LexThe Calcutta Tramways Act, 1951
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West Bengal Act XXV of 1951
THE CALCUTTA TRAMWAYS ACT, 1951.
[Passed by the West Bengal Legislature.]
[Assent of the Governor was first published in the Calcutta Gazette, Extraordinary, of the 18th October, 1951.]
An Act to empower the Government of West Bengal to
acquire the undertaking of the Calcutta Tramways
Company, Limited.
WHEREAS an agreement, a copy whereof is set forth in
the First Schedule to this Act was made the S'0th day of
August, 1951, between the Governor of the State of
West Bengal of the one part and the Calcutta Tramways
Company, Limited, of the other part;
AND WHEREAS it is declared in the said agreement that
the same shall be subject to confirmation and •being given
effect to by an Act of the Legislature of West Bengal to be
thereafter passed for the purpose;
AND WHEREAS it is expedient that the same should be
confirmed and given effect to and the law relating to the
undertaking of the Calcutta Tramways Company, Limited,
should be amended;
It is hereby enacted as follows :-
1. This Act may be called the Calcutta Tramways
Act, 1951.
oefinitions. 2. In this Act, unless there is anything repugnant in
the subject or context,—
(a) "the Government" means the Government of West
Bengal;
(b) "the Company" means the Calcutta Tramways
Company, Limited;
(c) "the transfer agreement" means the agreement made
the 30th day of August, 1951, between the
Governor of the State of West Bengal of the one
part and the Company of the other part, a copy
whereof is set forth in the First Schedule to this
Act;
(d) "the undertaking" means the undertaking of the
Company.
mfirma-
311 of
;reernent
tween
Dvern-
ent and
nnpany.
3. The transfer agreement is hereby confirmed and
made binding on the parties thereto and the several provisions
thereof shall have effect as if the same had been enacted in
this Act.
The Calcutta Tramways Act, 1951.
[West Ben. AO
Transfer
of powers.
(Sections 4-7.)
4. Notwithstanding anything to the contrary in any
other law, all the powers and duties of the Corporation of
Calcutta, the Commissioners of the Howrah Municipality, the
Commissioners of the South Suburban Municipality and the
Commissioners for the New Howrah Bridge with respect to
the construction, maintenance, use, leasing of or otherwise
dealing with tramways are transferred to and vested in the Government.
Amend-
ment of
agree-
ments.
Repeals.
New
Howrah
Bridge
and its
approaches
and the
Esplanade
to be
included
in Calcutta.
5. (1) The several agreements particulars whereof are
set out in the Second Schedule to this Act shall have effect
-as if the Government were parties thereto in lieu of the
respective bodies and persons set out in column 2 of the said
Schedule and any reference in any such agreement to any of
such bodies or persons shall unless the subject-matter or the
context otherwise requires be deemed to be a reference to the Government :
Provided that any sums payable under any such agreement
to any of such bodies or persons shall continue to be payable
as if this Act had not been passed.
(2) Any provision in any of the agreements referred to in
the preceding sub-section of this section whereby any body
or Aersons may be entitled to purchase the whole or any part
of the undertaking is hereby annulled and the Government
in its or their place and stead shall be entitled to purchase
the undertaking on the terms set out in the transfer agreement.
6. The provisions of the Calcutta Tramways Act, 1880,
the Bengal Tramways Act, 1883 and the Calcutta Tramways
(Howrah) Order, 1905 and of any other Act or Order relating
to the purchase of the undertaking or any part thereof
which is purchaseable by any body or persons are hereby
repealed in so far as such provisions are inconsistent with the
provisions of this Act relative to the transfer of the
undertaking to the Government.
Ben.
of 18•
Ben. ,
III of
1883.
7. Notwithstanding anything contained in the Calcutta
Municipal Act, 1923, the Howrah Bridge Act, 1926 or in any
other Act, the New Howrah Bridge and its approaches,
vested in the Commissioners for the New Howrah Bridge and
the Esplanade (including the area commonly known as the
Maidan), shall be deemed to be included in Calcutta as defined in clause (11) of section 3 of the Calcutta Municipal Act, 1923 :
Provided that save as aforesaid, nothing in this section
shall affect the provisions of the Howrah Bridge Act, 1926,
and save as may hereafter be provided by or under any law,
the provisions of the Calcutta Municipal Act, 1923, shall not
apply to the area referred to above.
Ben.
III of
1923.
Ben.
IV of
1926.
The Calcutta Tramways Act, 1951. 3
XXV of 1951.]
(Thc First Schedule.)
THE FIRST SCHEDULE.
[See section 2(c).]
(Transfer Agreement.)
ARTICLES OF AGREEMENT made this 30th day Of
August, One thousand nine hundred and fifty-one
BETWEEN THE GOVERNOR OF THE STATE OF WEST BENGAL Of
the one part and THE CALCUTTA TRAMWAYS COMPANY,
LIMITED, a Company incorporated under the English
Companies Acts and having its registered office at 1, Queen
Victoria Street in the City of London (hereinafter called "the
Company") of the other part.
WHEREAS by virtue of the Calcutta Tramways Act, 1880,
the Bengal Tramways Act, 1883, the Calcutta Tramways
Act, 1894, and the Calcutta Tramways (Electric Traction)
Act, 1900, and the Agreements particulars whereof are set
out in the Schedule hereto and all other powers therein
enabling it, th Coany is empowered to make and maintain
tramways within t
m
he
p municipal limits of Calcutta and its
suburbs;
AND WHEREAS in pursuance of the powers aforesaid the
Company has constructed and maintained various tramways;
AND WHEREAS the Company is maintaining, managing and
running along the said tramways a service for the public
desiring to use the same;
AND WHEREAS the Government of West Bengal (herein-
after referred to as "the Government") is desirous, in the
interest of improving the said service for the greater conve-
nience of the public, to co-operate with the Company in
running the said service;
AND WHEREAS the Government is desirous of ultimately
owning, possessing, managing and running the said tramways
undertaking as a Government service 'for the benefit of the
public;
AND WHEREAS it is necessary for the better implementa-
tion of this Agreement that an Act should be passed by the
appropriate legislature ratifying and giving effect to the
same.
Witnesseth And it is hereby agreed as follows:-
1. In this Agreement except so far as the contrary is
expressly provided or the context otherwise requires, the
following words and expressions have the meanings hereby
respectively assigned to them, that is to say :—
"Accounting Year" means the period from the first day
of January to the thirty-first day of December next
ensuing;
4 The Calcutta Tramways Act, 1951.
[West Ben. Act
(The First Schedule.)
"Physical assets" mean the lands, buildings, structures,
works, machinery, plant, rolling stock, lines, mains, motors,
dynamos, switchboards, apparatus, appliances, tool, imple-
ments, motor trucks and other like property of the Company
from time to time comprised in the undertaking and in use or available for use;
"Purchase Date" means the first day of January, 1972.
"The undertaking" means the tramway undertaking of
the Company as authorised by the Acts Agreements and powers hereinbefore referred to.
2. (1) The Company shall continue to carry on the
undertaking until the purchase date in accordance with this
Agreement and any statutory powers granted or to be granted
to or empowering the Company in that behalf.
(2) Except as otherwise specifically provided in this
Agreement nothing herein shall be deemed to restrict the
financiaj and administrative powers of the Company or to
restrict the right of the Company to carry on its undertaking
until the purchase date in the ordinary course of business.
(3) The Company shall exercise due care and economy in
the management and administration of the undertaking and
shall take all such steps as shall be reasonably practicable to
work the undertaking to the best advantage of the parties to this Agreement.
(4) The Company shall maintain in proper condition all
physical assets comprised in the undertaking to the reason-
able satisfaction of the Government and will permit an
authorised representative of the Government on producing his
authority once in every year to enter upon the premises of
the Company, where any such assets are in existence, to inspect such assets.
3. (1) There shall be established in Calcutta an
Advisory Committee consisting of the following persons :—
(a) A Chairman appointed by the Government in
consultation with the Company.
(b) Two members appointed by the Government.
(c) Two members appointed by the Company.
(2) The Advisory Committee shall consider any matter
affecting any proposed extensions of the undertaking,
alterations of routes where these involve a realignment of
tracks, questions involving labour disputes, the fare
schedule of the services carried on by the Company and
capital expenditure and communicate their recommendation
to the Government and the Company.
The Calcutta Tramways Act, 1951. 5
XXV of 1951.]
(The First Schedule.)
(3) The members of the Committee established under
this clause shall hold and vacate their office in accordance
with the terms of their respective appointments and shall on
ceasing to be members of the Committee be eligible for
re-appointment provided that any member may at any time
by notice in writing served on the Government and on the
Company resign his office.
(4) Upon the death or resignation of a member of the
Committee or a member becoming incapable to act a new
member shall be appointed in the place of the member so
dying, resigning or becoming incapable.
4. (1) The Company shall apply its revenues in the
manner following, that is to say:—
(a) Firstly, paying all expenses of managing, maintain-
ing and working the undertaking, including
debenture interest;
(b) Secondly, paying all Indian and -United Kingdom
taxes payable by the Company;
1c) Thirdly, setting aside in each accounting year in a
Renewals and Replacements Reserve Account
the sum of Eighty thousand pounds sterling or
such greater sum as the Directors of the Company
for the time being may in consultation with the
Government consider necessary in the light Of
experience and in view of the expansion of the
undertaking or increase in prices;
(d) Fourthly, setting aside in each accounting year in
a fund (hereinafter called "the Shareholders'
Account") the following sums :—
(i) £87,457 together with
(ii) four per cent. upon any additional outside share
capital raised by the Company with the consent
of the Government after the date of this Agree-
ment.
(e) Fifthly, accumulating any surplus in a special
reserve account the balance of which (after
providing for losses, if any) will eventually
accrue to the benefit of the Government. (Before
such transfer however, of a loss against the
credit standing in the Special Reserve Account,
the Government should be consulted, the final
decision on such matter nevertheless being
reserved to the Company).
(2) If in any accounting year the revenues arising from
the undertaking are insufficient to provide for all the
matters enumerated in the preceding sub-clause of this
clause, such revenues shall be so applied in the priority
there set out.
6
The Calcutta Tramways Act, 1951.
[West Ben. Act
(The First Schedule.)
5. (1) The Accounts of the Company for the year
ending the thirty-first day of December One thousand nine
hundred and fifty-one and for each subsequent year shall be made out in conformity with this Agreement.
(2) The dividends to Shareholders in respect of the year
ending the thirty-first day of December One thousand nine
hundred and fifty-one and each subsequent year shall be paid out of the Shareholders' Account.
(3) Any sum for the servicing of the Debenture-stock of
the Company, that is to say, any sum set apart for, or used
in, the repayment of the Debenture-stock of the Company
shall, in the year ending the thirty-first day of December
One thousand nine hundred and fifty-one and in each subse-
quent year, be paid out of the Shareholders' Account and be a charge on the same.
6. (1) The Company shall not raise additional outside
share or loan capital without the consent in writing of the
Government except in the case of temporary advances from
the Company's Bankers in the ordinary course of business. (2) The Company shall give notice in writing to the
Government of its intention of incurring any capital
expenditure in respect of expansions of the undertaking and
if the Government shall within one month from the date of
receiving any such notice intimate the Company in writing
of its objection to such expenditure, the Company shall not incur such expenditure.
7. (1) Not later than twelve months before the purchase
date the Government may serve upon the Company notice
in writing (hereinafter called "a purchase notice") of its
intention to acquire the undertaking on the purchase date. (2) In the event of the Government serving a purchase
notice the following provisions shall have effect, that is to say : —
(a) The Government shall subject to the exchange
regulations and other relevant laws prevailing at the time
in the United Kingdom and India pay to the Company in
sterling in London not less than thirty days before the purchase date :
(i) the sum of £3,750,000;
(ii) a sum equal to the amount of any additional outside
capital brought into the undertaking with the
consent of Government under Clause 6(1) of the
Agreement during the period between the date
of this Agreement and the first day of January
One thousand nine hundred and seventy-one. (b) Subject to payment being made in terms of sub-clause (a) above, all the right, title and interest of the
Company of and in the undertaking shall on the purchase
date become vested in the Government free from all
mortgages, charges and liens created by the issue of
The Calcutta Trculaways Act, 1951. 7
XXV of 1951.]
(The First Schedule.)
Debenture or Debenture Stocks of the Company. Provided
that the Company shall be entitled to retain all statutory
books of account and other documents normally kept out-
side India but shall afford every facility to the Govern-
ment to have inspection of same or take copies of or extracts
therefrom.
(c) The Government shall also pay to the Company in
sterling in London, the amount of the balance (if any) of
the Shareholders' Account at the purchase date within one
month after a certificate by the Company's Auditors of the
amount thereof has been served on the Government.
(d) No further sum than is provided for in this clause
shall be payable to the Company in respect of the transfer
of the undertaking to the Government.
(3) From and after such vesting of the undertaking in
the Government all powers, rights, obligations and
liabilities excepting the liabilities in respect of the Share
and Loans Capital of the Company shall be exercisable by
and be binding on the Government in substitution for the
Company and shall cease to be exercisable by or binding on
the Company;
Provided that no contract entered into by the Company
after the date of this Agreement and extending for more
than one year beyond the purchase date shall be binding on
the Government unless it has been previously approved by
the Government.
8. If the Government does not serve a purchase notice
in accordance with the last preceding clause, then all the
terms and conditions of this Agreement shall continue in
force subject to the following modifications:—
(a) (i) The Government shall pay to the Company in
sterling in London such sums as may from time to time be
necessary to redeem the second Debenture Stocks of the
Company on their due dates;
(ii) After the second Debenture Stocks have been
redeemed as aforesaid the Company shall from time to time
until the undertaking is vested in the Government pay to
the Government sums equal to the interest which would have
been payable on such Debenture Stocks had the same not
been redeemed.
(b) (i) The Government shall on giving two years' notice
to the Company be entitled to acquire the undertaking on
the 1st day of January of any subsequent year and such
date shall be the purchase date.
(ii) In the event of the undertaking being acquired in
pursuance of a notice under this Clause there shall be
deducted from the sum payable under Clause 7(2)(a)(i)
hereof any sums which may have been paid by the Govern-
ment in pursuance of paragraph (a)(i) of this Clause.
8 The Calcutta Tramways Act, 1951.
[West Ben. Act
(The First Schedule.)
9. This Agreement shall be binding subject to an Act
of the Legislature of West Bengal confirming it by the thirty-
first day of December One thousand nine hundred and fifty-
one and making the same binding on the parties hereto and
on all other persons, bodies and authorities having any rights
or interest in the undertaking whether by statute, order,
agreement or otherwise.
10. Where any notice or other document is required by
this Agreement to be served, then if it is to be served on
the Company it may be served by delivering it to the Agent
of the Company in Calcutta or by sending it in a prepaid
registered letter addressed to him at his office in Calcutta
and if it is to be served on the Government it may be served
by sending it in a prepaid registered letter addressed to
the Chief Secretary to the Government at Writers' Build-
ings, Calcutta.
11. If any dispute or difference shall arise with
reference to the construction of this Agreement or any
clause herein or in respect of any act, deed, matter or thing
done or omitted to be done by any of the parties to this
Agreement, the decision whereof is not hereby otherwise
provided for, the same shall be referred to an Arbitrator if
agreed upon between the parties hereto or in default of
such Agreement to two Arbitrators, one to be appointed by
each party, the proceedings by the said Arbitrator or
Arbitrators being held in Calcutta and the decision or
award of the said Arbitrator or Arbitrators or Umpire as
the case may be shall be final and binding on the parties and
the provisions of the Arbitration Act, 1940 shall apply.
THE SCHEDULE above referred to.—
Date.
1
2nd October 1879
Grantors.
2
.. Corporation of the Town
Calcutta.
Grantees.
3
of Dillwyn Parrish, Alfred Parrish
and Robinson Souttar.
22nd November 1879 .. Municipal Commissioners of the
Suburbs of Calcutta.
2nd September 1893 .. Corporation of Calcutta
9th December 1899 .. Corporation of Calcutta
9th May 1905 .. Municipal Commissioners of
Howrah.
5th April 1908 Municipal Commissioners of the
South Suburban Municipality.
17th January 1938 Commissioners for the New
Howrah Bridge.
Dillwyn Parrish, Alfred Parrish
and Robinson Souttar.
Calcutta Tramways Company,
Limited.
Calcutta Tramways Company,
Limited.
Calcutta Tramways Company,
Limited.
Calcutta Tramways Company,
Limited.
Calcutta Tramways Company,
Limited.
The Calcutta Tramways Act, 1951. 9
XXV of 1951.]
(The Second Schedule.)
IN WITNESS whereof the parties hereto have duly executed these presents the day and
year first above written.
SIGNED for and on behalf of the Governor of the
State of West Bengal by 13inaybhusan Das Gupta,
Secretary, Finance Department, Government of West
Bengal, in the presence of
M. M. Sen,
Deputy Secretary,
Finance Department,
Government of West Bengal.
SIGNED and DELIVERED for and on behalf of the
abovenamed The Calcutta Tramways Company, Limited,
by its Constituted Attorney
A. C. T. Blease
o presence of
V. A. Smith,
Chief Accountant,
The Calcutta Tramways Co., Ltd.
For and on behalf of the
Governor of the State of West
Bengal.
B. Das Gupta,
Secretary, Finance
Department,
Government of West
Bengal.
For THE CALCUTTA
TRAMWAYS CO., LTD.
A. C. T. Blease,
Deputy Agent and
Constituted Attorney.
Date.
THE SECOND SCHEDULE.
[See section 5(1).]
Agreements.
Grantors. Grantees.
1 3
)th May, 1905
ith April, 1908
[7th January, 1938
WBGP-51/2-7458A-5M
Municipal Commissioners of the
South Suburban Municipality.
Commissioners for the New
Howrah Bridge.
Dillwyn Parrish, Alfred Parrish
and Robinson Souttar.
Dillwyn Parrish, Alfred Parrish
and Robinson Souttar.
Calcutta Tramways Company,
Limited.
Calcutta Tramways Company,
Limited.
Calcutta Tramways Company,
Limited.
Calcutta Tramways Company,
Limited.
2nd October, 1879 .. Corporation of the Town of
Calcutta.
22nd November, 1879 .. Municipal Commissioners of the
Suburbs of Calcutta.
2nd September, 1893 .. Corporation of Calcutta
9th December, 1899 .. Corporation of Calcutta
.. Municipal Commissioners of Calcutta Tramways Company,
Howrah. Limited.