The Sri Sri Lokenath Cotton Mills Limited ( Acquisition And Transfer Of Undertakings ) Act, 1987

GOVERNMENT OF WEST BENGAL 
LEGISLATIVE DEPARTMENT 
West Bengal Act XII of 1987 
THE SRI SRI LOKENATH COTTON MILLS LIMITED 
(ACQUISITION AND TRANSFER OF 
UNDERTAKINGS) ACT, 1987. 
[Passed h' the West Bengal Legislature.] 
[Assent of the Governor was first published in the Calcutta Gazette, 
Extraordinary, of the 18th November. 1987.] 
[18th November, 1987.] 
An Act to provide for the acquisition and transfer, in the public interest, 
of the undertakings of the Sri Sri Lokenath Cotton Mills Limited, and 
for matters connected therewith or incidental thereto. 
WHEREAS Sri Sri Lokenath Cotton Mills Limited had been engaged 
in the processing of cloth comprising bleaching of grey cloth and dyeing 
and printing of cloth; 
AND WHEREAS Sri Sri Lokenath Cotton Mills Limited has been closed 
and such closure has been highly detrimental to the interest of the general 
public; 
AND WHEREAS for the purpose of reconstructing and rehabilitating the 
undertakings of Sri Sri Lokenath Cotton Mills Limited so as to subserve 
the interests of the general public by utilising the production facilities 
and equipment of the undertakings of the Company and generating 
employment. it is necessary to acquire the undertakings of the Company; 
It is hereby enacted in the Thirty-eighth Year of the Republic of India, 
by the Legislature of West Bengal, as follows:- 
1. ( I) This Act may be called the Sri Sri Lokenath Cotton Mills 
Limited (Acquisition and Transfer of Undertakings) Act, 1987. 
(2) It shall be deemed to have come into force on the 3rd day of 
October, 1987. 
2. In this Act, unless the context otherwise requires,— 
(a) "appointed day" means the date on which this Act comes 
into force; 
(b) "Company" means the Sri Sri Lokenath Cotton Mills 
Limited being a company as defined in the Companies Act, 
I of 1956. 1956, and having its registered office at 63, Radha Bazar 
Street, Calcutta-700 001; 
Short title 
and 
commonce- 
Definitions. 
149 
The Sri Sri Lokenath Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1987. 
[West Ben. Act 
Transfer to, 
and vesti n g 
In. the State 
Government 
colic 
undertakings 
ot the 
Company .  
General 
effect of 
'testing. 
(Sections 3. 4.) 
(c) "existing Government company" means a Government 
company which is carrying on business on the appointed 
day; 
(d) "notification" means a notification published in the Official 
Gazette; 
(e) words and expressions used herein and not defined but 
defined in the Companies Act, 1956, shall have the meanings 
respectively assigned to them in that Act. 
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, reservoir, 
railway siding, factory sheds, plant and machinery, equipments, furniture 
and fixtures, electrical installations, and all other rights and interest in, 
or aristing out of, such property as were immediately before the appointed 
day in the ownership, power or control of the Company, whether within 
or outside India. 
(2) All property included as aforesaid in the undertakings which 
have vested in the State Government under section 3 shall, by force of 
such vesting, be freed and discharged from any trusts, obligations, 
mortgages, charges, liens and other encumbrances affecting it, and any 
attachment, injunction or any decree or order of any court restricting the 
use of such property in any manner shall be deemed to have been 
withdrawn. 
(3) 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 5 to vest in an existing 
Government company, by or against the existing Government company. 
I of 1956. 
150 
The Sri Sri Lokenath Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1987 
XII of 1987.] 
(Sections 5-7.) 
5. (1) Notwithstanding anything contained in section 3, 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 (I ) in an existing Government 
company, on and from the date of such vesting,— 
(a) that existing Government company shall be deemed to have 
become, and shall be deemed to be, the owner in relation to 
such undertakings. and 
(h) the rights and liabilities of the State Government in relation 
to such undertakings shall be deemed to have become, and 
shall he deemed to be, the rights and liabilities, respectively, 
of that existing Government company. 
6. (I) 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 
he given by the State Government to the Company in cash, as a one-time 
settlement, a sum of rupees six lakhs and eighty-three thousand within 
such time as the State Government may by notification specify. 
(2) For the avoidance of doubt, it is hereby declared that the liabilities 
of the Company in relation to the undertakings which have vested in the 
State Government under section 3, shall be met from the amount referred 
to in sub-section (I). 
(3) Every person having a claim to the amount as aforesaid or any 
part thereof shall prefer such claim before the Commissioner of Payments 
appointed under section 7 within such period as the State Government 
may by notification specify. 
Power of 
state 
Government 
to direct 
vesting of the 
undertakings 
of the 
Company in 
an existing 
Government 
company. 
Payment of 
amount. 
7. The State Government shall, for the purpose of disbursing the Appointment 
amount payable under section 6. by notification, appoint a Commissioner of Com
ner of
o mi- 
ssi  of Payments. 	 Payments. 
151 
The Sri Sri Lokenath Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1987. 
[West Ben. Act 
Management 
etc. of the 
undenakines 
of the 
Company. 
Duty to 
deliver 
possession of 
the underta-
kings. 
Act to have 
ovenrcling 
effect. 
Protection of 
action taken 
in good faith_ 
(Sections 8-11.) 
8. ( I ) The general superintendence, direction, control and 
management 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, when a direction has been given by the State Government 
under sub-section (I) of section 5, vest, on and from the date specified in 
such direction, in existing Government company specified therein, and 
thereupon the existing Government company so specified 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) Notwithstanding anything contained in sub-section (1), the 
existing Government company as aforesaid may, on such terms and 
conditions as it may determine and with the prior approval of the State 
Government, nominate, for management of the undertakings, any co-
operative society registered or deemed to be registered under the West 
Bengal Co-operative Societies Act, 1983, and thereupon such co-operative 
society shall carry on the manegement on behalf of the existing 
Government company in accordance with such regulations as may be 
made by the State Government in this behalf. 
9. (I) Notwithstanding any decree, judgement or order of any court 
or anything contained in any other law for the time being in force, the 
Company or any other person, in whose possession or custody or under 
whose control the undertakings of the Company (which have vested in 
the State Government or in any existing Government company under 
this Act) or any part thereof may be, shall deliver possession of the 
undertakings of the Company or such part thereof as may he in his 
possession, custody or control to the State Government or the existing 
Government company, as the case may be. 
(2) The State Government or the existing Government company may 
take. or cause to be taken, all necessary steps for securing the possession 
of the undertakings which have vested in the State Government or the 
existing Government company under this Act. 
10. 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. 
11. No suit, prosecution or other legal proceeding shall lie against 
the State Government or any officer of that Government or the existing 
Government company for anything which is in good faith done or 
intended to be done under this Act. 
West Ben. 
Act XLV of 
1983. 
152 
The Sri Sri Lokenath Cotton Mills Limited (Acquisition and 
Transfer of Undertakings) Act, 1987. 
XII of 1987.] 
West Ben. 
Ord. Ill of 
1987. 
(Sections 12-14.) 
12. (1) The State Government may, by notification, make regulations 
with regard to the matter specified in sub-section (2) of section 8. 
(2) Every regulation 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 regulation or the State Legislature agrees 
that the regulation should not be made, the regulation shall there-
after have effect only in such modified form 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 
regulation. 
13. If any difficulty arises in giving effect to the provisions of this 
Act, the State Government may. by order not incosistent 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. 
14. (I) The Sri Sri Lokenath Cotton Mills Limited (Acquisition 
and Transfer of Undertakings) Ordinance, 1987 is hereby repealed. 
(2) Notwithstanding such repeal, anything done or any action 
taken under the said Ordinance shall be deemed to have been validly 
done or taken under this Act. 
Power to 
make 
regulations. 
Power to 
remove 
difficulties. 
Repeal and 
saving. 
153 

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