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The Essential Defence Services Bill, 2021

SECTION Section 1

Untitled Section

1
THE ESSENTIAL DEFENCE SERVICES BILL, 2021
A
BILL
to provide for the maintenance of essential defence services so as to secure the security
of nation and the life and property of public at large and for matters connected
therewith or incidental thereto.
BE it enacted by Parliament in the Seventy-second Y ear of the Republic of India as
follows:—
SECTION Section 10

Untitled Section

9.(1) If the Central Government is satisfied that in the—
(a)public interest; or
(b)interest of the sovereignty and integrity of India; or
(c)security of any State; or
Removal of
persons.
Dismissal of
employees
participating
in illegal
strikes.
Penalty for
illegal strikes.
Penalty for
instigation,
etc.
Penalty for
giving
financial aid
to illegal
strikes.
Power to
prohibit lock-
outs in any
industrial
establishment or
unit engaged in
essential defence
services.
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(d)public order; or
(e)decency; or
(f)morality,
it is necessary or expedient so to do, it may by general or special order, prohibit lock-outs
in the industrial establishments or units engaged in the essential defence services.
(2)An order made under sub-section ( 1) shall be published in such manner as the
Central Government may deem fit to bring it to the notice of the persons affected by such
order.
(3)An order made under sub-section ( 1) shall be in force for six months, but the
Central Government may, by a like order extend it for any period not exceeding six months,
if it is satisfied that in the public interest it is necessary so to do.
(4)Upon the issue of an order under sub-section (1),—
(a)no employer engaged in the essential defence services shall commence
any lock-out; and
(b)any lock-out declared or commenced, whether before or after the issue of
such order, by any employer engaged in the essential defence services shall be
illegal.
(5)Any employer of an industrial establishment or unit engaged in the essential
defence services, who commences, continues, or otherwise acts in furtherance of a
lock-out which is illegal under this section, shall be punishable with imprisonment
for a term which may extend to one year or with fine which may extend to ten thousand
rupees, or with both.
SECTION Section 11

Untitled Section

10.(1) If the Central Government is satisfied that in the—
(a)public interest; or
(b)interest of the sovereignty and integrity of India; or
(c)security of any State; or
(d)public order; or
(e)decency; or
(f)morality,
it is necessary or expedient so to do, it may, by general or special order, prohibit lay-off,
on any ground other than shortage of power or natural calamity, of any workman (other
than a badli workman or a casual workman) whose name is borne on the muster rolls of
any industrial establishment or unit engaged in the essential defence services.
(2)An order made under sub-section (1) shall be published in such manner as the
Central Government may deem fit to bring it to the notice of the persons affected by the
order.
(3)An order made under sub-section ( 1) shall be in force for six months, but the
Central Government may, by a like order, extend it for any period not exceeding six months,
if it is satisfied that in the public interest it is necessary or expedient so to do.
(4)Upon the issue of an order under sub-section (1),—
(a)no employer in relation to an establishment to which such order applies
shall lay-off or continue the lay-off any workman (other than a badli workman or a
casual workman) whose name is borne on the muster rolls of any industrial
establishment or unit engaged in the essential defence services, unless such lay-off is
Power to
prohibit lay-
off in any
industrial
establishment
or unit
engaged in
essential
defence
services.
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due to shortage of power or natural calamity, and any laying-off or continuation
of laying-off shall, unless such laying-off or continuation of laying-off is due to
shortage of power or natural calamity, be illegal;
(b)a workman whose laying-off is illegal under clause (a) shall be entitled to
all the benefits under any law for the time being in force as if he had not been laid-off.
(5)Any employer, of an industrial establishment or unit engaged in the essential
defence services, who lays-off or continues the laying-off of any workman shall, if such
laying-off or continuation of laying-off is illegal under this section, be punishable with
imprisonment for a term which may extend to one year or with fine which may extend to ten
thousand rupees, or with both.
SECTION Section 12

Untitled Section

11.Notwithstanding anything contained in the Code of Criminal Procedure, 1973, any
police officer may arrest without warrant any person who is reasonably suspected to have
committed any offence under this Act.
SECTION Section 13

Untitled Section

12.Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all
offences under this Act shall be tried in a summary way by any Metropolitan Magistrate or
any Judicial Magistrate of the first class, specially empowered in this behalf by the State
Government and the provisions of sections 262 to 265 (inclusive) of the said Code shall, as
far as may be, apply to such trial:
Provided that in a case of conviction for any offence in a summary trial under this
section, it shall be lawful for such Magistrate to pass a sentence of imprisonment for any
term for which such offence is punishable under this Act.
SECTION Section 14

Untitled Section

13.Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all
offences punishable under this Act shall be cognizable and non-bailable.
SECTION Section 15

Untitled Section

14.Any reference in this Act to any law which is not in force in any area and to any
authority under such law shall, in relation to that area, be construed as a reference to the
corresponding law in force in that area and to the corresponding authority under such
corresponding law.
SECTION Section 16

Untitled Section

15.No suit, prosecution or other legal proceedings shall lie against the Central
Government or any officer for anything which is in good faith done or intended to be done
under this Act.
SECTION Section 17

Untitled Section

16.The provisions of this Act and of any order issued thereunder shall have effect
notwithstanding anything inconsistent therewith contained in the Industrial Disputes
Act, 1947, or in any other law for the time being in force.
SECTION Section 18

Untitled Section

17.In the Industrial Disputes Act, 1947, in section 2, in clause (n), in sub-clause (ia),
for the words "or dock", the words "or dock or any industrial establishment or unit engaged
in essential defence services" shall be substituted.
SECTION Section 19

Untitled Section

18.Every notification issued under this Act shall be laid, as soon as may be after it is
made or issued, before each House of 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 successive
sessions aforesaid, both Houses agree in making any modification in such notification or
both Houses agree that the notification should not be issued, the 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 prejudice to the validity of anything
previously done under that notification.
SECTION Section 2

Untitled Section

1.(1) This Act may be called the Essential Defence Services Act, 2021.
(2)It extends to the whole of India.
(3)It shall be deemed to have come into force on the 30th day of June, 2021.
Short title,
extent and
commencement.
Bill No. 101 of 2021
AS INTRODUCED IN LOK SABHA
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SECTION Section 20

Untitled Section

19.(1) The Essential Defence Services Ordinance, 2021is hereby repealed.
(2)Notwithstanding such repeal, anything done or any action taken under the provisions
of the said Ordinance, shall be deemed to have been done or taken under the corresponding
provisions of this Act.
2 of 1974. Power to
arrest without
warrant.
2 of 1974. Offences to be
tried
summarily.
2 of 1974. Cognizance of
offences.
Reference of
other laws in
certain areas.
14 of 1947.
Protection of
action taken
in good faith.
Act to
override other
laws.
Amendment
of Act 14 of
SECTION Section 21

Untitled Section

1947.
Laying of
notifications
before
Parliament.
Ord.7 of
SECTION Section 22

Untitled Section

2021.
Repeal and
savings.
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STATEMENT OF OBJECTS AND REASONS
Indian Ordnance Factories is the oldest and largest industrial setup which
functions under the Department of Defence Production of the Ministry of Defence. The
ordnance factories form an integrated base for indigenous production of defence
hardware and equipment, with the primary objective of self reliance in equipping the
armed forces with state of the art battlefield equipments. In order to improve autonomy,
accountability and efficiency in ordnance supplies, the Government decided to convert
the Ordnance Factory Board into one or more one hundred per cent. Government owned
corporate entity or entities to be registered under the provisions of the Companies Act,
SECTION Section 24

Untitled Section

2.Against the said decision, the recognised federations of the employees gave a
notice for an indefinite strike. The conciliation proceedings initiated by the Government
at the level of Chief Labour Commissioner failed in the meeting held on the 15th June,
SECTION Section 25

Untitled Section

2021.On the 16th June, 2021, the Government decided to convert the Ordnance Factory
Board into seven Defence Public Sector Undertakings.
SECTION Section 26

Untitled Section

3.In spite of the Government's assurance to take care of the conditions of service
of the employees of the Ordnance Factory Board, the recognised federations of the
employees have reiterated their intention to go on indefinite strike from 26th July, 2021.
SECTION Section 27

Untitled Section

4.Since, it is essential that an uninterrupted supply of ordnance items to the
armed forces be maintained for the defence preparedness of the country and the ordnance
factories continue to function without any disruptions, especially in view of the
prevailing situation on the northern front of the country, it was felt necessary that the
Government should have power to meet the emergency created by such attempts and
ensure the maintenance of essential defence services in all establishments connected
with defence, in public interest or interest of the sovereignty and integrity of India or
security of any State or decency or morality.
SECTION Section 28

Untitled Section

5.As Parliament was not in session and urgent legislation was required to be
made, the President promulgated the Essential Defence Services Ordinance, 2021 on
the 30th June, 2021, which, inter alia , provides for the following, namely:—
(a)to define the expressions "essential defence services" and "strike";
(b)to empower the Central Government to prohibit strike in essential defence
services;
(c)to provide for disciplinary action, including dismissal, against employees
participating in strike;
(d)to provide for penalties for illegal strikes, instigation thereof and
providing for financial aid to such illegal strikes;
(e)confer power on any police officer to arrest without warrant any person
who is reasonably suspected to have committed any offence under the proposed
legislation.
SECTION Section 29

Untitled Section

6.The Essential Defence Services Bill, 2021 seeks to replace the aforesaid
Ordinance.
N
EW DELHI; RAJNATH SINGH.
The 13th July, 2021.
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MEMORANDUM REGARDING DELEGATED LEGISLATION
Sub-clause (1) of clause 2 of the Bill empowers the Central Government to declare,
by notification in the Official Gazette, any other service other than those specified in
the said sub-clause to be essential defence services, the cessation of work of which
would prejudicially affect the production of defence equipment or goods; or the
operation or maintenance of any industrial establishment or unit engaged in production
of goods or equipment required for any purpose connected with defence; or repair or
maintenance of products connected with defence.
SECTION Section 3

Untitled Section

2.(1) In this Act, unless the context otherwise requires,—
(a)"essential defence services" means—
(i)any service in any establishment or undertaking dealing with
production of goods or equipment required for any purpose connected with
defence;
(ii) any service in any establishment of, or connected with, the armed
forces of the Union or in any other establishment or installation connected with
defence;
(iii) any service in any section of any establishment connected with
defence, on the working of which the safety of such establishment or employee
employed therein depends;
(iv) any other service, as the Central Government may, by notification in
the Official Gazette, declare to be essential defence services, the cessation of
work of which would prejudicially affect the—
(I)production of defence equipment or goods; or
(II) operation or maintenance of any industrial establishment or unit
engaged in production of goods or equipment required for any purpose
connected with defence; or
(III) repair or maintenance of products connected with defence;
(b)"strike" means the cessation of work, go-slow, sit down, stay-in, token strike,
sympathetic strike or mass casual leave, by a body of persons engaged in the essential
defence services, acting in combination or a concerted refusal or a refusal under a
common understanding of any number of persons who are or have been so engaged
to continue to work or to accept employment, and includes—
(i)refusal to work overtime, where such work is necessary for the
maintenance of the essential defence services;
(ii) any other conduct which is likely to result in, or results in, cessation or
retardation or disruption of work in the essential defence services.
(2)Words and expressions used herein and not defined but defined in the Industrial
Disputes Act, 1947, shall have the meanings respectively assigned to them in that Act.
SECTION Section 30

Untitled Section

2.Sub-clause ( 1) of clause 3 of the Bill empowers the Central Government to
prohibit strikes in the essential defence services by general or special order, if it is
satisfied that in the public interest; or interest of the sovereignty and integrity of
India; or security of any State; or public order; or decency; or morality, it is necessary
or expedient so to do.
SECTION Section 31

Untitled Section

3.Sub-clause ( 1) of clause 9 of the Bill empowers the Central Government to
prohibit lock-outs in any industrial establishment or unit engaged in essential defence
services by general or special order, if it is satisfied that in the public interest; or
interest of the sovereignty and integrity of India; or security of any State; or public
order; or decency; or morality, it is necessary or expedient so to do.
SECTION Section 32

Untitled Section

4.Sub-clause ( 1) of clause 10 of the Bill empowers the Central Government to
prohibit lay-off on any ground other than shortage of power or natural calamity, of
any workman (other than a badli workman or a casual workman) whose name is
borne on the muster rolls of any industrial establishment or unit engaged in the
essential defence services, by general or special order, if it is satisfied that in the public
interest; or interest of the sovereignty and integrity of India; or security of any State;
or public order; or decency; or morality, it is necessary or expedient so to do.
SECTION Section 33

Untitled Section

5.The matters in respect of which the aforementioned notification or orders may
be issued are matters of procedure and administrative detail, and as such, it is not
practicable to provide for them in the proposed Bill itself. The delegation of legislative
power is, therefore, of a normal character.
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ANNEXURE
EXTRACT FROM THE INDUSTRIAL DISPUTES ACT, 1947
(14 OF 1947)
* * * * *
SECTION Section 34

Untitled Section

2.In this Act, unless there is anything repugnant in the subject or context,—
* * * * *
(n)"public utility service" means—
* * * * *
(ia) any service in, or in connection with the working of, any major
port or dock;
* * * * *
Definitions.
88
LOK SABHA
————
A
BILL
to provide for the maintenance of essential defence services so as to secure the security
of nation and the life and property of public at large and for matters connected
therewith or incidental thereto.
————
(Shri Rajnath Singh, Minister of Defence)
MGIPMRND—329LS—16-07-2021.
SECTION Section 4

Untitled Section

3.(1) If the Central Government is satisfied that in the—
(a)public interest; or
(b)interest of the sovereignty and integrity of India; or
(c)security of any State; or
(d)public order; or
(e)decency; or
(f)morality,
it is necessary or expedient so to do, it may, by general or special order, prohibit strikes in the
essential defence services.
(2)An order made under sub-section ( 1) shall be published in such manner as the
Central Government may deem fit to bring it to the notice of the persons affected by such
order.
(3)An order made under sub-section (1) shall be in force for six months, but the Central
Government may, by a like order, extend it for any period not exceeding six months, if it is
satisfied that in the public interest it is necessary or expedient so to do.
Definitions.
Power to
prohibit
strikes in
essential
defence
services.
14 of 1947.
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(4)Upon the issue of an order made under sub-section (1)—
(a)no person engaged in the essential defence services shall go or remain on
strike;
(b)any strike declared or commenced, whether before or after the issue of such
order, by persons engaged or employed in such services shall be illegal.
SECTION Section 5

Untitled Section

4.Where any order has been issued under sub-section ( 1) of section 3, any police
officer may take all such measures as such officer may deem fit including the use of police
force, if he considers necessary, to remove any person, whose presence in any area
connected with the—
(a)defence equipment production services; or
(b)operation or maintenance of any industrial establishment or unit engaged in
production or manufacturing of goods or equipment required for any purpose connected
with defence; or
(c)repair or maintenance of products connected with defence,
would be prejudicial to the functioning, safety or maintenance of the essential defence
services.
SECTION Section 6

Untitled Section

5.(1) Any person—
(a)who commences a strike which is illegal under this Act or goes or remains on,
otherwise takes part in, any such strike; or
(b)who instigates or incites other persons to commence, or go or remain on, or
otherwise take part in, any such strike,
shall be liable to disciplinary action (including dismissal) in accordance with the same
provisions as are applicable for the purpose of taking such disciplinary action (including
dismissal) on any other ground under the terms and conditions of service applicable to him
in relation to his employment.
(2)Notwithstanding anything contained in any other law for the time being in force or
under the terms and conditions of service applicable to any person employed in the
essential defence services, before dismissing any person under sub-section ( 1), no
inquiry shall be necessary if the authority empowered to dismiss or remove such person is
satisfied that for some reason, to be recorded by that authority in writing, it is not reasonably
practicable to hold such inquiry.
SECTION Section 7

Untitled Section

6.Any person, who commences a strike which is illegal under this Act or goes or
remains on, or otherwise takes part in, any such strike, shall be punishable with
imprisonment for a term which may extend to one year or with fine which may extend to ten
thousand rupees, or with both.
SECTION Section 8

Untitled Section

7.Any person, who instigates or incites other persons to take part in, or otherwise
acts in furtherance of, a strike which is illegal under this Act, shall be punishable with
imprisonment for a term which may extend to two years, or with fine which may extend to
fifteen thousand rupees, or with both.
SECTION Section 9

Untitled Section

8.Any person, who knowingly expends or supplies any money in furtherance or
support of a strike which is illegal under this Act, shall be punishable with imprisonment for
a term which may extend to two years, or with fine which may extend to fifteen thousand
rupees, or with both.