The National Iron And Steel Company Limited ( Acquisition And Transfer Of Undertakings ) Act, 1984

O 
GOVERNMENT OF WEST BENGAL 
LEGISLATIVE DEPARTMENT 
West Bengal Act XXXIV of 1984 
THE NATIONAL IRON AND STEEL COMPANY 
LIMITED (ACQUISITION AND TRANSFER OF 
UNDERTAKINGS) ACT, 1984. 
[Passed by the West Bengal Legislature.] 
[Assent of the President was first published in the Calcutta Gazette, 
Extraordinary, of the 17th November, 1984.] 
[17th November, 1984.] 
An Act to provide for the acquisition and transfer, in the public interest, of 
the undertakings of the National Iron and Steel Company Limited, and 
for matters connected therewith or incidental thereto. 
WHEREAS the National Iron and Steel Company Limited had been 
engaged in the manufacture and production of steel castings and rolled 
materials; 
AND WHEREAS the management of the undertakings of the National Iron 
and Steel Company Limited had been conducted in the manner highly 
detrimental to the public interest; 
AND WHEREAS the management of the undertakings of the National Iron 
and Steel Company Limited was taken over by the Central Government 
65 of 1951. 
	
	 under section 18AA of the Industries (Development and Regulation) 
Act, 1951; 
AND WHEREAS for the purpose of reconstructing and rehabilitating the 
undertakings of the National Iron and Steel Company Limited 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:— 
CHAPTER I 
Preliminary 
1. (1) This Act may be called the National Iron and Steel Company 
Limited (Acquisition and Transfer of Undertakings) Act, 1984. 
(2) It shall come into force on such date as the State Government may, 
by notification, appoint. 
223 
Short title 
and 
commence-
ment. 
The National Iron and Steel Company Limited (Acquisition and 
Transfer of Undertakings) Act, 1984. 
[West Ben. Act 
(Chapter 1.—Preliminary.—Section 2.—Chapter IL—Acquisition and 
transfer of the undertakings of the Company. Sections 3, 4.) 
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 National Iron and Steel Company 
Limited, being a company as defined in the Companies Act, 
1956, and having its registered office at Belur, post-office 
Belurmath, district Howrah; 
(d) "date of taking over of management of the undertakings of the 
Company" means the 22nd day of September, 1979; 
(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 
undertakings 
of the 
Company. 
General 
effect of 
vesting. 
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, 
224 
The National Iron and Steel Company Limited (Acquisition and 
Transfer of Undertakings) Act, 1984. 
XXXIV of 1984.] 
(Chapter 11.—Acquisition and transfer of the undertakings 
of the Company.—Section 4.) 
factories, workshops, stores, instruments, plants, machinery and equipment, 
installations, laboratories, office furniture, stationary 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 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, 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 an 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, 
in a new Government Company, the existing or the new Government 
225 
The National Iron and Steel Company Limited (Acquisition and 
Transfer of Undertakings) Act, 1984. 
[West Ben. Act 
(Chapter II.—Acquisition and transfer of the undertakings 
of the Company.—Section 5.) 
Central 
Governemnt 
or State 
Government 
or existing 
or new 
Government 
company not 
to be liable 
for certain 
prior 
liabilities. 
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, 
226 
The National Iron and Steel Company Limited (Acquisition and 
Transfer of Undertakings) Act, 1984. 
XXXIV of 1984.] 
(Chapter II.—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 
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 becomes 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; 
227 
The National Iron and Steel Company Limited (Acquisition and 
Transfer of Undertakings) Act, 1984. 
[West Ben. Act 
(Chapter 11.Acquisition and transfer of the undertakings 
of the Company.—Sections 6, 7.) 
(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. 
Transfer of 
the under-
takings of the 
Company 
from an exis-
ting Govem-
ment com-
pany to a new 
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 
228 
The National Iron and Steel Company Limited (Acquisition and 
Transfer of Undertakings) Act, 1984. 
XXXIV of 1984.] 
(Chapter III—Payment of amounts.—Sections 8, 9.) 
that new Government company, and on the issue of such declaration, 
the right, title and interest of the Company in relation to is under-
takings 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 Govern-
ment company with effect from the date on which such declaration is 
made. 
(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 
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 twenty-three lakhs and twenty-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 seven thousand and five hundred. 
(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. 
229 
Payment of 
amount. 
Payment of 
further 
amount. 
The National Iron and Steel Company Limited (Acquisition and 
Transfer of Undertakings) Act, 1984. 
[West Ben. Act 
(Chapter IV.—Management, etc., of the undertakings 
of the Company.—Section 10.) 
(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 rights 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 ( I) 
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. 
230 
The National Iron and Steel Company Limited (Acquisition and 
Transfer of Undertakings) Act, 1984. 
XXXIV of 1984.] 
(Chapter IV.—Management, etc., of the undertakings 
of the Company.—Section 11.) 
(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 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, 
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. 
231 
Duty of 
persons in 
charge of 
management 
of the 
undertakings 
of the 
Company to 
deliver all 
assets, etc. 
The National Iron and Steel Company Limited (Acquisition and 
Transfer of Undertakings) Act, 1984. 
[West Ben. Act 
(Chapter IV.—Management, etc., of the undertakings of the 
Company.—Section 12.—Chapter V.—Provisions relating 
to the employees of the Company.—Section 13.) 
Accounts 
and audit. 
(5) The Company 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. 
1 of 1956. 
Employment 
of certain 
employees 
to continue. 
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, 
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. 
232 
The National Iron and Steel Company Limited (Acquisition and 
Transfer of Undertakings) Act, 1984. 
XXXIV of 1984.] 
(Chapter V.—Provisions relating to the employees of the 
Company.—Section 14.—Chapter VI.—Commissioner 
of Payments.—Section 15.) 
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 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. 
(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 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. 
233 
Provident 
fund and 
other funds. 
Appoint-
ment of 
Commis-
sioner of 
Payments. 
The National Iron and Steel Company Limited (Acquisition and 
Transfer of Undertakings) Act, 1984. 
[West Ben. Act 
(Chapter VI.—Commissioner of Payments.—Sections 16, 17.) 
(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. 
Payment by 
State 
Government 
to the 
Commis-
sioner. 
Certain 
powers of 
State 
Government 
or existing, 
or new, 
Government 
company. 
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. 
(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. 
234 
The National Iron and Steel Company Limited (Acquisition and 
Transfer of Undertakings) Act, 1984. 
XXXIV of 1984.] 
(Chapter VI.—Commissioner of Payments.—Sections 18-21.) 
(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 
such claim before the Commissioner within thirty days from the specified 
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, 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 
Commissioner shall arrange 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. 
235 
Claims to be 
made to the 
Commis-
sioner. 
Priority of 
claims. 
Examination 
of claims. 
Admission 
or rejection 
of claims. 
The National Iron and Steel Company Limited (Acquisition and 
Transfer of Undertakings) Act, 1984. 
[West Ben. Act 
(Chapter VI.-Commissioner of Payments.-Section 21.) 
(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 the 
same powers as are vested in a civil court under the Code of Civil 5 of 1908. 
Procedure, 1908, while trying a suit, in respect of the following matters:— 
(a) the sunmoning 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 Indian Penal Code and the Commissioner shall be deemed 45 of 1860. 
to be a civil court for the purpose of section 195 and Chapter XXVI 
of the Code of Criminal Procedure, 1973. 	 2 of 1974. 
(7) A claimant who is dissatified with the decision of the 
Commissioner may prefer an appeal against the decision to the principal 
civil court of original jurisdiction whithin 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. 
236 
The National Iron and Steel Company Limited (Acquisition and 
Transfer of Undertakings) Act, 1984. 
XXXIV of 1984.] 
(Chapter VI.—Commissioner of Payments.—Sections 22-24.—
Chapter VII.—Miscellaneous.—Sections 25, 26.) 
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 Governemnt; 
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 of any court, tribunal or 
other authority. 
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 Governement. 
237 
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. 
Assumption 
of liability. 
The National Iron and Steel Company Limited (Acquisition and 
Transfer of Undertakings) Act, 1984. 
[West Ben. Act 
(Chapter VII. Miscellaneous.-Sections 27, 28.) 
(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. 
Contracts to 
cease to 
have effect 
unless 
ratified by 
the State 
Government 
or existing, 
or new, 
Government 
company. 
Penalties. 
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 recording 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 
(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, 
238 
The National Iron and Steel Company Limited (Acquisition and 
Transfer of Undertakings) Act, 1984. 
XXXIV of 1984.] 
(Chapter VII—Miscellaneous.—Section 29.) 
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. 
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. 
239 
Offences by 
companies. 
The National Iron and Steel Company Limited (Acquisition and 
Transfer of Undertakings) Act, 1984. 
[West Ben. Act 
Protection of 
action taken 
in good 
faith. 
Delegation 
of powers. 
(Chapter VII.—Miscellaneous.—Sections 30-32.) 
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 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 32 or section 33, 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. 
Power to 
make rules. 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 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 seccessive 
sessions, and if, before the expiry 

Excerpt shown. Open the full act in Lexace.

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