The Great Eastern Hotel ( Acquisition Of Undertaking ) Act, 1980

GOVERNMENT OF WEST BENGAL 
LEGISLATIVE DEPARTMENT 
West Bengal Act XXVII of 1980 
THE GREAT EASTERN HOTEL (ACQUISITION 
OF UNDERTAKING) ACT, 1980. 
[Passed by the West Bengal Legislature.] 
[Assent of the President was first published in the Calcutta Gazette, 
Extraordinary, of the 17th July, 1980.] 
[17th July, 1980.] 
An Act to provide for the acquisition of the undertaking of the Great 
Eastern Hotel Limited. 
WHEREAS it is expedient to provide for the acquisition of the undertaking 
of the Great Eastern Hotel Limited for the purpose of ensuring better 
facilities for board and lodging to the members of the public and formatters 
connected therewith or incidental thereto; 
It is hereby enacted in the Thirty-first Year of the Republic of India, by 
the Legislature of West Bengal, as follows:- 
1. This Act may be called the Great Eastern Hotel (Acquisition of Short title. 
Undertaking) Act, 1980. 
2. In this Act, unless the context otherwise requires,— 	 Definitions. 
(a) "appointed day" means the date on which this Act comes 
into force; 
(b) "company" means the Great Eastern Hotel Limited; 
(c) "Hotel Authority" means the Great Eastern Hotel Authority 
constituted under section 5; 
(d) - notification" means a notification published in the Official 
Gazette; 
(e) "prescribed" means prescribed by rules made under this Act; 
(0 "undertaking of the company" means the properties, both 
movable and immovable, cash balances, reserve funds and 
other assets of the company including lands, buildings, 
machineries, plants, furniture, equipments, stores and any 
other property which may be in the ownership, possession, 
custody or control of the company in relation to its undertaking 
immediately before the appointed day and all books of 
accounts, registers and other documents of whatever nature 
relating thereto. 
97 
The Great Eastern Hotel (Acquisition of Undertaking) Act, 1980. 
[West Ben. Act 
(Sections 3, 4.) 
Acquisition 
of the 
undertaking 
of the 
company. 
General 
effect of 
vesting. 
3. (1) On and from the appointed day, the undertaking of the 
company shall, by virtue of this Act, stand transferred to, and vest 
absolutely in, the State Government. 
(2) Upon the vesting of the undertaking of the company in the State 
Government under sub-section (1), the State Government shall, for efficient 
management and administration thereof, provide by notification for the 
transfer of the undertaking of the company to, and vesting thereof in, the 
Hotel Authority with effect from such date as may be specified in the 
notification. 
4. (1) The undertaking of a company which has vested in the State 
Government under sub-section (1) of section 3 shall, by force of such 
vesting, be freed and discharged from any trust, obligation, mortgage, 
charge, lien and all other incumbrances affecting it, and any attachment, 
injunction or decree or order of any court or tribunal restricting the use of 
the whole or any part of the undertaking of the company in any manner 
shall be deemed to have been withdrawn. 
(2) Any contract, whether express or implied, or other arrangement, 
whether under any statute or otherwise, in so far as it relates to the 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) Where any licence or other instrument in relation to the under-
taking of the company had been granted at any time before the appointed 
day to the company by the Central Government or the State Government 
or any other authority, the State Government shall, on and from the 
appointed day, be deemed to be substituted in .such licence or other 
instrument in place of the company referred to therein as if such licence or 
other instrument had been granted to it. 
(4) On and from the date of transfer of the undertaking of the company 
to, and vesting thereof in, the 'Hotel Authority, that Authority shall be 
deemed to be substituted in the licence or other instrument referred to in 
sub-section (3) in place of the State Government as if such licence or other 
instrument had been granted to the Hotel Authority. 
(5) Any liability incurred by the company (including the liability, if 
any, arising in respect of any loans or amounts advanced by the State 
Government to the company together with interest thereon) after the 
management of the undertaking of the company had been taken over by the 
State Government shall, on and from the appointed day, be the liability of 
the State Government and shall, on and from the date specified in the 
notification under sub-section (2) of section 3, stand transferred to, and 
shall vest in, the Hotel Authority. 
98 
The Great Eastern Hotel (Acquisition of Undertaking) Act, 1980. 
XXVII of 1980.] 
(Sections 5, 6.) 
(6) If, on the appointed day, any suit, appeal or other proceeding of 
whatever nature in relation to any matter or business in respect of the 
undertaking of the company, 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 undertaking 
of the company or of anything contained in this Act and the suit, appeal or 
other proceeding may be continued, proceeded with and enforced by or 
against the State Government and on and from the date specified in the 
notification under sub-section (2) of section 3, the Hotel Authority. 
(7) Any person in possession or custody or control of the whole or any 
part of the undertaking of the company on the date immediately before the 
appointed day shall, on the appointed day, deliver the possession of such 
undertaking of the company or part thereof to the State Government or to 
such person as may be specified by the State Government in this behalf. 
(8) The State Government may take, or cause to be taken, such steps 
as it considers necessary for securing the possession of the undertaking of 
the company which has vested in the State Government under sub-section 
( 1 ) of section 3. 
5. (1) As soon as may be after the coming into force of this Act, the 
State Government shall by notification constitute a Hotel Authority to be 
called the Great Eastern Hotel Authority. 
(2) The Hotel Authority shall be a body corporate having perpetual 
succession and a common seal, shall have power to acquire, hold and 
dispose of property, both movable and immovable, to enter into contracts 
and to do all other things necessary for the purposes of this Act and shall 
by its name sue and be sued. 
Hotel 
Authority. 
6. (1) The Hotel Authority shallconsi  
(a) a Chairman, 
(b) a Vice-Chairman, and 
(c) five other members, 
to be appointed by the State Government. 
st of the following members:— Composition 
of the Hotel 
Authority. 
(2) The Chairman, the Vice-Chairman and five other members shall 
be nominated by the State Government of whom:— 
(a) one shall be chosen from among persons associated with 
any of the banks specified in column 2 of the First Schedule 
22 of 1969. 	 to the Banking Companies (Acquisition and Transfer of 
Undertakings) Act, 1969, 
99 
The Great Eastern Hotel (Acquisition of Undertaking) Act, 1980. 
[West Ben. Act 
(Sections 6-9.) 
(b) one shall be chosen from among persons activity engaged in 
business as hoteliers, and 
(c) one shall be chosen from among persons connected with the 
tourism industry as travel agents or otherwise, 
(3) The Chairman shall exercise such powers and discharge such 
duties as may be prescribed. 
(4) The Vice-Chairman shall exercise such powers and discharge 
such duties as may be delegated to him by the Chairman and shall, during 
the absence of the Chairman, exercise the powers and discharge the duties 
of the Chairman. 
(5) The members referred to in sub-section (3) shall hold office for a 
term of two years computed from the date of their appointment by the State 
Government and shall receive such fees for attending the meetings of the 
Hotel Authority or of any committee thereof as may be prescribed. 
(6) No act or proceedings of the Hotel Authority or of any committee 
thereof shall be invalid or called in question by reason merely of any 
vacancy, initial or subsequent, in, or any defect in the constitution of, the 
Hotel Authority or any committee thereof. 
Meetings of 
the Hotel 
Authority. 
Power of the 
Hotel 
Authority to 
borrow and 
to dispose of 
immovable 
property. 
Fund of the 
Hotel 
Authority. 
7. The Hotel Authority shall meet at such place and at such time, 
and shall observe such rules or procedure in regard to the transaction of 
business at its meetings (including the quorum at its meetings) as may be 
prescribed. 
8. (1) The Hotel Authority may, with the previous approval of the 
State Government, borrow money for carrying out the purposes of this Act 
or for servicing any loan obtained by it. 
(2) The Hotel Authority shall not, without the prior approval of the 
State Government, dispose of any immovable property belonging to that 
Authority. 
9. There shall be a Fund for the Hotel Authority to which shall be 
credited— 
(a) loans and advances, if any, granted to the Hotel Authority by 
the State Government, 
(b) all monies borrowed by the Hotel Authority, 
(c) all receipts on account of rents, rates and other charges, 
(d) such other sums as may be received by the Hotel Authority 
from the State Government or any other authority or agency. 
100 
The Great Eastern Hotel (Acquisition of Undertaking) Act, 1980. 
XXVII of 1980.] 
(Sections 10-12.) 
10. (1) The Hotel Authority may create such posts and appoint such 
staff as it may think fit for the exercise of its powers and discharge of its 
duties under this Act: 
Provided that prior approval of the Government shall be necessary 
for— 
(i) creation of any post, the maximum of the pay scale of which 
exceeds Rs. 1500.00 per month and 
(ii) any revision of scales of pay and allowances. 
(2) Every expenditure incurred by the Hotel Authority, including the 
expenditure incurred by it for meeting the salaries and allowances of the 
staff employed by it, shall be defrayed out of the Fund of the Hotel 
Authority. 
(3) The Hotel Authority shall obtain prior approval of the Government 
before undertaking any project involving capital expenditure exceeding 
rupees five lakhs. 
11. Subject to such rules as may be made by the State Government in 
this behalf, the Hotel Authority shall be responsible for— 
(a) the general superintendence, drection, control and 
management of the affairs and business of the company, 
(b) the formulation, subject to the approval of the State 
Government, of plans for the development of the company 
and the execution of such plans. 
12. (1) The State Government shall deposit, in cash, in the Court of 
the Chief Judge of the City Civil Court, Calcutta, to the credit of the 
company, the sum of rupees seventy-three lakhs as compensation for the 
transfer to, and vesting in, the State Government, under sub-section (1) of 
section 3, of the undertaking of the company. 
(2) For the removal of doubts, it is hereby declared that the liabilities 
of the company, other than the liabilities referred to in sub-section (5) of 
section 4, in relation to its undertaking which has vested in the State 
Government under sub-section (1) of section 3 shall be met from the 
amount referred to in sub-section (1) of this section. 
(3) Every person having a claim against the company shall prefer such 
claim before the Chief Judge of the City Civil Court, Calcutta, within a 
period of 30 days from the date as the State Government may by 
notification specify: 
Provided that if the Chief Judge is satisfied that the claimant was 
prevented by sufficient cause from preferring the claim within the said 
period of 30 days, he may entertain the claim within a further period of 
30 days but not thereafter. 
Power to 
appoint 
staff. 
Functions of 
the Hotel 
Authority. 
Payment of 
compensa-
tion. 
101 
The Great Eastern Hotel (Acquisition of Undertaking) Act, 1980. 
[West Ben. Act 
(Section 13.) 
(4) In meeting under this section the liabilities of the company in 
relation to its undertaking which has vested in the State Government under 
sub-section (1) of section 3, the Court shall distribute the amount referred 
to in sub-section (1) of this section amongst the creditors of the company, 
whether secured or unsecured, in accordance with their rights and interests, 
and if there is any surplus left after such distribution, amongst the 
contributories of the.company in accordance with the rights and interests 
of such contributories. 
Penalty. 13. (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 any 
person authorised by that Government in this behalf, or 
(b) wrongfully obtains possession of, or retains, any property 
forming part of the undertaking of the company or wilfully 
withholds or fails to furnish to the State Government or any 
person specified by that Government any document relating 
to the undertaking of the company which may be in his 
possession, custody or control or failg to deliver to the State 
Government or any person specified by that Government any 
assets, books of account, registers or other documents in his 
custody relating to the undertaking of the company, or 
(c) wrongfully removes or destroys any property forming part of 
the undertaking of the company or prefers any claim under 
this Act which he knows or has reasons 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: 
Provided that the court trying any offence punishable under this Act 
may, at the time of convicting the accused person, order him to deliver or 
refund within such time as may be fixed by the court such property or any 
part thereof wrongfully withheld or wrongfully obtained or retained or 
such document wilfully withheld or not furnished or such assets, books of 
account, registers or other documents not delivered. 
(2) No court shall take cognizance of any offence punishable under 
this Act except with the previous sanction of the State Government or of 
an officer authorised by that Government in this behalf. 
102 
The Great Eastern Hotel (Acquisition of Undertaking) Act, 1980. 
XXVII of 1980.] 
(Sections 14-16.) 
14. (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. 
Explanation.—For the purposes of this section,— 
(a) "company" means any body corporate and includes a firm or 
other association of individulas; and 
(b) "director", in relation to a firm, means a partner in the firm. 
Offences by 
companies. 
15. No suit, prosecution or other legal proceeding shall lie against Protection of 
the State Government or any officer or other employee serving in action taken 
in good 
connection with the affairs of the undertaking of the company for faith: 
anything which is in good faith done or intended to be done under this 
Act. 
16. (1) Every person employed in connection with the affairs 
of the undertaking of the company, who has been in such employment 
immediately before the appointed day, shall continue to hold office after 
the coming into force of this Act with the same rights and privileges 
as to pension, gratuity and other matters to which he was entitled 
immediately before the appointed day and shall, on and from the date 
specified in the notification under sub-section (2) of section 3, become an 
employee of the Hotel Authority and shall hold office under the Hotel 
Authority on the same terms and conditions as before and shall continue 
to do so unless and until his employment under the Hotel Authority is 
duly terminated or until his remuneration, terms and conditions of 
employment are duly altered by the Hotel Authority. 
Employees 
to continue 
in service. 
103 
The Great Eastern Hotel (Acquisition of Undertaking) Act, 1980. 
[West Ben. Act XXVII of 1980.] 
Act to 
ovenide 
other laws. 
Delegation 
of powers. 
Power to 
make rules. 
Power to 
remove 
difficulties. 
(Sections 17-20.) 
(2) Notwithstanding anything contained in the Industrial Disputes 14 of 1947. 
Act, 1947, or in any other law in force for the time being, the transfer of 
services of any officer or other employee from the company to the Hotel 
Authority or to any other post shall not entitle such officer or other 
employee to any compensation under this Act or any other law in force for 
the time being and no such claim shall be entertained by any court, tribunal 
or other authority. 
17. The provisions of this Act shall have effect notwithstanding 
anything inconsistent therewith contained in any other law in force for 
the time being or in any instrument having effect by virtue of any law 
other than this Act or in any judgement, decree or order of any court, 
tribunal or other authority. 
18. (1) The State Government may by notification direct that all or 
any of the powers exercisable by it under this Act, other than the power to 
make rules, may also be exercised by such person or persons as may be 
specified in the notification. 
(2) Whenever any delegation of power is made under sub-section (1), 
the person or persons to whom the power has been delegated shall act 
under the direction, control and supervision of the State Government. 
19. (1) The State Government may by notification make rules for 
carrying out the purposes 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 matters 
which may be, or are required to be, prescribed. 
20. 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 date of coming into force of this Act. 
104 

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