The Mackintosh Burn ( Taking Over Of Management ) Act, 1976

GOVERNMENT OF WEST BENGAL 
LEGISLATIVE DEPARTMENT 
West Bengal Act XLI of 1976 
THE MACKINTOSH BURN (TAKING OVER OF 
MANAGEMENT) ACT, 1976. 
[Passed by the West Bengal Legislature.] 
[Assent of the President was first published in the Calcutta 
Gazette, Extraordinary, of the 7th September, 1976.] 
[7th September, 1976.] 
An Act to provide for the taking over of the management of the 
undertaking of the Mackintosh Burn Limited for a limited 
period in the public interest and in order to secure the proper 
management thereof. 
WIIEREAS it is expedient to provide for the taking over of the 
management of the undertaking of the Mackintosh Burn Limited for a 
limited period in the public interest and in order to secure the proper 
management thereof; 
It is hereby enacted in the Twenty-seventh Year of the Republic of 
India, by the Legislature of West Bengal, as follows:- 
1. This Act may be called the Mackintosh Burn (Taking over of Short title. 
Management) Act, 1976. 
2. In this Act, unless the context otherwise requires,— 
(a) "appointed day" means the date of publication of the order 
made under section 3; 
(b) "company" means the Mackintosh Burn Limited; 
(c) "prescribed" means prescribed by rules made under this Act; 
(d) "undertaking of the company" means the properties of the 
company, 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 immediately before the 
commencement of this Act. 
Definitions. 
3. (1) The State Government may, by an order published in the 
Official Gazette, take over the management of the undertaking of the 
company and appoint a person or body of persons for managing the 
undertaking of the company in accordance with the provisions of this 
Act and the rules made thereunder. 
213 
Taking over 
of manage-
ment of the 
undertaking 
of the 
company. 
The Mackintosh Burn (Taking over of Management) Act, 1976. 
[West Ben. Act 
(Sections 4-6.) 
(2) An order made under sub-section (1) shall remain in force for a 
period of five years from the date of its publication in the Official 
Gazette: 
Provided that the State Government may extend the period by one 
year at a time so, however, that the total period of such extension shall 
not exceed five years. 
Effect of an 
order made 
under 
section 3. 
4. With effect from the appointed day— 
(i) the person or body of persons appointed under section 3 
shall have all the powers of management in relation to the 
undertaking of the company; 
(ii) all persons exercising any power of management in 
relation to the undertaking of the company, including 
persons holding offices as Directors, Agents or Managers, 
as the case may be, immediately before the appointed 
day, but excluding those who are salaried employees of 
the undertaking of the company shall, subject to the 
provisions of clause (iii),,cease to exercise such power; 
(iii) all salaried employees of the undertaking of the company 
including persons holding salaried offices as whole-time 
Directors, Agents or Managers and continuing in office 
immediately before the appointed day shall be employed 
by the State Government on such terms and conditions, 
not being less advantageous than what they were entitled 
to immediately before the appointed day, as may be 
determined by the State Government by rules made in 
this behalf. 
5. All properties which remain under the management of the State 
Government under this Act shall be used for the purposes for which 
they were being used immediately before the appointed day and upon 
the expiry of the period of such management the properties shall revert 
to the company. 
6. (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 person or body of persons 
appointed under section 3, or 
(b) wrongfully obtains possession of any property forming part of 
the undertaking of the company, or 
Use of 
properties 
under the 
management 
of the State 
Government. 
Penalty. 
214 
The Mackintosh Burn (Taking over of Management) Act, 1976. 
XLI of 1976.] 
(Sections 7-11.) 
(c) wilfully withholds or fails to produce to any person authorised 
under this Act, any register, record or other document which 
may be in his possession, custody or control, or 
(d) fails, without any reasonable cause, to submit any accounts, 
books, or other documents when required to do so, 
shall be punishable with imprisonment for a term which may extend to 
two years, or with fine which may extend to two thousand rupees, or 
with both. 
(2) All offences under this section shall be cognizable. 
7. The person or body of persons appointed under section 3 shall 
have the power to institute, defend or take part in, any suit or 
proceeding by or against the company, relating to the undertaking of the 
company. 
Power to 
institute 
or defend 
suits and 
proceedings. 
8. (1) The State Government may, on the application made by the Advances 
person or body of persons appointed under section 3 in this behalf, by State 
advance moneys to the company for the purpose of efficiently managing Govemment. 
the business of the company and all such moneys shall be repaid by the 
company with such interest as may be prescribed. 
(2) Any money advanced to the company under sub-section (1) 
shall, subject to the prior payment of municipal rates and any sum due 
to Government on account of taxes or fees, be a first charge upon the 
undertaking of the company. 
9. No suit, prosecution or other legal proceeding shall lie against Protection 
the State Government or the person or body of persons appointed under of action 
section 3 or any other person for anything which is in good faith done or the Act. 
taken under 
intended to be done under this Act or the rules made thereunder. 
10. If any difficulty arises in giving effect to the provisions of this 
Act the State Government may take such steps or issue such orders not 
inconsistent with this Act as may be necessary for the removal of the 
difficulty. 
11. (1) The State Government may 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— 
(a) the management of the undertaking of the company, and (b) any other matter which has to be, or may be, prescribed. 
Power to 
make rules. 
 
215 
  
Power to 
remove 
difficulties. 

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