In India there are several Acts and legislations enacted
by the Government of India for regulation of industries in the country.
These enactments play a very important role in the country's overall progress
and economic development. These legislations are amended from time to
time in accordance with the changing circumstances and environment. The
most important Act is the Companies Act,1956 which relates to setting
up and operation of companies in India. It empowers the Central Government
to regulate the formation, financing, functioning and winding up of companies.
It contains the mechanism regarding organisational, financial, managerial
and all the relevant aspects of a company.
In order to provide the Central Government with the means
to implement its industrial policies, several legislations have been enacted.
The most important being the Industries (Development and Regulation) Act,
1951 (IDRA). The main objectives of the Act is to empower the Government
to take necessary steps for the development of industries; to regulate
the pattern and direction of industrial development; and to control the
activities, performance and results of industrial undertakings in the
The bulk of the transactions in trade, commerce and industry
are based on contracts. In India, the Indian Contract Act,1872 is the
governing legislation for contracts, which lays down the general principles
relating to formation, performance and enforceability of contracts and
the rules relating to certain special types of contracts like Indemnity
and Guarantee; Bailment and Pledge; as well as Agency.
Another important aspect of legislations is the industrial
relations, which involves various aspects of interactions between the
employer and the employees; among the employees as well as between the
employers. In such relations whenever there is a clash of interest, it
may result in dissatisfaction for either of the parties involved and hence
lead to industrial disputes or conflicts. The Industrial Disputes Act,
1947 is the main legislation for investigation and settlement of all industrial
disputes. The Act enumerates the contingencies when a strike or lock-out
can be lawfully resorted to, when they can be declared illegal or unlawful,
conditions for laying off, retrenching, discharging or dismissing a workman,
circumstances under which an industrial unit can be closed down and several
other matters related to industrial employees and employers.
Trade unions are also an important part of an industrial
set up. The legislation regulating these trade unions is the Indian Trade
Unions Act, 1926 . The Act deals with the registration of trade unions,
their rights, their liabilities and responsibilities as well as ensures
that their funds are utilised properly. It gives legal and corporate status
to the registered trade unions. It also seeks to protect them from civil
or criminal prosecution so that they could carry on their legitimate activities
for the benefit of the working class.