THE BENGAL CHEMICAL AND PHARMACEUTICAL WORKS LIMITED (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1980

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The Bengal Chemical And Pharmaceutical Works Limited (Acquisition and Transfer of Undertakings) Act, 1980 was enacted on December 12, 1980 for the purpose of getting hold of and reassigning the establishments under the Bengal Chemical and Pharmaceutical Works Limited and also for the issues related with such acquirement. The said company was under the production of medicines as well as pharmaceuticals, compounds and certain household commodities that are fundamental to accomplish the needs of the nation. The works of the company diminished and the business dealings declined in 1970s. Even though there was an increase in the same year, subsequently the production again turned down. The administration of the Company was also weak. The Central Government appointed the Investigation Committee to scrutinize the activities and administration of the Company. From then on, the control of the Company was handed over to the Central Government from December 15, 1977 as per the provisions of Section 18 A as provided under Industries (Development and Regulation) Act, 1951. The Central Government assigned the work to the Management Board. The attainment of the Company was required for restructuring and revitalizing to comply with the needs of the public in general by increasing the manufacture and allocating the various types of medicines and compounds.

By virtue of the provisions of the Act, from the date of implementation of the enactment, the establishments of the Company and the entire control over the Company with respect to the establishment shall be reassigned to the Government of India. Hence, the transfer shall have the effect to include the properties, privileges, authority, structures, establishments, equipments, laboratories, articles, cash balances, accounts, account books, records, documents etc which shall also be assigned to the Central Government. Such assets that are assigned to the Central Government shall be released from liabilities and encumbrances as well as from the proceedings of the Court.

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Moreover, the mortgage which is effected to the property of the Company shall also be released as per the terms of the enactment. In order to have clarity, the Act announces that the mortgagee of any of the property of the Company or the person having any charge or lien over such property shall have the authority to advance the amount under mortgage as per the stipulation stated under the enactment. The license which is issued to the Company with regard to the establishment that is assigned to the Government of India during the period prior to the enforcement of the Act and effected immediately shall be carried on as per the tenor to realize the objects of the establishment and the new Government Company shall get hold of such license issued to the establishment for the remaining term for which the license is granted under such terms and conditions stated. Where any Court proceedings are pending with respect to the establishment assigned to the Central Government, such proceedings shall not caved in and persists as such and shall also be transferred to the newly constituted Government Company.

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Additionally, the Government of India or the newly created Government Company shall not have any liability which persisted with regard to the establishment. Such liability and accountability shall not be made effect against the Government of India. The Government of India is also empowered under the enactment to issue direction with regard to the assigning of the control of the establishment to the newly formed Government Company. The Act imposes duty on some of the person who is under the administrative works of the establishment of the Company to convey some of the properties and assets as specified under the enactment. The Act further states provision for the maintenance of accounts and conduct of audits of under taking before the transfer to the Central Government. The employees who worked under the undertaking shall be given sanction to continue their work under the Government Company as well. The Commission of payments shall also be appointed under the enactment. The Central Government is empowered under the Act to frame rules for the effective implementation of the provisions of the enactment.