The Brentford Electric (India) Limited (Acquisition and Transfer of Undertakings) Act, 1987

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The Brentford Electric (India) Limited (Acquisition and Transfer of Undertakings) Act, 1987 (Act no. 36 of 1987) was enacted by the Indian Parliament in the 38th year of republic of India, as an Act of Central Government with the object and purpose for acquiring and transferring the Undertakings of the Brentford Electric (India) Limited, in order to secure the proper and effective management in relation to the said undertakings for ensuring the continued manufacturing and production of the Electric equipments for sub- serving the general public interests as the same are needed essentially for the Country’s economy. Earlier, the present company was engaged in the manufacturing and productions of the Scheduled articles being ‘Electrical Equipments’ as per the First Schedule annexed to the Industries (Development and Regulation) Act, 1951, however, later the Central Government has taken over the management of it’s undertakings under the provisions of the said Act of 1951. And by the present enactment the said undertakings of the Brentford Electric (India) Limited, company is also necessitate for acquiring and transferring the same to the Central Government, in the public as well as nation’s interest. The Act has received the assent of honourable president of India on 15th day of September, 1987.

The second chapter of the Act makes very relevant provisions insofar as the purpose of this Act is concerned, where it is given that the said undertakings of the concerned company along with rights, interests, etc. related to that undertaking is acquired and vested in the Central Government and all the assets, rights, powers, properties etc. of such company in relation to those Undertakings, should also be transferred and vested with that Government. Such properties which are vested by virtue of this Act should also be freed and discharged from all obligations, encumbrances, etc. Similarly, any licences or other instruments granted in relation to such undertakings to the concerned Company should also be vested under this Act with the Central Government and should continue to have force. Also any suits or legal proceedings connected with those undertakings should be continued by the Central Government or by the Andrew Yule and Company Limited, Calcutta as directed by the Central Government. However, for any prior liabilities of the Company should not be enforceable against the Central Government or the Andrew Yule and Company limited. And the liability as to any advances made earlier to the company for any articles supply, etc. should, after its management was taken over, be treated as that of Central Government and can also be of Andrew Yule and Company limited, if the undertaking is transfer to that company. The said transfer of undertaking to the Andrew Yule and Company limited can be done by the Central Government by virtue of its power provided under section 6 of this Act.

The third chapter provides for payment of cash amount of 37.50 lakhs of rupees to the earlier company being the Brentford Electric (India) Limited by the Central Government for acquisition and vesting of its concerned undertakings. And for the earlier taking over of the management of the undertaking by the Central Government, it is required to pay for each years from the date of such taking over and till the acquisition of the undertakings under this Act, the amount of rupees 5000.

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Further, chapter IV of the Act make provisions as to management, general supervisions, controlling, etc. of the acquired undertakings. Such management, etc. to be vested with the Central Government or with the Andrew Yule and Company limited is the said undertakings were vested with the Andrew Yule and Company Limited. And also every persons who were in- charge of such management of such undertaking previously to this acquisition, should deliver the assets, accounts books, registers and other relevant documents to the Andrew Yule and Company limited company.

Further, chapter V of the Act makes provisions as to employees of the earlier company, where all such employees employed by the earlier company in relation to such transferred undertakings are required to continue to be as such under the Central Government, and where such undertakings were vested with the Andrew Yule and company limited, then such employees should be treated as that of Andrew Yule and company with all their rights and privileges which they were having under previous employment. Similarly, if any funds including provident and superannuation fund which were established by the earlier company are required to be transferred under this Act to the Central Government or to the Andrew Yule and company limited. Also next chapter dealt with the provisions for appointment of Commission of payment as required under this Act for making payments and dealing with the claims under this Act.

Lastly, the Act makes miscellaneous provisions under its chapter VII, where at the first instance, it is given that the provisions of this Act should have effect, even if any provisions of any laws contains contrary to that effect. Further it is made clear that if any contracts which were entered into by earlier company in relation to concerned undertakings which after such transfer and vesting under this Act should be terminated, however, the same can be continued if are ratified by the Central Government or Andrew Yule and company limited within the period 180 days as are given under this Act. Moreover, there are also provided certain penal provisions under this Act. The Central Government and its officer and also the Andrew Yule and Company limited and its officers are protected against legal actions for their acts done and damages caused in good faith or even when done in pursuance with this Act. The Central Government is empowered to direct the delegation of powers under this Act to the specified persons and also empowered to make rules under this Act to carry out the provisions of this Act and also on the matters provided under this Act. Lastly, the Central Government is empowered to make an order for removing difficulties arising while giving effect to the provisions of this Act and such order can only be made within the period of 2 years from the date on which the President of India gives assents to this Act.

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