The Alcock Ashdown Company Limited (Acquisition of Undertakings) Act, 1973 was enacted on December 14, 1973 in order to acquire undertakings under the Alcock Ashdown Company Limited with an intent to guarantee reasonable and unified progression and manufacture of commodities that are necessary to the want of the nation generally and defense personnel in particular and for other issues related with such company. The undertakings of the Company as specified in the Act stipulates the industrial branch under the ownership of the Company and situates at Bhavnagar in the State of Gujarat, the industrial branch under the ownership of the Company and situated at Bombay in the State of Maharashtra. The undefined terms used in the Act shall be interpreted in the light of Companies Act, 1956.
From the implementation of the enactment, the undertaking of the Company shall deem to be transferred to the Central Government and hence, such undertaking shall vest with the Government thereafter. The undertakings of the Company shall consists of assets, authorities, rights and entire movable or immovable property, cash, reserve funds, savings and interest that exists in or occur out of the property prior to the appointed day which is in the ownership, control, authority and possession with regard to such undertakings which is within India or abroad as well as all account books, registers and documents that are connected with the undertaking. Whereas the undertaking of the company exempts debts owing to the Company and amount which is to be recovered by the Company from shareholders or directors.
The property added within the meaning of undertaking that are under the Government shall be made free and released from trusts, liabilities, mortgages, charges, lien or other impediments that impinge on it and any attachment, restriction or verdict or order of the Court which confine the exercise of property shall be considered to be withdrawn. Where on the commencement of the Act any litigation is pending with regard to the undertaking by or against the company, such ligation shall not decline, suspended or prejudicially come against due to such undertaking but the litigation may be sustained, prosecuted and imposed against the company.
The receiver or official liquidator working under the company with the possession or protection of whom the management of undertakings is vested shall convey possession of the undertakings to the Central Government. The receiver or official liquidator who has the custody of books, documents or records of the undertakings vested in the Central Government shall be legally responsible for the safety of such books, documents or records to the Central Government or to persons specified by the Central Government. The Central Government may take all essential steps to keep possession of undertakings that are vested according to the provisions of the Act.
The Company is obliged to furnish complete inventory to the Government regarding the properties and assets belonging to the Company that are related with the undertakings which are under the control of the Central Government. The undertakings under the management of Central Government shall be controlled in the name of Central Government by such body of persons who is suggested by the Central Government and such body of persons shall hold the control according to the regulation framed by the Central Government. The assets, authority, privileges and the property, reserve funds, cash etc of the Bhavnagar unit that are under the Central Government shall vest in the State of Gujarat. In addition, all the assets, liabilities and privileges, cash, reserve funds etc that arise out of the property of Bombay shall continue to vest with the Mazagon Dock Limited with its registered office in the State of Maharashtra.
The Act empowers the Central Government to formulate regulations according to the provisions of the Act which are to be laid before the Parliament. The present Act has been amended by the Alcock Ashdown Company Limited (Acquisition of Undertakings) Amendment Act, 1988.