India Belting And Cotton Mills Limited (Acquisition And Transfer Of Undertakings) Act, 1992
No: 31 Dated: Oct, 11 1993
THE INDIA BELTING AND COTTON MILLS LIMITED (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1992
West Bengal Act XXXI of 1992
An Act to provide for the acquisition and transfer, in the public interest, of the undertakings of the. India Belting and Cotton Mills Limited, and for matters connected therewith or incidental thereto.
Whereas the India Belting and Cotton Mills Limited had been engaged in the manufacture of hair belting, cotton conveyors and hose pipes;
And Whereas the management of the undertakings of the India Belting and Cotton Mills Limited had been conducted in a manner highly detrimental to the public interest;
And Whereas the management of the undertakings of the India Belting and Cotton Mills Limited was taken over by the Central Government under section 18AA of the Industries (Development and Regulation) Act, 1951, on and from the 6th day of September, 1974;
And Whereas the period of take-over of the management of the Company expired on the 5th day of September, 1991;
And Whereas for the purpose of reconstructing and rehabilitating the undertakings of the India Belting and Cotton Mills Limited so as to subserve the interest of the general public by diversion of the basic production to such new articles of production as shall ensure the commercial viability of the Company, it is necessary to acquire the undertakings of the Company;
It is hereby enacted as follows :-
CHAPTER I
Preliminary
1. Short title and commencement. - (1) This Act may be called the India Belting and Cotton Mills Limited (Acquisition and Transfer of Undertakings) Act, 1992.
(2) Section 28 shall come into force on the date of publication of this Act in the Official Gazette, and the remaining provision of this Act shall be deemed to have come into force on the 16th day of November, 1992.
2. Definitions. - 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 15;
(c) "Company" means the India Belting and Cotton Mills Limited, being a company as defined in the Companies Act, 1956, and having its registered office at 15, Satish Chandra Ghosh Lane, Serampore, Hooghly;
(d) "date of taking over of management of the undertakings of the Company" means the 6th day of September, 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.
CHAPTER II
Acquisition and Transfer of the undertakings of the Company
3. Transfer to, and vesting in, State Government of the undertakings of the Company. - 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. General effect of vesting. - (1) The undertakings of the Company shall be deemed to include all assets, rights, leaseholds, 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 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 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, 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 has 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 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 to vest, under section 6, in an existing Government company, or under section 7, in a new Government company, by or against such Government company.