The Basumati Private Limited ( Acquisition Of Undertaking ) Act, 1974

GOVERNMENT OF WEST BENGAL 
LEGISLATIVE DEPARTMENT 
West Bengal Act XXXV of 1974 
THE BASUMATI PRIVATE LIMITED (ACQUISITION OF 
UNDERTAKING) ACT, 1974. 
[Passed by the West Bengal Legislature.] 
[Assent of the President was first published in the Calcutta 
Gazette, Extraordinary, of the 29th July, 1974.] 
[29th July, 1974.] 
An Act to provide for the acquisition, for public purpose, of the 
undertaking of the Basumati Private Limited with a view to securing 
the proper administration and management thereoffor the purpose of 
ensuring efficient publication of the Basumati, a daily newspaper in 
the Bengali language which has a great past and tradition and timely 
publication of journals and periodicals published by it and resuming 
the publication of books, particularly Sanskrit Classics in Bengali 
version and other Bengali Classics, and also with a view to assuring 
the retention of the services of the workmen whose continued employment 
has been threatened, so that the interests of the public may be better 
served. 
WHEREAS it will be useful to the public and it will result in benefit 
and advantage to the public and having regard to the public utility it is 
expedient to provide for the acquisition of the undertaking of the 
Basumati Private Limited with a view to securing the proper 
administration and management thereof for the purpose of ensuring 
efficient publication of the Basumati, a daily newspaper in the Bengali 
language which has a great past and tradition and timely publication of 
journals and periodicals published by it and resuming the publication 
of books, particularly Sanskrit Classics in Bengali version and other 
Bengali Classics, and also with a view to assuring the retention of the 
services of the workmen whose continued employment has been 
threatened, so that the interests of the public may be better served; 
It is hereby enacted in the Twenty-fifth Year of the Republic of 
India, by the Legislature of West Bengal, as follows:- 
1. This Act may be called the Basumati Private Limited Short title. 
(Acquisition of Undertaking) Act, 1974. 
2. In this Act, unless the context otherwise requires,— 	 Definitions. 
(a) "appointed day" means such date as the State Government 
may, by notification, appoint; 
171 
The Basumati Private Limited (Acquisition of Undertaking) Act, 1974. 
[West Ben. Act 
Undertaking 
of the 
company to 
vest in the 
State 
Government. 
General effect 
of vesting. 
(Sections 3, 4.) 
(b) "Commissioner" means the Commissioner of Payments 
appointed under section 9; 
(c) "company" means the Basumati Private Limited, being a 
company as defined in the Companies Act, 1956, having 
its registered office at 166, Bepin Behari Ganguli Street, 
Calcutta; 
(d) "notification", means a notification published in the 
Official Gazette; 
(e) "prescribed" means prescribed by rules made under this 
Act; 
. W "scheduled bank" has the same meaning assigned to it in 
the Reserve Bank of India Act, 1934, and includes a 
Nationalised Bank; 
(g) "undertaking", in relation to the company, means the 
properties and assets of the company referred to in sub-
section (1) of section 4. 
3. On and from the appointed day, the undertaking of the company 
shall, by virtue of this Act, stand transferred to, and vest in, the State 
Government free from all trusts, liabilities and encumbrances. 
4. (1) The undertaking of the company shall be deemed to 
include all assets, rights, powers, authorities and privileges and all 
properties, movable and immovable, machinery including rotaries 
and composing machine, reserve funds, investments and all other 
rights and interests arising out of such properties as were immediately 
before the appointed day in the ownership, power or control of the 
company in relation to the undertaking, or in the possession of the 
company irrespective of the fact whether the company has any right, 
title or interest in such properties or not, and all documents of 
whatever nature relating thereto but does not include the right, title 
and interest of the owners of lands and buildings in possession of the 
company, cash balance of the company and the amounts receivable by 
the company from its debtors. 
(2) Any contract, whether express or implied, or other 
arrangement, whether under any statute or otherwise, in so far as it 
relates to the management of the business and affairs of the company 
in relation to its undertaking and in force immediately before the 
appointed day, or any order made by any court in so far as it relates 
1 of 1956. 
2 of 1934. 
172 
The Basumati Private Limited (Acquisition of Undertaking) Act, 1974. 
XXXV of 1974.] 
(Section 5.) 
to the management of the business and affairs of the company in 
relation to its undertaking and in force immediately before the appointed 
day, shall be deemed to have terminated on the appointed day. 
(3) All persons in charge of the management, including 
persons holding offices as directors, managers or any other personnel 
connected with the management of the company immediately before 
the appointed day, shall be deemed to have vacated their offices as such 
on the appointed day. 
(4) Notwithstanding any judgement, decree or order of any 
court, tribunal or other authority or anything contained in any law for 
the time being in force, every Receiver, Official Liquidator or any 
other person in whose possession or custody or under whose control 
the undertaking of the company or any part thereof may be, shall 
forthwith deliver possession of the said undertaking or such part 
thereof, as the case may be, to the State Government or to such person 
as the State Government may appoint in this behalf. 
(5) The Receiver, Official Liquidator or any other person who 
has, on the appointed day, in his possession or under his custody or 
control any books, documents or other papers relating to the undertaking 
of the company which has vested, under section 3, in the State 
Government, shall be liable to account for the said books, documents 
or other papers to the State Government or to such person as the State 
Government may appoint in this behalf. 
(6) All properties in the undertaking which have vested in the 
State Government under section 3 shall, by virtue of such vesting, be 
freed and discharged from any trust, obligation, mortgage, charge, lien 
and all other encumbrances affecting it, and any attachment, injunction 
or any decree or order of any court restricting the use of such property 
in any manner shall be deemed to have been withdrawn. 
(7) The State Government may take or cause to be taken all 
necessary steps for securing the possession of all properties of the 
undertaking which have vested in the State Government under 
section 3. 
5. The undertaking which has vested in the State Government 
under section 3 shall be managed by such person or body of persons 
as may be nominated by the State Government in this behalf and 
such person or body of persons shall carry on the management in 
accordance with such rules as may be made by the State Government. 
Management 
of the 
undertaking. 
173 
The Basumati Private Limited (Acquisition of Undertaking) Act, 1974. 
[West Ben. Act 
(Sections 6, 7.) 
Power of State 
Government to 
direct vesting 
of the 
undertaking in 
a corporation. 
Employment 
of certain 
employees to 
continue. 
6. (1) Notwithstanding anything contained in sections 3, 4 and 5, 
the State Government may by order in writing direct that the 
undertaking of the company together with all its properties and assets, 
specified in sub-section (1) of section 4, shall, instead of continuing to 
vest in the State Government, vest in such corporation owned or 
controlled by the State Government (hereinafter referred to as the 
corporation) and on such date, as may be specified in the direction. 
(2) Where an order vesting the undertaking of the company in 
a corporation is made under sub-section (1), all the rights, liabilities and 
obligations of the State Government in relation to the undertaking of 
the company Shall, on and from the date of such vesting, be deemed to 
have become the rights, liabilities and obligations, respectively, of such 
Corporation. 
(3) The corporation shall, for the purpose of management and 
administration of the undertaking of the company, act in accordance 
with such direction, if any, as may be issued by the State Government 
in this behalf. 
(4) The corporation may also apply to the State Government at 
any time for instructions as to the manner in which the management of 
the undertaking of the company or in relation to any matter arising in 
the course of such management shall be conducted. 
7. (1) Every person who is a workman within the meaning of the 14 of 1947. 
Industrial Disputes Act, 1947, and has been, immediately before the 
appointed day, in the employment of the company shall, on and from 
the appointed day, be deemed to be reappointed as an employee of the 
State Government or, as the case may be, of the corporation in which 
the undertaking may be vested by an order under sub-section (1) of 
section 6 and shall hold office on the same terms and conditions and 
with the same rights to pay, gratuity and other matters as would have 
been admissible to him if the undertaking of the company had not been 
vested in the State Government or in such corporation, as the case may 
be, and continue to do so unless and until his employment is duly 
terminated or until his remuneration, terms and conditions of 
employment are duly altered by the State Government or such 
corporation, as the case may be. 
(2) The State Government or the corporation may employ, on 
mutually acceptable terms and conditions, any person who is not a 
workman within the meaning of the Industrial Disputes Act, 1947 and 
who has been, immediately before the appointed day, in the employment 
of the company, and on such employment the said person shall become 
174 
The Basu ati Private Limited (Acquisition of Undertaking) Act, 1974. 
XXXV of 1974.] 
(Sections 8-10.) 
an employee of the State Government or such corporation, as 
the case may be. 
(3) Save as otherwise provided in sub-sections (1) and (2), the 
services of any or every person employed in the company before the 
appointed day shall stand terminated on and from the appointed day. 
8. For the vesting of the properties of the undertaking in the State 
Government under section 3, there shall be paid by the State Govern-
ment to the owners of such properties and to the persons having any 
interest therein an amount of rupees two lakhs and sixty thousand. 
9. (1) The State Government shall, by notification, appoint such 
person as it may think fit to be the Commissioner of Payments who 
shall determine the persons entitled to the amount referred to in 
section 8 and apportion the same according to the value of the 
properties and their respective rights therein. 
(2) The Commissioner shall get such salary and allowances as 
may be determined by the State Government. 
(3) The salary and allowances of the Commissioner shall be 
defrayed out of the Consolidated Fund of the State. 
10. (I) Every owner of, and every person having an interest in, the 
properties vested in the State Government under section 3 or any part 
thereof and having a claim in the amount referred to in section 8 
(hereinafter referred to as the claimant) may prefer such claim before 
the Commissioner within thirty days from the date specified by the 
State Government by notification: 
Provided that if the Commissioner is satisfied that the claimant 
was prevented by sufficient cause from preferring the claim within the 
said period of thirty days, he may, on the expiry of the said period of 
thirty days, entertain the claim within a further period of thirty days, 
but not thereafter. 
(2) The Commissioner shall fix a date on or before which every 
claimant shall file the proof of his claim. 
(3) Not less than fourteen days' notice of the date so fixed shall 
be given by advertisement in one issue of the daily newspaper in the 
English language and one issue of such daily newspaper in the Bengali 
language and every such notice shall call upon the claimant to file the 
proof of his claim with the Commissioner within the time specified in 
the advertisement. 
Amount to be 
paid for vesting 
of the 
properties. 
Commissioner 
of Payments to 
be appointed. 
Claims to be 
made to the 
Commissioner. 
175 
The Basumati Private Limited (Acquisition of Undertaking) Act, 1974. 
[West Ben. Act 
Duty to 
furnish 
particulars. 
Penalties. 
(Sections 11, 12.) 
(4) The Commissioner shall, after such investigation as may, 
in his opinion, be necessary and after giving the claimant a reasonable 
opportunity of being heard, in writing admit or reject the claim in 
whole or in part. 
(5) The Commissioner shall have the power to regulate his own 
procedure in all matters arising out of the discharge of his functions 
including the place or places at which he will hold his sittings, and 
shall, for the purpose of making any investigation under this Act, 
have the same powers as are vested in a civil court under the Code of 
Civil Procedure, 1908, while trying a suit, in respect of the following 
matters, namely:— 
(a) the summoning and enforcing the attendance of any 
witness and examining him on oath; 
(b) the discovery and production of any document or other 
material object producible as evidence; 
(c) the reception of evidence on affidavits; 
(d) the issuing of any commission for the examination of 
witnesses. 
(6) A claimant who is dissatisfied with any decision of the 
Commissioner may prefer an appeal against such decision to such 
authority, in such manner and within such time, as may be prescribed. 
11. The Company shall within such period as the State Govern-
ment may allow in this behalf furnish to the State Government or to 
the corporation a complete inventory of all the properties and assets of 
the company as on the appointed day pertaining to the undertaking 
which has vested in the State Government under section 3. 
12. (1) Any person, who— 
(a) having in his possession, custody or control any 
property forming part of the undertaking of the 
company, wrongfully withholds such property from 
the State Government or the Corporation; or 
(b) wrongfully obtains possession of any property 
forming part of the undertaking of the company 
which has vested in the State Government or in the 
corporation under this Act; or 
(c) wilfully withholds or fails to furnish to the State 
Government or the corporation, any document which 
may be in his possession, custody or control; or 
5 of 1908. 
176 
The Basumati Private Limited (Acquisition of Undertaking) Act, 1974. 
XXXV of 1974.] 
(Sections 13, 14.) 
(d) wilfully fails to furnish an inventory as required under 
section 11; 
shall be punishable with imprisonment for a term which may extend to 
two years, or with fine which may extend to ten thousand rupees, or 
with both: 
Provided that the court trying any offence under clause (a) or clause 
(b) or clause (c) of this sub-section may, at the time of convicting the 
accused person, order him to deliver up or refund, within a time to be 
fixed by the court, any property or cash wrongfully withheld or 
obtained or any document wilfully withheld or not furnished. 
(2) No court shall take cognizance of an offence punishable 
under this section except with the previous sanction of the State 
Government or an officer authorised by that Government in thisi 
behalf. 
13. (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 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 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, manager, secretary or other officer of the company, such 
director or manager or secretary or other officer shall be deemed to be 
guilty of that offence and shall be liable to be proceeded against and 
punished accordingly. 
Explanation.— For the purpose of this section— 
(a) "company" means any body corporate and a firm or other 
association of individuals; and 
(b) "director", in relation to a firm, means a partner in the 
firm. 
14. The provisions of this Act shall have effect notwithstanding 
anything inconsistent therewith contained in any law other than this 
Act or in any instrument having effect by virtue of any law other than 
Offences by 
companies. 
Act to have 
overriding 
effect. 
177 
The Basumati Private Limited (Acquisition of Undertaking) Act , 1974. 
3000 7  of 1974.] 
(Sections 15-17. ) 
Protection of 
action taken in 
good faith. 
Power to 
remove 
difficulties. 
Power to make 
rules. 
this Act or in any decree or order of any court, tribunal or other 
authority. 
15. (1) No suit, prosecution or other legal proceeding shall lie 
against the State Government or the corporation or any of its officers 
or other employees for anything which is in good faith done or 
intended to be done under this Act. 
(2) No suit or other legal proceeding shall lie against the State 
Government or the corporation or any of its officers or other employees 
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. 
16. If any difficulty arises in giving effect to the provisions of this 
Act, the State Government may, by order, not inconsistent with the 
provisions of this Act, remove the difficulty: 
Provided that no such order shall be made after the expiry of a 
period of two years from the commencement of this Act. 
17. The State Government may, by notification, make rules for 
carrying out the provisions' of this Act. 
178 

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