Smith, Stainstreet and Company Limited (Acquisition and Transfer of Undertakings) Act,1977
Act No : 41
Section : PRELIMINARY
SMITH, STANISTREET AND COMPANY LIMITED (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT,
1977 41 of 1977
17th December 1977
STATEMENT OF OBJECTS AND REASONS Messrs. Smith, Stanistreet and Company
Limited, Calcutta were engaged in the manufacture of drugs and pharmaceuticals which were essential to the needs of the country. The Company began to show steady decline in production from 1970 onwards and incurred considerable losses. The Company was also being mismanaged. After investigation into the affairs of the Company through an investigation Committee, the management of its undertakings was taken over on 4th
May, 1972 by the Central Government acting under section 18A of the Industries Development and Regulation) Act. 1951. The Indian Drugs and Pharmaceuticals Ltd., a Public Sector Undertaking was appointed as authorised Controller. As the Company had to be modernised and expansion undertaken in order to ensure the augmentation and distribution of the different varieties of essential pharmaceuticals and chemicals produced; by the Company arid to ensure the continued supply thereof in public interest, it was necessary to acquire the right title and interest of the undertakings of the Company. This was done by the Smith, Stanistreet and Company Limited (Acquisition and Transfer of Undertakings) Ordinance 1977. The Bill Seeks the replacement of the Ordinance.-Gaz. of India, 21-11-1977. Pt. II, S. 2, Ext., p, 698.
An Act to provide for in the public interest, the acquisition and transfer of the right, title and interest of the undertakings of Messrs Smith, Stanistreet and Company Limited,
Calcutta and for matters connected therewith or incidental thereto.
WHEREAS Messrs
Smith, Stanistreet and Company Limited, Calcutta were engaged in the manufacture and distribution of pharmaceuticals and chemicals which are essential to meet the needs of the public;
AND WHEREAS the management of the undertakings of the Company was in a manner highly detrimental to the public interest and had suffered heavy losses; AND
WHEREAS the management of the Company was taken over by the Central Government under section 18A of the Industries (Development and Regulation) Act, 1951;
AND WHEREAS for the purpose of reconstructing and rehabilitating the undertakings of the Company so as to subserve the interest of the general public by the augmentation and distribution of the different varieties of essential pharmaceuticals and chemicals produced by the said Company and to ensure the continued supply thereof, it is necessary to acquire the right, title and interest of the undertakings of Messrs. Smith, Stanistreet and Company Limited, Calcutta; BE it enacted by Parliament in the Twenty-eighth Year of the Republic of India as follows :-
CHAPTER 01: PRELIMINARY
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