Transformer and Switchgear Limited (Acquisition and Transfer of Undertakings) Act,1983
Act No : 41
Section : PRELIMINARY
TRANSFORMER AND SWITCHGEAR LIMITED (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1983
41 of 1983
25th December, 1983
STATEMENT OF OBJECTS AND REASONS The Transformer and Switch-gear Limited was established in 1956 for the manufacture of transformers, switch-gears and other allied electrical equipments. The Company commenced production in
1957 in technical collaboration with Dominic works GMbh, West Germany, It has been incurring losses for a number of years and the accumulated losses at the end of October. 1982 were of the order of Rs. 306 lakhs as against the paid-up capital of Rs. 12.5 lakhs.
2. Efforts for the revival of the Company in the past had failed. Many schemes pre- pared for the revival of the Company could not be implemented for want of necessary finance. Further, such schemes cannot meet all the past liabilities of the company. Production in the Company had come to a standstill and wages to the workers were not being paid.
Restructuring the Company in order to bring about a balance between as- sets and liabilities was therefore considered to be an immediate necessity. This process could be achieved quickly only through nationalisation of the undertakings of the Company which would also result in the revival of the undertakings. The nationalisation of the undertakings will not only protect the employment of about 300 skilled workers in the city of Madras but also prevent loss of productive assets worth over Rs. 78 lakhs. The products of the Company also cater to the vital power transmission sector. The nationalisation of the undertakings will also preserve the high degree of sophisticated manufacturing skills developed over the years in the national interest. In view of these circumstances, it was considered necessary in the public interest to acquire the undertakings of the Transformer and Switchgear Limited and vest the said undertakings in Andrew Yule and Company Limited, a Government company. The Transformer and Switchgear Limited (Acquisition and Transfer of Undertakings) Ordinance, 1963 (11 of 1983) was accordingly, promulgated by the President on the 8th November. 1983. The Ordinance, apart from providing for the acquisition of the undertakings of the Company and vesting the same in Andrew Yule and Company Limited provided for payment of an amount to the Company for the acquisition, appointment of a Commissioner of Payments and other incidental and consequential matters.
3. The Bill seeks to replace the aforesaid Ordinance.-Gaz. of lnd" 2-12-1983. Pt. II, S 2. Ext p 14. (No. 43)
An Act to provide for the acquisition and transfer of the undertakings of the Transformer and Switchgear Limited with a view to securing the better utilisation of the available infra-structure thereof and to modernise and augment the production of transformers, switchgears and other allied electrical equipments by the said undertakings so as to sub-serve the interests of the general public by ensuring the continued supply of the aforesaid articles which are essential to the needs of the economy of the country and for matters connected therewith or incidental thereto.
WHEREAS the Transformer and Switchgear Limited are engaged in the production of certain articles mentioned in the
First Schedule to the Industries (Development and Regulation) Act, 1951, under the heading "ELECTRICAL EQUIPMENT";
AND WHEREAS the Company had been suffering heavy losses for a number of years with the result that a majority of the workers of the Company had been laid off and the affairs of the Company are being managed in a manner prejudicial to the interests of the Company and the public interest;
AND WHEREAS for the purpose of securing the better utilisation of the available infrastructure of the undertakings of the Company and for modernising and augmenting the production of transformers, switchgears and other allied electrical equipments by the said undertakings, investment of a large amount is necessary;
AND WHEREAS it is necessary to acquire the undertakings of the Transformer and Switchgear Limited to enable the Central Government to have such investments made so as to sub-serve the interests of the general public by the continuance by the undertakings of the Company of the production and supply of the aforesaid articles which are essential to the needs of the economy of the country;
BE it enacted by Parliament in the Thirty-fourth Year of the Republic of the India as follows:-
CHAPTER 01 PRELIMINARY
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