THE ALUMINIUM CORPORATION OF INDIA LIMITED (ACQUISITION AND TRANSFER OF ALUMINIUM) UNDERTAKING ACT, 1984

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The Aluminium Corporation of India Limited (Acquisition and Transfer of Aluminium) Undertaking Act, 1984 was enacted on June 2, 1984 for the purpose of acquiring and transferring of interest, privilege or title of the Aluminium Corporation of India with regard to the undertaking in State of West Bengal in order to guarantee the perpetuity of manufacture of aluminium as well as products fabricated by aluminium that are necessary to satisfy the wants of the society and for this reason to put into result the State policy that endeavors to secure the rationale included under Article 39 (c) of the Constitution of India.

The undertaking which is under the management of Aluminium Corporation of India Limited is a Company coming under the purview of the Companies Act, 1956 located at State of West Bengal. It holds the manufacture of aluminium along with products fabricated of aluminium coming under the Schedule I of Industries (Development and Regulation) Act, 1951. Due to the worsening of the efficiency of functions, crucial financial instability, breakdown of unified industrial relations and certain other causes, in 1973 the said Company was forced to close down the undertaking. The Central Government along with the Government of West Bengal made continuous attempts to get the revitalization of the undertaking for the purpose of rehabilitating the workmen who are negatively affected due to the shut down of the undertaking. They also tried to increase the supply of aluminium as well as products fabricated of aluminium but the tasks failed and the complete capital of the company wear away by outstanding debts and the administrators were not agreeable to invest funds.

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The management of the undertaking was obtained by the Central Government in order to re-start the undertaking on May1, 1978 according to the provisions stated in Industries (Development and Regulation) Act, 1951. Due to the deficiency of machinery, plant and equipments and severe weakening of the efficiency of function, the undertaking was not capable to become workable even though financial and other backing was given by the Central Government along with the Government of West Bengal. To rehabilitate and reinstate the capital apparatus an added investment of extensive fund was required. But the company was incapable to invest such large sum which is essential to overcome the adverse financial insecurity. The investment is also essential to secure the constant employment of workmen working under the undertaking. It was also essential in the interest of public to acquire the undertaking to facilitate the Central Government to invest funds and to guarantee that the interests of the public are attained by functioning of the undertaking. Hence, for these reasons, the Central Government enacted the Aluminium Corporation of India Limited (Acquisition and Transfer of Aluminium) Undertaking Act, 1984.

The Act provides that from June 6, 1984, the aluminium undertaking as well as the Aluminium Corporation of India which is under the control of Central Government shall be transferred to the Bharat Aluminium Co. Ltd. From the implementation of the Act, the Aluminium undertaking of the Company along with all privileges, interest and title of the Company with respect to the undertaking shall be transferred to the Central Government as per the provisions of this Act. Moreover, the Aluminium undertaking of the Company is supposed to consists of entire properties, mines, buildings, lands, stores, equipments, instruments, factories, quarries etc connected with the undertaking and privileges and authority from such property that are under the ownership, control and possession of the Company added with the account books, documents, registers etc. Such property shall be made free from any attachment, decree, injunction or order obtained or any lease, encumbrances, liabilities, charge or lien. The Act specifically provides that the Central Government or the Bharat Aluminium Company is not accountable to clear off the liabilities prior to the vesting of such property to such Government or Company.

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Hence, the Act was formulated with an intent to comply with the constitutional mandates enshrined under Article 39 (c) of the Constitution and to safeguard the interests of public.