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The Transformer and Switchgear Limited (Acquisition and Transfer of Undertakings) Act, 1983

An Act of Central Government being enacted with the short title as the Transformer and Switchgear Limited (Acquisition and Transfer of Undertakings) Act, 1983 (Act no. 41 of 1983) was provided with the aim and object to acquire and transfer the Undertakings of the Transformer and Switchgear Ltd. in order to secure better utilization of the infra-structure available thereof. Moreover, the same is also for modernizing, augmenting the production of electrical transformers, switchgears, etc.  by the said Undertakings in the general public interests of the general public for providing continued supply thereof. It was observed prior to providing this legislation, that the said Company is engaged in such production activities and had been suffering heavy losses for a number of years prior to enactment, as such it was deemed expedient to enact the present Act in the 34th year of republic of India. The Act has received the assent of the President of India on 25th day of December, 1983. The provisions of this Act brought into operation on 8th day of November, 1983, as given under its preliminary provisions.

The Act makes provisions relevant to its purpose from section 3 of the Act. It is provided that the Undertakings of the aforesaid Company is transferred and vest in the Central Government in furtherance of this Act along with all its rights, title, assets, leaseholds, powers, privileges, properties, books of accounts, registers, etc. relating to those Undertakings. So far as vesting of properties as aforesaid is concerned, the same should be without any encumbrances, charges, mortgage, etc. And all licenses or other instruments which the company had granted in relation to those undertakings, and even any suits or other legal proceedings in relation to such undertakings should also continue to have effect even after such transfer and vesting. However, all liabilities of the Company in relation to such Undertaking will not be transferred under this Act, but the same will be enforceable against only such Company. Also any decree or award, etc. of any Court, Tribunal, etc. in relation to such undertaking against the Company will not be enforceable against the Central Government or even against Andrew Yule Company. Section 6 of the Act empowers the Central Government to provide directions as to vesting of such Undertakings to the Andrew Yule Company by notifying the same on such terms and conditions which will be specified by it under the same notification. And after such vesting, the Andrew Yule Company will become the owner of said Undertakings along with all its rights, and liabilities.

For such transfer and vesting, the provisions of section 7 of the Act requires payment of amount of rupees 78.26 lakh to the Company by the Central Government. Additional to this, the Central Government is also requires to pay annual interests on such amount at the rate of 4 per cent. The Central Government under section 14 of the Act empowered to appoint a Commissioner of Payments for the aforesaid purpose.

Further, the Act makes provisions as to management, control, superintendence, etc. in relations to such transferred undertakings, which should be vested with the Andrew Yule Company. And all persons under the charge of such management of the Undertaking prior to such transfer, are required to transfer and deliver all assets, accounts book, registers, etc. in relation thereto to the to the Andrew Yule Company. Also it is made clear that, the persons who were employed under the previous company in relation to transferred Undertakings, are also to be treated as an employees of the Central Government; and if such undertakings are transferred to the Andrew Yule Company then such persons are to be treated as employee of that company, on similar terms and conditions relating to their service. Section 13 makes provisions of provident funds, and etc. benefits for those employees.

The Act provides for immunities to the Central Government, officers, employees thereof and of Andrew Yule company and its authorized persons against the legal actions in relation to anything done or even in relation to the damages caused in good faith or under this Act. The Central Government can also delegate certain powers which are confirmed under this Act as aforesaid, to its authorized persons. Section 28 provides for certain penal provisions, including certain offences under the Act and also punishments therein. And the next provisions defines offences by the Companies and liabilities of the persons thereunder. The Section 30 of the Act provides for rule making powers of the Central Government. For removing any difficulties which would arise while effecting the provisions under this Act, the Central Government is further empowered to provide for the same by making consistent order. Finally, the Act sought to repeal the relevant ordinance being the Transformer and Switchgear Limited (Acquisition and Transfer of Undertakings) Ordinance, 1983 without affecting the actions taken in pursuance thereof.

by Faim Khalilkhan Pathan.