The Assam Sillimanite Limited (Acquisition and Transfer of Refractory Plant) Act, 1976 was enacted by the Parliament on February 11, 1976 for the purpose of acquiring and reassigning the privilege, identity as well as interest that are vested in the Assam Sillimanite Limited with regard to the refractory industry and other issues connected with such acquisition. The fundamental need of the enactment was to increase the commodity supply of the industry to fulfill the important needs of the iron as well as steel plant. In order to achieve this objective a license was issued to establish a refractory industry by the Assam Sillimanite Limited. The said authority was granted as per the provisions of the Industries (Development and Regulation) Act, 1951.
As per the license that was issued, the Assam Sillimanite Limited conducted trade of equipments from outside India and started the creation of the preliminary works of the refractory industry. But, the assignment could not be completed due to financial instability along with various impediments and as a result the factory was closed down. The industry under the Assam Sillimanite Limited could create unique refractories consisting of alumina refractories of high quality which are essential for the iron and steel plant. The import of these refractories can be diminished by such production. In order to function the refractory industry under the control of the Assam Sillimanite Limited as quickly as possible, the organization was transferred to the Central Government for a short term according to the provisions of the Industries (Development and Regulation) Act, 1951. For fulfilling the fundamental purpose of increasing the production and sale of refractories of the iron and steel plant, it was essential to acquire the identity, privilege and interest with respect to the refractory industry under the authority of the Assam Sillimanite Limited.
As per the provisions of the Act, from the date of commencement of the Act the refractory industry shall be reassigned to the Central Government. Thereafter, the control of the company with respect to the refractory industry shall be entirely vested with the Government of India. The Central Government is also empowered under the Act to make direction that the refractory industry shall be reassigned to the Government Company. This can be done only with the sanction of the Government Company. In this connection, the Government Company has to conform to the terms and stipulation put forward by the Government of India. The plant shall be transferred to the Company from the date as the Central Government may prescribe. When the plant is transferred, the control and authority of the plant shall be vested with the Government Company. The Company shall also be liable to pay off the debts of the refractory industry. With regard to the supervision and organization of the refractory industry, the Government Company is under the obligation to perform as per the direction issued by the Government of India.
The Act imposes duty on the person who holds control over the refractory industry to hand over the relevant documents, equipments, apparatus and the assets to the Central Government or the body to which the plant is transferred. The significant accounts book, credentials, records and other documents connected with the plant shall be given to the Central Government or the body to which the plant is being reassigned. The possession of the industry shall be taken by the Central Government by taking necessary steps in this regard. The liabilities of the plant prior to the commencement of the Act shall be enforced against the Company and not against the Central Government. The management and organization of the industry shall be vested with the Central Government. If the industry is transferred to the Government Company or other organization of persons, the management of the Company shall be vested with such Company or the organization. The Central Government is empowered under the Act to formulate rules for the effectual implementation of the Act.