The Indian Copper Corporation (Acquisition of Undertaking) Act, 1972 as enacted on 21st September, 1972. This is declared as state policy. In simple words, this act is declared for giving effects to policy or betterment of state so that it secures the principles that are mentioned in article 39(b) of Constitution. For the act “Hindustan Copper means, the Hindustan Copper Limited being a government company as defined in section 617 of the Companies Act, 1956 and having registered office at Khetri Nagar in State of Rajasthan”. As per provisions of the act pledge of the company is conferred to Central Government.
Company’s pledge is considered to incorporate all assets, rights, hires or rent out, powers, command and benefit, all property movable and immovable that includes mines-workshops-projects-refiners-stores-machinery-automobiles, mined or extract of copper and other ores, concentrates and metals in process or in transit, all cash which will include reserve funds, cash in hand, books of accounts, any Investments made, any profits arising out of any investments made, any borrowing, Liabilities that is due with company. As per the provision of the act any Contract or Agreement and undertaking that exists directly before appointed day and affects the company and also to person who is surety on behalf of the company. In such manner if any proceeding or cause of action arise by company or against the company or its guarantor towards undertaking made in India shall have effect even on commencement of the act i.e., it will be continued though the act formed or passed and it will be stable or enforceable even if act is not passed.
Central Government may order in writing to company that Undertaking and all other properties, assets, liabilities to vest under Hindustan Copper from date of publication rather continuing to vest with Central Government. Once, it is conferred then all the properties, assets, liabilities to be considered of Hindustan Copper. Thus, Hindustan Copper will act only as Central Government may direct or as per Central Governments rules and regulation prescribe. When Central Government or Hindustan Copper is conferred with any property then any person who is in custody with such conferred property has to handover it to Central Government or Hindustan Copper as required. All the properties and books of accounts that are conferred to Central Government or Hindustan Copper and if it is not in custody of Central Government or Hindustan Copper then they have to take all required steps take it in there custody. Company has to provide all particulars related to company like all properties information, assets, liabilities, obligations and all those agreements that are entered by company or behalf of the company within one month as per provisions. All employees who are with company can any time transfer there service to Central government or Hindustan Copper and are liable to provident fund, welfare funds etc., and if services are transferred then there rights like provident fund and welfare fund is also transferred from company to Central Government or Hindustan Copper as the case may be.
If any person who is wrongfully in possession of property which is vested with Central Government or Hindustan Copper and if wilfully fails to provide the inventory then such person is punishable with imprisonment which can extend to two or fine or both. If any offence committed by company or any person how is in charge while committing offence in relation to conduct of business is liable for punishment. Any Act done or any thing done for the employees by Central Government or Hindustan Copper in good faith or for there benefit then legal proceeding or any suit will not lie on them as per provision of the act. In such manner if any Contract or agreement made and central government by inquiry is in opinion that such contract or agreement is in bad faith i.e., it is not for any benefit or is only benefiting to company then Central Government by order can cancel the agreement or can verify the agreement or contract and after doing such cancellation or verification that contract or agreement will have that effect.
by Samata. H. Joshi