Ganesh Flour Mills Company Limited (Acquisition and Transfer of Undertakings) Act has been promulgated on 30th March 1984. This Act has been enacted by the Parliament during the pending case between Company Law Board Vs Ganesh Flour Mills Company Ltd. This Act has been established in order to generate investments for continuity of Management of Mill under the Central Government.
This Act has been incorporated for acquisition and transfer of rights, title and interest of some undertakings of the Mill in order to strengthen the nucleus of public holdings and units involved in wholesome vanaspathi and refined Oil, nutritious foods and other consumer commodities to the public at reasonable price. This thereby giving effect to the policies of States towards securing the principles specified in our Constitution.
Immediately from the date of execution of this Act, the Central Government has acquired all the tangible and intangible rights, interests and titles over the powers and properties. It also acquires all the liabilities and debts in order to regulate and settle all the possible way of issues that arise during the course of management of this Mill in pursuance to this Act to raise investment. Even in case of Suit or Appeal or any other legal proceedings taken against the Company, shall not be discontinued. The Central Government is bound to handle any sort of issues that has been taken against this Company without prejudice.
The Central Government has power to delegate the vested rights of the Company to those company who is ready to complied with the rules and regulations framed by notifications in the Official Gazette after rights proper investigations and enquiry. From the date of transfer of vested rights, the Central Government has no more rights and liabilities over this Company. The Company that has occupied shall become the owner of this company. The Central Government after delegating its vested powers to the Company shall pay such amount as prescribed in this Act not only that it also pays an amount for deprivation of the Company of managing this Mill from the date of its transfer. This payment includes simple interest at the rate of four percent per annum on such amount prescribed from the date of its transfer.
Once the rights and liabilities were transferred to the Government Company, the Central Government has no rights to interfere in the regulations and management of the Mill. Though the Government has appointed certain custodian members to look after the progress of the Mill, it has no capacity to remove or order any responsibilities in pursuance to this Mill. Only the Government Company which holds the vested rights shall appoint further members or remove the existing members at their wimps and fancies.
Any persons in charge of any assets and liabilities shall transfer or deliver the same to the Company or the Government to which the vested rights get transferred to. These persons shall deliver all the material particulars with regard to the Mill’s tangible and intangible assets with the statements of accounts in regard to the same shall be presented to the Company or Government having vested rights.
In case of employment or transfer of employment, etc, the aggrieved employees could not gain compensation or claim under this Act or any other Act in force except the provisions if any under Industrial Disputes Act, 1947. He shall receive all the benefits as that he gets from the beginning if he is not transferred or his employment has not been varied. If his employment gets altered because of this transfer of vested rights, then his salaries and other benefits shall also get varied. In case of Provident Fund or superannuation, the amount standing on the particular date of transfer shall be paid. The Central Government shall appoint a Commissioner to disburse the payment during transfer and such other person to assist him. Commissioner’s salaries shall be paid within thirty days and other benefits where paid by opening a deposit account from public account of India.
In case of any person having claim from the Company, it has been sorted out on priority based. These claims have to be made before the Commissioner within thirty days from the specified date. If the Commissioner is satisfied with the reason for delay, shall provide another thirty days to entertain the claims. Commissioner shall fix the date of hearing and by notice fixed in social places and it shall be published in newspapers. The person who claims shall also disclose the proof of the claims, if failed to do so, he shall reject the claim made. Commissioner shall Act in pursuance to Civil Procedural Code, 1908 as a Civil Court.
In case of unclaimed or undisbursed money shall be kept in general revenue account of the Central Government. Either the Government Company or the Central Government who has the vested rights over the Mill shall regulate the matters with regard to this fund. This Act consists of penal provisions for each and every offence committed against the provisions of this Act with imprisonment and fines as it may deem fit. In case if any action done in pursuance of this Act at good faith, no legal proceedings shall sustain. This Act has been repealed.
by C.Srivenkatesh Prabhu