LexThe Britannia Engineering Company Limited ( Titagarh Unit ) ( Acquisition And Transfer Of Undertakings ) Act, 1984
West Bengal · state statute
Open in Lexace · Ask the AI about this actGOVERNMENT OF WEST BENGAL
LEGISLATIVE DEPARTMENT
West Bengal Act XLIII of 1984
THE BRITANNIA ENGINEERING COMPANY
LIMITED (TITAGARH UNIT) (ACQUISITION
AND TRANSFER OF UNDERTAKINGS)
ACT, 1984.
[Passed by the West Bengal Legislature.]
[Assent of the President of India was first published in the Calcutta
Gazette, Extraordinary, of the 30th July, 1985.]
[30th July, 1985.]
An Act to provide for the acquisition and transfer, in the public interest,
of the undertakings of Britannia Engineering Company Limited
(Titagarh Unit), and for matters connected therewith or incidental
thereto.
WHEREAS Britannia Engineering Company Limited (Titagarh Unit)
had been engaged in the manufacture and production of road rollers, tea
processing machineries, jute mill machineries, railway equipments and
heat exchangers;
AND WHEREAS the management of the undertakings of Britannia
Engineering Company Limited (Titagrah Unit) had been conducted in
a manner highly detrimental to the public interest;
AND WHEREAS the management of the undertakings of Britannia
Engineering Company Limited (Titagarh Unit) was taken over by the
65 of 1951.
Central Government under section 18FA of the Industries (Development
and Regulation) Act, 1951;
AND WHEREAS for the purpose of reconstructing and rehabilitating the
undertakings of Britannia Engineering Company Limited (Titagarh Unit)
so as to subserve the interests of the general public by the augmentation
of production and distribution of the aforesaid articles which are essential
to the needs of the general public, it is necessary to acquire the undertakings
of the Company;
It is hereby enacted in the Thirty-fifth Year of the Republic of India,
by the Legislature of West Bengal, as follows:-
291
The Britannia Engineering Company Limited (Titagarh Unit)
(Acquisition and Transfer of Undertakings) Act, 1984.
[West Ben. Act
(Chapter I.—Preliminary.—Sections 1, 2.)
CHAPTER I
Preliminary
Short title
and
commence-
ment.
1. (1) This Act may be called the Britannia Engineering Company
Limited (Titagarh Unit) (Aquisition and Transfer of Undertakings) Act,
1984.
(2) It shall come into force on such date as the State Government
may, by notification, appoint.
Definitions. 2. In this Act, unless the context otherwise requires,—
(a) "appointed day" means the date on which this Act comes
into force;
(b) "Commissioner" means the Commissioner of Payments
appointed under section 16;
(c) "Company" means Britannia Engineering Company Limited
(Titagarh Unit), being a company as defined in the Companies 1 of 1956.
Act, 1956, and having its registered office at Titagarh, post
office Titagarh, district 24-Parganas;
(d) "date of taking over of management of the undertakings of
the Company" means the 22nd day of May, 1976;
(e) "existing Government company" means a Government
company which is carrying on business on the appointed
day;
(f) "new Government company" means a Government company
formed and registered on or after the appointed day;
(g) "notification" means a notification published in the Official
Gazette;
(h) "prescribed" means prescribed by rules made under this
Act;
(i) "specified date" means such date as the State Government
may, for the purpose of any of the provisions of this Act,
by notification, specify, and different dates may be specified
for different provisions of this Act;
(j) words and expressions used herein and not defined, but
defined in the Companies Act, 1956, have the meanings
respectively assigned to them in that Act.
292
The Britannia Engineering Company Limited (Titagarh Unit)
(Acquisition and Transfer of Undertakings) Act, 1984.
XLIII of 1984.]
(Chapter 11.—Acquisition and transfer of the undertakings
of the Company.—Sections 3, 4.)
CHAPTER II
Acquisition and transfer of the undertakings of the Company
3. On the appointed day, the undertakings of the Company, and the
right, title and interest of the Company in relation to its undertakings,
shall by virtue of this Act, stand transferred to, and vest in, the State
Government.
4. (1) The undertakings of the Company shall be deemed to include
all assets, rights, lease-holds, powers, authorities and privileges, and all
property, movable and immovable, including lands, buildings, offices,
factories, workshops, stores, instruments, plants, machinery and
equipment, installations, laboratories, office furniture, stationery and
equipment, vhicles, patents, trade marks, cash balances, cash in hand,
reserve funds, instruments, book debts and all other rights and interests
in, or arising out of, such property as were immediately before the
appointed day in the ownership, possession, power or control of the
Company, whether within or outside India, and all books of account,
registers and all other documents of whatever nature relating thereto.
(2) All properties and assets as aforesaid which have vested in the
State Government under section 3 shall, by force of such vesting, be
freed and discharged from any trust, obligation, mortgage, charge, lien
and all other encumbrances affecting them, and any attachment, injuction,
decree or order of any court or other authority restricting the use of such
properties or assets in any manner or appointing any receiver in respect
of the whole or any part of such properties or assets shall be deemed
to have been withdrawn.
(3) Every mortgagee of any property which has vested under this
Act in the State Government and every person holding any charge, lien
or other interest in, or in relation to, any such property shall give, within
such time and in such manner as may be prescribed, an intimation to
the Commissioner of such mortgage, charge, lien or other interest.
(4) For the removal of doubts, it is hereby declared that the mortgagee
of any property referred to in sub-section (3) or any other person holding
any charge, lien or other interest in, or in relation to, any such property
shall be entitled to claim, in accordance with his rights and interests,
payment of the mortgage money or other dues, in whole or in part, out
of the amount of compensation determined under section 8, and also out
of the amount determined under section 9, but, no such mortgage, charge,
293
Transfer to,
and vesting
in, State
Government
of the
undertakings
of the
Company.
General
effect of
vesting.
The Britannia Engineering Company Limited (Titagarh Unit)
(Acquisition and Transfer of Undertakings) Act, 1984.
[West Ben. Act
(Chapter 11.—Acquisition and transfer of the undertakings
of the Company.—Section 5.)
Central
Government
or State
Government
or existing
or new
Government
company not
to be liable
for certain
prior
liabilities.
lien or other interest shall be enforceable against any property which has
vested in the State Government.
(5) Any licence or other instrument granted to the Company in
relation to any undertaking which has vested in the State Government
under section 3 at any time before the appointed day and in force
immediately before the appointed day shall continue to be in force on
and after such day in accrodance with its tenor in relation to and for the
purpose of such undertaking, and, on and from the date of vesting of
such undertaking, under section 6, in an existing Government company,
or under section 7, in a new Government company, the existing or the
new Government company, as the case may be, shall be deemed to be
substituted in such licence or other instrument as if such licence or other
instrument had been granted to such existing or new Government company
and such existing or new Government company shall hold it for the
remainder of the priod for which the Comapany would have held it under
the terms thereof.
(6) If, on the appointed day, any suit, appeal or other proceeding of
whatever nature, in relation to any property or asset which has vested
in the State Government under section 3, instituted or preferred by or
against the Company, is pending, the same shall not abate, be discontinued
or be, in any way, prejudicially affected by reason of the transfer of the
undertakings of the Company or of anything contained in this Act, but
the suit, appeal or other proceeding may be continued, prosecuted or
enforced by or against the State Government or, where the undertakings
of the Company are directed under section 6 to vest in an existing
Government company or become transferred by virtue of the provisions
of section 7 to a new Government company, by or against such
Government company.
5. (1) Every liability, other than the liability specified in sub-
section (2), of the Company in respect of any period prior to the appointed
day shall be the liability of the Company and shall be enforceable against
it and not against the Central Government or the State Government or,
where the undertakings of the Company are directed under section 6 to
vest in an existing Government company or become transferred by virtue
of the provisions of section 7 to a new Government company, against
such Government company.
(2) Any liability arising in respect of—
(a) loans advanced by the Central Government or the State
Government, or both, to the Company (together with interest
due thereon), on or after the date of taking over of
management of the undertakings of the Company,
294
The Britannia Engineering Company Limited (Titagarh Unit)
(Acquisition and Transfer of Undertakings) Act, 1984.
XLIII of 1984.1
(Chapter IL—Acquisition and transfer of the undertakings
of the Company.—Section 5.)
(b) loans advanced by a bank to the Company (together with
interest due thereon) on or after the date of taking over of
management of the undertakings of the Company,
(c) loans advanced by the Industrial Reconstruction Corporation
of India Limited to the Company (together with interest due
thereon) on or after the date of taking over of management
of the undertakings of the Company,
(d) wages, salaries and other dues of employees of the Company
and dues on account of any deductions made from wages
and salaries and other dues of such employees relating
to any period commencing on and from the date of taking
over of management of the undertakings of the Company,
Or
(e) any debt incurred by the Company during any period
commencing on and from the date of taking over of
management of the undertakings of the Company, not being
a debt falling under clause (a), clause (b), clause (c), or
clause (d),
shall, on and from the appointed day, be the liability of the State
Government or the Government company as aforesaid and shall be
discharged by the State Government or the existing Government company
or the new Government company as aforesaid as and when repayment
of such loans becomes due or such wages, salaries and other dues or
debt become due and payable.
(3) For the removal of doubts, it is hereby declared that,—
(a) save as otherwise expressly provided in this Act, no liability
of the Company in relation to its undertakings in respect of
any period prior to the appointed day shall be enforceable
against the Central Government or the State Government or,
where the undertakings of the Company are directed under
section 6 to vest in an existing Government company or
become transferred by virtue of the provisions of section 7
to a new Government company, against such Government
company;
(b) no award, decree or order of any court, tribunal or other
authority in relation to the undertakings of the Company
passed on or after the appointed day, in respect of any
matter, claim or dispute, which arose before the appointed
295
The Britannia Engineering Company Limited (Titagarh Unit)
(Acquisition and Transfer of Undertakings) Act, 1984.
[West Ben. Act
(Chapter IL—Acquisition and transfer of the undertakings
of the Company.—Section 6.)
day shall be enforceable against the Central Government or
the State Government or, where the undertakings of the
Company are directed under section 6 to vest in an existing
Government company or become transferred by virtue of
the provisions of section 7 to a new Government company,
against such Government company;
(c) no liability incurred by the Company before the appointed
day for the contravention of any provision of any law for
the time being in force shall be enforceable against the
Central Government or the State Government or, where the
undertakings of the Company are directed under section 6
to vest in an existing Government company or become
transferred by virtue of the provisions of section 7 to a
new Government company, against such Government
company.
Power of
State
Government
to direct
vesting of
the
undertakings
of the
Company in
an existing
Government
company.
6. (1) Notwithstanding anything contained in sections 3 and 4,
and subject to the provisions of section 7, the State Government may,
if it is satisfied that an existing Government company is willing to
comply, or has complied, with such terms and conditions as that
Government may think fit to impose, direct, by notification, that the
undertakings of the Company, and the right, title and interest of the
Company in relation to its undertakings which have vested in the State
Government under section 3, shall, instead of continuing to vest in the
State Government, vest in that existing Government company either on
the date of publication of the notification or on such earlier or later date
(not being a date earlier than the appointed day) as may be specified in
the notification.
(2) Where the right, title and interest of the Company in relation to
its undertakings vest under sub-section (1) in an existing Government
company, that Government company shall, on and from the date of
such vesting, be deemed to have become, and until the transfer of the
undertakings by virtue of the provisions of section 7 to a new Govern-
ment company, be deemed to be, the owner in relation to such under-
takings and the rights and liabilities of the State Government in
relation to such undertakings shall, on and from the date of such vesting,
be deemed to have become, and until the date of such transfer, be
deemed to be, the rights and liabilities, respectively, of that existing
Government company.
296
The Britannia Engineering Company Limited (Titagarh Unit)
(Acquisition and Transfer of Undertakings) Act, 1984.
XLIII of 1984.]
(Chapter II.—Acquisition and transfer of the undertakings
of the Company.—Section 7.—Chapter III—Payment rf
amounts.—Sections 8, 9.)
7. (1) Notwithstanding anything contained in sections 3 and 4,
where the undertakings of the Company have been directed under sub-
section (1) of section 6 to vest in an existing Government company, the
State Government may, if it is satisfied that a new Government company
is willing to comply, or has complied, with such terms and conditions
as that Government may think fit to impose, declare, by notification, that
the undertakings of the Company be transferred to that new Government
company, and on the issue of such declaration, the right, title and interest
of the Company in relation to its undertakings which had been directed
under sub-section (1) of section 6 to vest in an existing Government
company, shall, instead of continuing to vest in that existing Government
company, vest in that new Government company with effect from the
date on which such declaration is made.
(2) Where the right, title and interest of the existing Govern-
ment company in relation to the undertakings of the Company vest under
sub-section (1) in a new Government company, that new Government
company shall, on and from the date of such vesting, be deemed to have
become the owner in relation to such undertakings and all the rights and
liabilities of the existing Government company in relation to such
undertakings shall, on and from the date of such vesting, be deemed to
have become the rights and liabilities, respectively, of that new
Government company.
CHAPTER III
Payment of amounts
8. For the transfer to, and vesting in, the State Government, under
section 3, of the undertakings of the Company and the right, title and
interest of the Company in relation to its undertakings, there shall be
given by the State Government to the Company in the manner specified
in Chapter VI an amount of rupees ninety-three lakhs and twenty-three
thousand.
9. (1) For the deprivation of the Company of the management
of its undertakings, there shall be given to the Company by the State
Government an amount of rupees nineteen thousand and eight
hundred.
Transfer of
the
undertakings
of the
Company
from an
existing
Government
company to
a new
Government
company.
Payment of
amount.
Payment of
further
amount.
297
The Britannia Engineering Company Limited (Titagarh Unit)
(Acquisition and Transfer of Undertakings) Act, 1984.
[West Ben. Act
(Chapter 1V.—Management, etc., of the undertakings of
the Company.—Section 10.)
(2) The amount specified in section 8 and the amount specified in
sub-section (1) of this section shall carry simple interest at the rate of
four per cent. per annum for the period commencing on the appointed
day and ending on the date on which payment of such amounts is made
by the State Government to the Commissioner.
(3) The amount specified in sub-section (1) and the amount determined
in accordance with the provisions of sub-section (2) shall be given by
the State Government to the Company in addition to the amount specified
in section 8.
(4) The amounts payable under section 8 and sub-sections (1) and
(2) of this section shall be payable in four equal annual instalments.
(5) For the removal of doubts, it is hereby declared that the liabilities
of the Company in relation to its undertakings which have vested in
the State Government under section 3 shall be discharged from the
amount specified in section 8, and also from the amount specified in
sub-section (1) and the amount determined under sub-section (2) of this
section, in accordance with the right and interests of the creditors of
the Company.
CHAPTER IV
Management, etc., of the undertakings of the Company
Manage-
ment, etc., of
the
undertakings
of the
Company.
10. (1) The general superintendence, direction, control and
management of the affairs and business of the undertakings of the
Company, the right, title and interest in relation to which have vested
in the State Government under section 3, shall,—
(a) where a direction has been given by the State Government
under sub-section (1) of section 6, vest, on and from the date
specified in such direction, in the existing Government
company specified therein; or
(b) where a declaration has been made under sub-section (1)
of section 7, vest, on and from the date of such declaration,
in the new Government company specified therein; or
(c) where no direction referred to in clause (a) or declaration
under clause (b) has been given or made, vest in one or more
Custodians appointed by the State Government under sub-
section (2),
298
The Britannia Engineering Company Limited (Titagarh Unit)
(Acquisition and Transfer of Undertakings) Act, 1984.
XLIII of 1984.]
(Chapter IV.—Management, etc., of the undertakings of
the Company.—Section 11.)
and thereupon the existing, or new, Government company so specified
or the Custodian or Custodians so appointed, as the case may be, shall
be entitled to exercise, to the exclusion of all other persons, all such
powers and do all such things as the Company is authorised to exercise
and do in relation to its undertakings.
(2) The State Government may appoint one or more individuals or
a Government company as the Custodian or Custodians of the undertakings
of the Company in relation to which no direction has been made by it
under sub-section (1) of section 6 or no declaration has been made by
it under sub-section (1) of section 7.
(3) The Custodian or Custodians so appointed shall receive from the
funds of the undertakings of Company such remuneration as the State
Government may fix and hold office during the pleasure of the State
Government.
11. (1) On the vesting of the management of the undertakings of
the Company in an existing, or a new, Government company or on the
appointment of a Custodian or Custodians, all persons in charge of the
management of the undertakings of the Company immediately before
such vesting or appointment shall be bound to deliver to such Government
company, or Custodian or Custodians, as the case may be, all assets,
books of account, registers and other documents in their custody relating
to the undertakings of such Company.
(2) The State Government may issue such directions as it may deem
desirable in the circumstances of the case to the existing, or new,
Government company or the Custodian or Custodians as to the powers
and duties of such Government company or Custodian or Custodians,
and such Government company or Custodian or Custodians may also,
if it is considered necessary so to do, apply to the State Government at
any time for instructions as to the manner in which the management of
the undertakings of the Company shall be conducted or in relation to
any other matter arising in the course of such management.
(3) Any person, who on the appointed day has in his possession or
under his control any books, documents or other papers relating to the
undertakings of the Company which have vested in the State Government
or in any existing, or new, Government company and which belong to
the Company, or would have so belonged if the undertakings of the
Company had not vested in the State Government or the existing, or new,
Government company, shall be liable to account for the said books,
299
Duty of
persons in
charge of
management
of the
undertakings
of the
Company to
deliver all
assets, etc.
The Britannia Engineering Company Limited (Titagarh Unit)
(Acquisition and Transfer of Undertakings) Act, 1984.
[West Ben. Act
Accounts
and audit.
Employment
of certain
employees
to continue.
(Chapter IV.—Management, etc., of the undertakings of
the Company.—Section 12.—Chapter V.—Provisions
relating to the employees of the Company.—Section 13.)
documents or other papers to the State Government or the existing, or
new, Government company, as the case may be, and shall deliver them
up to the State Government or the existing, or new, Government company
or to such person or body of persons as the State Government or such
Government company may specify in this behalf.
(4) The State Government or the existing, or new, Government
company may take, or cause to be taken, all necessary steps for securing
possession of all undertakings which have vested in the State Government
or the existing, or new, Government company under this Act.
(5) The Comapany shall, within such period as the State Government
may allow in this behalf, furnish to that Government a complete inventory
of all its properties and assets, as on the appointed day, pertaining to
the undertakings which have vested in the State Government under
section 3, and, for this purpose, the State Government or the existing,
or new, Government company shall afford to the Company all reasonable
facilities.
12. The Custodian or Custodians of the undertakings of the Company
shall maintain an account of the undertakings of the Company in such
form and under such conditions as may be prescribed and the provisions
of the Companies Act, 1956 shall apply to the audit of the account so
maintained as they apply to the audit of the accounts of a Company.
CHAPTER V
Provisions relating to the employees of the Company
13. (1) Every person who has been, immediately before the appointed
day, employed in any of the undertakings of the Company shall become,—
(a) on and from the appointed day, an employee of the State
Government, and
(b) where the undertakings of the Company are directed, under
sub-section (1) of section 6, to vest in an existing Government
company, or are transferred by virtue of the provisions of
section 7, to a new Government company, an employee of
such Government company on and from the date of such
vesting or transfer,
1 of 1956.
300
The Britannia Engineering Company Limited (Titagarh Unit)
(Acquisition and Transfer of Undertakings) Act, 1984.
XLIII of 1984.]
(Chapter V.—Provisions relating to the employee of
the Company.—Section 14.—Chapter VI.—
Commissioner of Payments.—Section 15.)
and shall hold office or service under the State Government or the
existing, or new, Government company, as the case may be, with the
same rights and privileges as to pension, gratuity and other matters as
would have been admissible to him if there had been no such vesting
or transfer and shall continue to do so unless and until his employment
under the State Government or the existing, or new, Government company,
as the case may be, is duly terminated or until his remuneration and other
conditions or service are duly altered by the State Government or the
existing, or new, Government company, as the case may be.
14 of 1947. (2) Notwithstanding anything contained in the Industrial Disputes
Act, 1947, or in any other law for the time being in force, the transfer
of the services of any officer or other person employed in the undertakings
of the Company to the State Government or the existing, or new,
Government company, as the case may be, shall not entitle such officer
or other employee to any compensation under this Act or under any other
law for the time being in force and no such claim shall be entertained
by any court, tribunal or other authority.
14. (1) Where the Company has established a provident fund or
superannuation, welfare or other fund for the benefit of the persons
employed in the undertakings of the Company, the money relatable to
the employees, whose services have become transferred by or under this
Act to the State Government or the existing, or new, Government company,
as the case may be, shall, out of the moneys standing, on the appointed
day, to the credit of such provident fund or superannuation, welfare or
other fund, stand transferred to, and vest in, the State Government or
the existing, or new, Government company, as the case may be.
(2) The money which stand transferred under sub-section (1) to the
State Government or the existing, or new, Government company, as the
case may be, shall be dealt with by that Government or the existing, or
new, Government company in such manner as may be prescribed.
CHAPTER VI
Commissioner of Payments
15. (1) The State Government shall, for the purpose of disbursing
the amounts payable under sections 8 and 9, by notification, appoint a
Commissioner of Payments.
301
Provident
fund and
other funds.
Appoint-
ment of
Commis-
sioner of
Payments.
The Britannia Engineering Company Limited (Titagarh Unit)
(Acquisition and Transfer of Undertakings) Act, 1984.
[West Ben. Act
Payment by
State
Government
to the
Commis-
sioner.
Certain
powers of
State
Government
or existing
or new,
Government
company.
(Chapter V1—Commissioner of Payments.—Sections 16, 17.)
(2) The State Government may appoint such other persons as it may
think fit to assist the Commissioner and thereupon the Commissioner
may authorise one or more of such persons also to exercise all or any
of the powers exercisable by him under this Act, and different persons
may be authorised to exercise different powers.
(3) Any person authorised by the Commissioner to exercise any of
the powers exercisable by the Commissioner may exercise those powers
in the same manner and with the same effect as if they have been
conferred on that person directly by this Act and not by way of
authorisation.
(4) The salaries and allowances of the Commissioner and other
persons appointed under this section shall be defrayed out of the
Consolidated Fund of the State.
16. (1) Subject to the provisions of sub-section (4) of section 9, the
State Government shall, within thirty days from the specified date, pay,
in cash, to the Commissioner, for payment to the Company,—
(a) the first instalment of the amount specified in section 8, and
(b) the first instalment of the amounts payable to the Company
under section 9:
Provided that twelve months shall not intervene between
the date of payment of one instalment and the date of
payment of the next instalment.
(2) A deposit account shall be opened by the State Government in
favour of the Commissioner in the Public Account of the State, and every
amount paid under this Act to the Commissioner shall be deposited by
him to the credit of the said deposit account and the said deposit account
shall be operated by the Commissioner.
(3) Interest accruing on the amounts standing to the credit of the
deposit account referred to in sub-section (2) shall enure to the said
account.
17. (1) The State Government or the existing, or new, Government
company, as the case may be, shall be entitled to receive up to the
specified date, to the exclusion of all other persons, any money due to
the Company, in relation to its undertakings which have vested in the
State Government or the existing, or new, Government company, as the
case may be, and realised after the appointed day, notwithstanding that
the realisation pertains to a period prior to the appointed day.
302
The Britannia Engineering Company Limited (Titagarh Unit)
(Acquisition and Transfer of Undertakings) Act, 1984.
XLIII of 1984.]
(Chapter VL—Commissioner of Payments.—Sections 18-20.)
(2) The State Government or the existing, or new, Government
company, as the case may be, may make a claim to the Commissioner
with regard to every payment made by it after the appointed day for
discharging any liability of the Company, in relation to any period prior
to the appointed day; and every such claim shall have priority in accordance
with the priorities attaching, under this Act, to the matter in relation to
which such liability has been discharged by the State Government or the
existing, or new, Government company, as the case may be.
(3) Save as otherwise provided in this Act, the liabilities of the
Company in respect of any transaction prior to the appointed day, which
have not been discharged on or before the specified date, shall be the
liabilities of the Company.
18. Every person having a claim against the Company shall prefer Claims to be
such claim before the Commissioner within thirty Clays from the specified made to the
Commis-
date: sioner.
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 entertain the claim within a further period
of thirty days and not thereafter.
19. The claims arising out of the matter specified in the Schedule Priority of
shall have priorities in accordance with the following principles:— claims.
(a) Category I shall have precedence over all other categories
and Category II shall have precedence over Category III,
and so on;
(b) the claims specified in each of the categories shall rank
equally and be paid in full, but if the amount is insufficient
to meet such claims in full, they shall abate in equal
proportions and be paid accordingly;
(c) the question of discharging any liability with regard to a
matter specified in a lower category shall arise only if a
surplus is left after meeting all the liabilities specified in the
immediately higher category.
20. (1) On receipt of the claims made under section 18, the Examination
Commissioner shall arrange the claims in the order of priorities specified of claims.
in the Schedule and examine the same in accordance with such order
of priorities.
303
The Britannia Engineering Company Limited (Titagarh Unit)
(Acquisition and Transfer of Undertakings) Act, 1984.
{West Ben. Act
Admission
or rejection
of claims.
(Chapter VI.—Commissioner of Payments.—Section 21.)
(2) If, on examination of the claims, the Commissioner is of the
opinion that the amount paid to him under this Act is not sufficient to
meet the liabilities specified in any lower category, he shall not required
to examine any claim in respect of such lower category.
21. (1) After examining the claims with reference to the priorities
set out in the Schedule, the Commissioner shall fix a date on or before
which every claimant shall file the proof of his claim.
(2) Not less than fourteen days' notice of the date so fixed shall be
given by advertisement in such issue of any daily newspaper in the
English language and in such issue of daily newspaper in such regional
language as the Commisioner may consider suitable, 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.
(3) Every claimant who fails to file the proof of his claim within
the time specified by the Commissioner shall be excluded from the
disbursements made by the Commissioner.
(4) The Commissioner shall, after such investigation as may, in his
opinion, be necessary and after giving the Company an opportunity of
refuting the claim and after giving the claimant a reasonable opportunity
of being heard, by order 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:—
(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 affidavit;
(d) the issuing of any commission for the examination of
witnesses.
(6) Any investigation before the Commissioner shall be deemed to
be a judicial proceeding within the meaning of sections 193 and 228 of
the Indin Penal Code and the Commissioner shall be deemed to be a civil
court for the purposes of section 195 and Chapter XXVI of the Code
of Criminal Procedure, 1973.
5 of 1908.
45 of 1860.
2 of 1974.
304
The Britannia Engineering Company Limited (Titagarh Unit)
(Acquisition and Transfer of Undertakings) Act, 1984.
XLIII of 1984.1
(Chapter V1.—Commissioner of Payments.— Sections 22-24.--
Chapter VII.—Miscellaneous.—Section 25.)
(7) A claimant who is dissatisfied with the decision of the
Commissioner may prefer an appeal against the decision to the principal
civil court of original jurisdiction within the local limits of whose
jurisdiction the registered office of the Company is situated:
Provided that where a person who is a Judge of a High Court is
appointed to be the Commissioner, the appeal shall lie to the High Court
at Calcutta and such appeal shall be heard and disposed of by not less
than two Judges of the High Court.
22. After admitting a claim under this Act, the amount due in respect
of such claim shall be paid by the Commissioner to the person or persons
to whom such amount is due, and, on such payment, the liability of the
Company in respect of such claim shall stand discharged.
23. (1) If, out of the moneys paid to him in relation to the undertakings
of the Company, there is a balance left after meeting the liabilities in
accordance with the priorities specified in the Schedule, the Commissioner
shall disburse such balance to the Company.
(2) Where any machinery, equipment or other property has vested
under this Act in the State Government or the existing, or new, Government
company, as the case may be, but such machinery, equipment or other
property does not belong to the Company, it shall be lawful for the State
Government or the existing, or new, Government company, as the case
may be, to continue to possess such machinery, equipment or other
property on the same terms and conditions under which they were
possessed by the Company immediately before the appointed day.
24. Any money paid to the Commissioner which remains undisbursed
or unclaimed on the date immediately preceding the date on which the
office of the Commissioner is finally wound up shall be transferred by
the Commissioner to the general revenue account of the State Government;
but a claim to any money so transferred may be preferred to the State
Government by the persons entitled to such payment and shall be dealt
with as if such transfer had not been made, and the order, if any, for
the payment of the claim shall be treated as an order for the refund of
the revenue.
CHAPTER VII
Miscellaneous
25. The provisions of this Act shall have effect notwithstanding
anything inconsistent therewith contained in any other law for the time
being in force or in any instrument having effect by virtue of any law
other than this Act, or in any decree or order or any court, tribunal or
other authority.
305
Disburse-
ment of
money by
Commis-
sioner to
claimants.
Disburse-
ment of
amounts to
the
Company
and
possession
of certain
machinery,
equipment,
etc.
Undisbursed
or unclaimed
amount to be
deposited to
the general
revenue
account.
Act to have
overriding
effect.
The Britannia Engineering Company Limited (Titagarh Unit)
(Acquisition and Transfer of Undertakings) Act, 1984.
[West Ben. Act
(Chapter VII.—Miscellaneous.—Sections 26-28.)
Assumption
of liability.
Contracts to
cease to
have effect
unless
ratified by
the State
Government
or existing,
or new,
Government
company.
Penalties.
26. (1) Where any liability of the Company arising out of any item
specified in Category I of the Schedule is not discharged fully by the
Commissioner out of the amounts paid to him under this Act, the
Commissioner shall intimate in writing to the State Government the
extent of the liability which remains undischarged and that liability shall
be assumed by the State Government.
(2) The State Government may, by order, direct the Company to take
over the liability assumed by the State Government under sub-section
(1), and, on receipt of such direction, it shall be the duty of the Company
to discharge such liability.
27. Every contract entered into by the Company in relation to its
undertakings for any service, sale or supply, and in force immediately
before the appointed day, shall, on and from the expiry of one hundred
and eighty days from the date of publication of this Act in the Official
Gazette, cease to have effect unless such contract is, before the expiry
of the said period, ratified in writing by the State Government or, as the
case may be, the existing, or new, Government company, and in ratifying
such contract, the State Government or, as the case may be, the existing,
or new, Government company may make such alterations or modifications
therein as it may think fit:
Provided that the State Government or, as the case may be, the
existing, or new, Government company shall not omit to ratify a contract
and shall not make any alteration or modification therein—
(a) unless it is satisfied that such contract is unduly onerous or
has been entered into in bad faith or is detrimental to the
interest of the State Government or, as the case may be, such
Government company; and
(b) except after giving the parties to the contract a reasonable
opportunity of being heard and except after rccording in
writing its reasons for its refusal to ratify the contract or for
making any alteration or modification therein.
28. Any person, who—
(a) having in his possession, custody or control any property
forming part of the undertakings of the Company wrongfully
withholds such property from the State Government or the
existing, or new, Government company, as the case may be,
or any person or body of persons authorised by that
Government or existing, or new, Government company, or
306
The Britannia Engineering Company Limited (Titagarh Unit)
(Acquisition and Transfer of Undertakings) Act, 1984.
XLIII of 1984.]
(Chapter VII.—Miscellaneous.—Section 29.)
(b) wrongfully obtains possession of, or retains, any property
forming part of any undertaking of the Company or wilfully
withholds or fails to furnish to the State Government or, as
the case may be, the existing, or new, Government company
or any person or body of persons authorised by that
Government or Government Company, any document
relating to such undertaking which may be in his possession,
custody or control or fails to deliver to the State Government
or, as the case may be, the existing, or new, Government
company or any person or body of persons authorised by
that Government or existing, or new, Government company,
any assets, books of account, registers or other documents
in his possession, custody or control relating to the
undertakings of the Company, or
(c) wrongfully removes or destroys any property forming part
of the undertakings of the Company or prefers any claim
under this Act which he knows or has reason to believe to
be false or grossly inaccurate,
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.
29. (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, manager, secretary
or other officer shall be deemed to be guilty of that offence and shall
be liable to be proceeded against and punished accordingly.
307
Offence by
companies.
The Britannia Engineering Company Limited (Titagarh Unit)
(Acquisition and Transfer of Undertakings) Act, 1984.
[West Ben. Act
(Chapter VII. Miscellaneous.—Sections 30-32.)
Explanation.—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.
Protection of
action taken
in good
faith.
Delegation
of powers.
Power to
make rules.
30. No suit, prosecution or other legal proceeding shall lie against
the State Government or any officer of that Government or the Custodian
of the undertakings of the Company or the existing, or new, Government
company or any officer or other person authorised by that Government
or existing, or new, Government company for anything which is in good
faith done or intended to be done under this Act.
31. (1) The State Goverment may, by notification, direct that all or
any of the powers exercisable by it under this Act, other than the power
conferred by this section or section 32, or section 33, may also be
exercised by such peson 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 direction, control and supervision of the State Government.
32. (1) The State Government may, by notification, make rules for
carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the
foregoing power, such rules may provide for all or any of the following
matters, namely:—
(a) the time within which, and the manner in which, an intimation
referred to in sub-section (3) of section 4 shall be given;
(b) the form and the manner in which, and the conditions under
which, the Custodian or Custodians shall maintain accounts
as required by section 12;
(c) the manner in which moneys in any provident fund or other
fund referred to in section 14 shall be dealt with;
(d) any other mExcerpt shown. Open the full act in Lexace.