Calcutta Tramways Company (Acquisition Of Undertaking) Act, 1976
No: 54 Dated: Jan, 06 1977
THE CALCUTTA TRAMWAYS COMPANY (ACQUISITION OF UNDERTAKING) ACT, 1976
West Bengal Act LIV of 1976
An Act to provide for the acquisition of the undertaking of the Calcutta Tramways Company Limited.
Whereas it is expedient to provide for the acquisition of the undertaking of the Calcutta Tramways Company Limited for the purpose of ensuring better transport facilities to the members of the public and for matters connected therewith or incidental thereto;
It is hereby enacted as follows:-
1. Short title. - This Act may be called the Calcutta Tramways Company (Acquisition of Undertaking) Act, 1976.
2. Definitions. - In this Act, unless the context otherwise requires,-
(a) "appointed day" means the 8th day of November, 1976;
(b) "Company" means the Calcutta Tramways Company Limited;
(c) "prescribed" means prescribed by rules made under this Act.
3. Undertaking of the Company to vest in the State Government. - (1) On and from the appointed day, the undertaking of the Company shall, by virtue of this Act, be transferred to, and vest in, the State Government.
(2) Upon the vesting of the undertaking of the Company under subsection (1), the State Government may, for the efficient management and administration of the undertaking of the Company, provide by notification, for the transfer of such undertaking to, and vesting thereof in the new company with effect from such date as may be specified in the notification.
4. General effect of vesting. - (1) The undertaking of the Company shall be deemed to include the properties, cash balances, reserve funds and other assets of the Company including lands, buildings, works, machinery, plants, rolling stocks, lines, mains, motors, dynamos, switchboards, apparatus, tools, implements, motor trucks and other like property which may be in the ownership, possession, custody or control of the Company in relation to its undertaking, immediately before the appointed day and all books of accounts, registers and all other documents of whatever nature relating thereto.
Explanation. - For the avoidance of doubts, it is hereby declared that the expression" undertaking of the Company" does not include-
(a) any debt due to the Company; and
(b) any amount recoverable by the Company from its share-holders or directors.
(2) All properties included as aforesaid in the undertaking of the Company which has vested in the State Government under sub-section (1) of section 3 shall, by force of such vesting, be freed and discharged from any trusts, obligations, mortgages, charges and other encumbrances affecting them, and any attachment, injunction or any decree or order of any court restricting the use of any such property in any manner shall be deemed to have been withdrawn.
(3) Any contract, whether express or implied, or other arrangement whether under any statute or otherwise, in so far as it relates to the affairs of the Company in relation to its undertaking and in force immediately before the appointed day shall be deemed to have terminated on the appointed day.
(4) If on the appointed day, any suit, appeal or other proceeding, of whatever nature, in relation to any business of the undertaking of the Company is pending by or against the Company, the same shall not abate, be discontinued or be in any way pre-judicially affected by reason of the transfer of the undertaking of the Company or of anything contained in this Act and the suit, appeal or other proceeding may be continued, proceeded with and enforced by or against the Company.
(5) Every person in whose possession or custody or under whose control the undertaking of the Company or any part of it may be, immediately before the appointed day, shall, on the appointed day, deliver the possession of the said undertaking or part thereof to the State Government or to such person as may be specified by the State Government in this behalf.
(6) The State Government may take, or cause to be taken, all necessary steps for securing the possession of the undertaking of the Company which has vested in it under sub-section (1) of section 3.
5. Management and administration of the Company. - The undertaking of the Company which has vested in the State Government under sub-section (1) of section 3, shall be managed on behalf of the State Government by such person as may be appointed by the State Government in this behalf in accordance with such rules as may be prescribed.
5A. Formation and registration of a new company. - Before the publication of the notification under sub-section (2) of section 3, there shall be formed and registered a Government company, with the name "The Calcutta Tramways Company (1978) Limited", in accordance with the provisions of the Companies Act, 1956.
6. Payment of amount. - (1) The State Government shall deposit, in cash, in the Court of the Chief Judge of the City Civil Court, Calcutta, to the credit of the Company, an amount equal to the sum of rupees two crores and eighteen lakhs for the transfer to, and vesting in, the State Government,under sub-section (1) of section 3 of the undertaking of the Company.
(2) For the avoidance of doubts, it is hereby declared that the liabilities of the Company in relation to its undertaking which has vested in the State Government under sub-section (1) of section 3, shall be met from the amount referred to in sub-section (1) of this section.
(3) In meeting the liabilities of the Company in relation to its undertaking which has vested in the State Government under sub-section (1) of section 3, the Court shall distribute the amount referred to in sub-section (1) of this section amongst the creditors of the Company, whether secured or unsecured, in accordance with this rights and interests, and if there is any surplus left after such distribution, amongst the contributories of the company in accordance with the rights and interests of such contributories.