of sugar throughout the country have come down and are ruling at reasonable levels there had, however, been a disquieting increase in the ari'ears due to sugarcane growers, despite the efforts of the government to liberalise the availability and terms of bank credit the arrears of cane price for 1977-78 sugar season, as at 'the beginning of the current 1978-79 season, that is, on the 1st october, 1978, amounted to over rs 53 crores there was also an apprehension that on one pretext or the other a considerable number of sugar undertakings might not commence production during the current 1978-79 season on time in the interests of the consuming public and sugarcane growers and to maintain production and availability of sugar, whit'h is an essential commodity, it became necessary to make provision for the taking over by the government of the management of the defaulting sugar undertakings far a specified period - in view of the urgency, and as parliament was not in session, the sugar undertakings (taking over of management) ordinance, 1978 (5 of 1978) was promulgated on the 9th november, 1978 to achieve the above objects the bill seeks to replace the provisions of the ordinance new delhi; the 19th novembet', 1978 b p singh  president's recommendation under article 117 of the constitution of india[copy of letter no 425-m (abi) /78-d, dated the 22nd november, 1978' from shri surjit singh bamala, minister of agriculture and irrigation to the secretary, lok sabha] the president, having been informed of the subject matter of the proposed bill recommends the' consideratioon of the bill under article 117 (3) of the constitution the bill, if enacted, would necessitate expenditure on account of payment to the personnel to be employed to administer the act and to exercise superintendence and control over the custodians, payment of amounts to the owners of sugar undertakings for vesting their management in the central government and for providing financial assistance to such undertakings to clear the arrears <)f sugarcane dues under' sub-clauses (2) and (7) of clause 5 of the bill, a custodian-general may be appointed he m 9y have to be r,rovided supporting staff and it may be necessary for him to set-up regional offices for smooth and efficient control of takeri-o\rer units tileir salaries and allowances as also other office expenditure would ei1tail an ~mnual ex:;-penditure of about rs 7 lakhs in the first year of operation of the legislation in the subsequent years, there may be a decrease or increase in the expenditure on this account and the same would depend upon, inter alia, the number of units the management whereof is for the time being vested in the central government although information about sugarcane dues of individual mills has been collected and a number of sugar undertakings has sugarcane dues in excess of 10 per cent of the price payable for the cane purchased during 1977-78, it is by no means an indication that the management of all such undertakings shall have to be taken over the reasons for such dues are to be adjudged objectively it is, therefore, not possible at this juncture to have a p,recise idea of the actual number of sugar undertakings whose management ma~ have to be taken over and therefore of the requirements of funds it is, however, estimated that the take-over of the management of a sugar undertaking will involve non-recurring expenditure by way of loan assistance of the order of rs 50-60 lakhs towards sugarcane dues and rs 30-35 lakhs by way of working capital and a recurring expenditure of rs 6,000 to 15,000 towards payment to the owner of the sugar undertaking in terms of clause 6 of the bill the payments under the said clause 6 will have to be made only for the period during which the management of the sugar undertaking remains vested in the central government the bill, if enacted, is not likely to involve any other recurring or naill-recurring expenditure  memorandum regarding delegated legislationclause 20 of the bill empowers the central government to make rules for carrying out the provisions of the proposed legislation clause 3 provides for the issue of a notice under certain circumstances to the owner or manager of a sugar undertaking the form in whit'h such notice may be :ssued may be prescribed by rules simil:rrly the marmer in which such notice will be served on such owner or manager may have to be prescribed by rules all these matters are of a procedural character moreover, the rules made under clause 20 will have to be laid before e:-ch house of parliament and they will be subject to the scrutiny of parliament the delegation of legislative power is, therefore, of a nonnal character  memorandum exptaining the modifications contained in the bill to replace the sugar undertakings (taking over of management) ordinance 1978apart from changes of a formal and drafting nature, sub-section (1) of section 10 of the ordinance has been modified to provide that the central government will have the ,option of cancelling or varying a contract or agreement entered into by the owner or manager of a notified sugar undertaking in relation to the said undertaking either on the ground that such contract or agreement has been entered into in bad faith or on the ground that such contract or agreement is detrimental to the interests of the undertaking a bill to provide for the temporary taking over, in the public interest, of the management 'of certain sugar undertakings in certain circumstances (shri bh4nu pratap singh, minister ly/ state in tne ministry  of agriculture and irrigation) 