The Eastern Distilleries ( Private ) Limited ( Acquisition And Transfer Of Undertakings ) Act, 1983

GOVERNMENT OF WEST BENGAL 
LEGISLATIVE DEPARTMENT 
West Bengal Act XLIV of 1983 
THE EASTERN DISTILLERIES (PRIVATE) 
LIMITED (ACQUISITION AND TRANSFER 
OF UNDERTAKINGS) ACT, 1983. 
[Passed by the West Bengal Legislature.] 
[Assent of the President was first published in the Calcutta Gazette, 
Extraordinary, of the 23rd March, 1984.] 
[23rd March, 1984.] 
An Act to provide for the acquisition and transfer, in the public interest, 
of the undertakings of the Eastern Distilleries (Private) Limited, and 
for matters connected therewith or incidental thereto. 
WHEREAS the Eastern Distilleries (Private) Limited had been engaged 
in the manufacture and production of industrial alcohol and spirit which 
are essential to the needs of the general public; 
AND WHEREAS the management of the undertakings of the Eastern 
Distilleries (Private) Limited had been conducted in a manner highly 
detrimental to the public interest; 
AND WHEREAS the management of the undertakings of the Eastern 
Distilleries (Private) Limited was taken over by the Central Government 
65 of 1951. 	 under section 18A of the Industries (Development and Regulation) 
Act, 1951; 
AND WHEREAS for the purpose of reconstructing and rehabilitating 
the undertakings of the Eastern Distilleries (Private) Limited so as to 
subserve the interests of the general public by the augmentation of 
production and distribution of industrial alcohol and spirit which are 
essential to the needs of the general public, it is necessary to acquie 
the undertakings of the Company; 
It is hereby enacted in the Thirty-fourth Year of the Republic of India, 
by the Legislature of West Bengal, as follows:— 
CHAPTER I 
Preliminary 
1. (1) This Act may be called the Eastern Distilleries (Private) 
Limited (Acquisition and Transfer of Undertakings) Act, 1983. 
(2) It shall come into force on such date as the State Government 
may, by notification, appoint. 
Short title 
and 
commence- 
ment. 
291 
The Eastern Distilleries (Private) Limited (Acquisition and 
Transfer of Undertakings) Act, 1983. 
[West Ben. Act 
(Chapter I.—Preliminary.—Section 2.—Chapter 11.—Acquisition and 
transfer of the undertakings of the Company. Section 3.) 
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 the Eastern Distilleries (Private) Limited, 
being a company as defined in the Companies Act, 1956, and 
having its registered office at 34, B. L. Saha Road, Tollygunge, 
Calcutta-700 053; 
(d) "date of taking over of management of the undertakings of 
the Company" means the llth day of Octob, 1974; 
(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. 
1 of 1956. 
Transfer to, 
and vesting 
in, State 
Government 
of the under-
takings of 
the 
Company. 
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. 
292 
The Eastern Distilleries (Private) Limited (Acquisition and 
Transfer of Undertakings) Act, 1983. 
XLIV of 1983.] 
(Chapter 1L—Acquisition and transfer of the undertakings 
of the Company.—Section 4.) 
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, 
vehicles, 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, injunction, 
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 poperty 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, lien or other 
interests 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 accordance 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, 
General 
effect of 
vesting. 
293 
The Eastern Distilleries (Private) Limited (Acquisition and 
Transfer of Undertakings) Act, 1983. 
[West Ben. Act 
Central 
Government 
or State 
Government 
or existing 
or new 
Government 
company not 
to be liable 
for certain 
prior 
liabilities. 
(Chapter IL—Acquisition and transfer of the undertakings 
of the Company.—Section 5.) 
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 period for which the Company 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, 
(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, 
294 
The Eastern Distilleries (Private) Limited (Acquisition and 
Transfer of Undertakings) Act, 1983. 
XLIV of 1983.] 
(Chapter 1L—Acquisition and transfer of the undertakings 
of the Company.—Section 5.) 
(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 manage-
ment 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 Central 
Government, or the State Government, or the Government company 
as aforesaid and shall be discharged by the Central Government or 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 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 
295 
The Eastern Distilleries (Private) Limited (Acquisition and 
Transfer of Undertakings) Act, 1983. 
[West Ben. Act 
Power of 
State 
Government 
to direct 
vesting of 
the 
undertakings 
of the 
Company in 
an existing 
Government 
company. 
Vesting of 
the under-
takings of 
the Com-
pany from 
an existing 
Government 
company to 
a new 
Government 
company. 
(Chapter IL—Acquisition and transfer of the undertakings 
of the Company.—Sections 6, 7.) 
Government or the State Government or, where the 
undertakings of the Company are directed under section 6 to 
vest in an existing Government company orbecome transferred 
by virtue of the provisions of section 7 to a new Government 
company, against such 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 Government company, be 
deemed to be, the owner in relation to such undertakings 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. 
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. 
296 
The Eastern Distilleries (Private) Limited (Acquisition and 
Transfer of Undertakings) Act, 1983. 
XLIV of 1983.] 
(Chapter III.—Payment of amounts.—Sections 8, 9.) 
(2) Where the right, title and interest of the existing Government 
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 Govern- 
ment company. 
CHAPTER III 
Payment of amounts 
8. For the transfer to, and vesting in, the State Government, under Payment of 
section 3, of the undertakings of the Company and the right, title and amount. 
interest of the Company in relation to its undertakings, there shall be given 
by the State Government to the Company, in cash, and in the manner 
specified in Chapter VI, an amount of rupees seven lakhs and sixty-two 
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 three thousand as one time lump sum 
payment. 
(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) 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 rights and interests of the creditors of the 
Company. 
Payment of 
further 
amount. 
297 
The Eastern Distilleries (Private) Limited (Acquisition and 
Transfer of Undertakings) Act, 1983. 
[West Ben. Act 
(Chapter IV.—Management, etc., of the undertakings of 
the Company.—Sections 10, 11.) 
Manage-
ment, etc., of 
the 
undertakings 
of the 
Company. 
Duty of 
persons in 
charge of 
management 
of the 
undertakings 
of the 
Company to 
deliver, all 
assets etc. 
CHAPTER IV 
Management, 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), 
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 the 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 Govern-
ment 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. 
298 
The Eastern Distilleries (Private) Limited (Acquisition and 
Transfer of Undertakings) Act, 1983. 
XLIV of 1983.] 
(Chapter IV.—Management, etc., of the undertakings of 
the Company.—Section 12.) 
(2) The State Government may issue such directions as it may deem 
desirable in the circumstances of the case to the existing, or new, Govern-
ment 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, 
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 Company shall, within such period as the State Government 
may allow in this behalf, furnish to that Government a complete inven-
tory 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 Accounts 
Company shall maintain an account of the undertakings of the Company and audit. 
in such form and under such conditions as may be prescribed and the 
of 1956. 	 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. 
299 
The Eastern Distilleries (Private) Limited (Acquisition and 
Transfer of Undertakings) Act, 1983. 
[West Ben. Act 
Employment 
of certain 
employees 
to continue. 
Provident 
fund and 
other funds. 
(Chapter V.—Provisions relating to the employees of 
the Company.—Sections 13, 14.) 
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 Govern-
ment 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, 
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 
of service are duly altered by the State Government or the existing, or new, 
Government company, as the case may be. 
(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 moneys 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. 
14 of 1947. 
300 
The Eastern Distilleries (Private) Limited (Acquisition and 
Transfer of Undertakings) Act, 1983. 
XLIV of 1983.] 
(Chapter VL—Commissioner of Payments.—Sections 15, 16.) 
(2) The moneys 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. 
(2) The State Government may appoint such other pesons 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) The State Government shall, within thirty days from the 
specified date, pay, in cash, to the Commissioner, for payment to the 
Company,— 
(a) an amount equal to the amount specified in section 8, and 
(b) an amount equal to the amounts payable to the Company 
under section 9. 
(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. 
Appoint-
ment of 
Commis-
sioner of 
Payments. 
Payment by 
State 
Government 
to the 
Commis-
sioner. 
301 
The Eastern Distilleries (Private) Limited (Acquisition and 
Transfer of Undertakings) Act, 1983. 
[West Ben. Act 
Certain 
powers of 
State 
Government 
or existing, 
or new, 
Government 
company. 
(Chapter VI.—Commissioner of Payments.—Sections 17-19.) 
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. 
(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. 
Claims to be 	 18. Every person having a claim against the Company shall prefer 
made the 
Commis- 	 such claim before the Commissioner within thirty days from the specified 
sioner. 	 date: 
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 matters specified in the Schedule 
shall have priorities in accordance with the following principles:— 
(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, 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. 
Priority of 
claims. 
302 
The Eastern Distilleries (Private) Limited (Acquisition and 
Transfer of Undertakings) Act, 1983. 
XLIV of 1983.] 
(Chapter Ill.—Commissioner of Payments.—Sections 20, 21.) 
20. (1) On receipt of the claims made under section 18, the 
Commissioner shall arrage the claims in the order of priorities specified 
in the Schedule and examine the same in accordance with such order 
of priorities. 
(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 be 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 Commissioner 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 
5 of 1908. 
	
	 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. 
Examination 
of claims. 
Admission 
or rejection 
of claims. 
303 
The Eastern Distilleries (Private) Limited (Acquisition and 
Transfer of Undertakings) Act, 1983. 
[West Ben. Act 
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. 
(Chapter VI.—Commissioner of Payments.—Sections 22-24.) 
(6) Any investigation before the Commissioner shall be deemed to be 
a judicial proceeding within the meaning of sections 193 and 228 of the 
Indian 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. 
(7) A claimant who is dissatisfied with the decision of the Commis-
sioner 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 under-
takings of the Company, there is a balance left after meeting the liabilities 
in accordance with the priorities specified in the Schedule, the Commis-
sioner 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 un-
disbursed 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 pay-
ment 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. 
45 of 1860. 
2 of 1974. 
304 
The Eastern Distilleries (Private) Limited (Acquisition and 
Transfer of Undertakings) Act, 1983. 
XLIV of 1983.] 
(Chapter VII. Miscellaneous.—Sections 25-27.) 
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 of any court, tribunal or other 
authority. 
26. 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 modification 
therein as it may think fit: 
Act to have 
overriding 
effect. 
Contracts to 
cease to 
have effect 
unless 
ratified by 
the State 
Government 
or existing, 
or new, 
Government 
company. 
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 recording in 
witing its reasons for its refusal to ratify the contract or for 
making any alteration or modification therein. 
27. Any person, who— 	 Penalties. 
(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 
Governemnt or existing, or new, Government company, or 
305 
The Eastern Distilleries (Private) Limited (Acquisition and 
Transfer of Undertakings) Act, 1983. 
[West Ben. Act 
(Chapter VII.—Miscellaneous.—Section 28.) 
(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 exisiing, 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 exisitng, 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. 
Offences by 
companies. 28. (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 individuals; and 
(b) "director", in relation to a firm, means a partner in the firm. 
306 
The Eastern Distilleries (Private) Limited (Acquisition and 
Transfer of Undertakings) Act, 1983. 
XLIV of 1983.] 
(Chapter VII.—Miscellaneous.—Sections 30, 31.) 
29. 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. 
30. (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 conferred by this section or section 31 or section 32, 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 to whom such power has been delegated shall act under the 
direction, control and supervision of the State Government. 
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 matter which is required to be, or may be, 
prescribed. 
(3) Every rule made by the State Government under this Act shall be 
laid, as soon as may be after it is made, before the State Legislature, while 
it is in session, for a total period of thirty days which may be comprised in 
one session or in two or more successive sessions, and if, before the expiry 
of the session immediately following the session or the successive sessions 
aforesaid, the State Legislature agrees in making any modifications in the 
rules or the State Legislature agrees that the rule should not be made, the 
rule shall thereafter have effect only in such modified from or be of 
no effect, as the case may be; so, however, that any such modification 
or annulment shall be without prejudice to the validity of anything 
previously done under that rule. 
Protection of 
section taken 
in good 
faith. 
Delegation 
of powers. 
31. (1) The State Government may, by notification, make rules Power to 
make rules. 
307 
Power to 
remove 
difficulties. 
The Eastern Distilleries (Private) Limited (Acquisition and 
Transfer of Undertakings) Act, 1983. 
[West Ben. Act XLIV of 1983.] 
(Chapter VII.—Miscellaneous.—Section 32.—The Schedule.) 
32. 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 publication of this Act in the Official 
Gazette. 
THE SCHEDULE 
(See sections 19, 20, 21 and 23.) 
Order of priorities for the discharge of the liabilities of 
the Company 
Pre-take over period 
Category I— 
Employees' dues on account of unpaid salaries, wages, provident 
fund, employees' state insurance contribution 

Excerpt shown. Open the full act in Lexace.

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