The Andhra Scientific Company Limited (Acquisition and Transfer of Undertakings) Act, 1982 was enacted by the Parliament which came into effect on July 1, 1981. According to the provisions of the Act, Company includes Andhra Scientific Company Limited with its office registered at the State of Andhra Pradesh. The specified date is the date prescribed by the Central Government for the purposes provided under the enactment. The Act provides that from the initiation of the enactment, the undertakings belonging to the Company and every privilege, title as well as interest of the said company with respect to he undertakings shall be transferred to the Central Government and as a result vest with such Government.
The undertakings as provided under the Act is considered to embrace of assets, privileges, lease-holds, authority, entire property added with lands, structures, stores, equipments, utensils, cash, cheques, funds, account books, ownership, control, possession etc. The properties that are vested in the Central Government according to the provisions of the Act shall be discharged and freed from the ties of attachment, trust, debts, mortgage, encumbrances, charge etc and also from any decree, order or injunction obtained from any court that restricts the use of the properties in any mode or by appointing receiver with regard to the entire or some of the properties shall be considered to be withdrawn. All the mortgagees of the property which is presently under the ownership of the Government of India and other person having a charge on such property, interest or lien or connected with such property shall provide indication to the Commissioner of that mortgage, interest or lien with the specified time limit.
Moreover, for the purpose of clarification, the Act asserts that the mortgagee as provided under the Act or any person having a charge on such property or connected with regard to such property shall be under right to allege the pay back of the money spend on mortgage according to the rights and power specified under the enactment. Save for, the mortgage, interest, lien or charge shall be implemented with respect to that property transferred to the Government of India. The license or any other document which is provided to the Company with regard to the undertaking transferred to the Government of India by virtue of the provisions of the Act shall be persisting to be in effect from the day as per the tenor connected with or for the reason of that undertaking and from the date of transfer of the undertaking to a Government Company, such Company shall be considered to be alternated in the license or document similarly as such license or document had been provided to the Government Company. The Government Company is entitled to hold that License or document for the remaining term for which the Company would have kept such document or license upon the stipulations and terms of agreement.
Besides, if any litigation or other proceedings is pending with respect to the transferred property on the enforcement of the Act is initiated by or against such Company, such litigation shall not decline or cease that affects detrimentally due to that transfer or anything provided under the terms of the Act. The debts or obligations that are yet to be paid before the commencement of the Act on the Company, such debts or obligations can be recovered from the Company and the Central Government shall not be responsible for such accountability or burden. But if the Company undertakings are vested in the Government Company, the Government Company shall be liable to pay off such liabilities. The Central Government is also empowered to permit transfer of the undertaking under the Act to a Government Company. As a consideration for the transfer of the undertaking to the Central Government, such Government is liable to pay two hundred and twenty-four lakhs and ten thousand rupees to the Company.