Caltex [Acquisition of Shares of Caltex Oil Refining (India) Limited and of the Undertakings in India of Caltex (India) Limited] Act,1977
Act No : 17
Section : PRELIMINARY
CALTEX [ACQUISITION OF SHARES OF CALTEX OIL REFINING (INDIA) LIMITED AND OF THE UNDERTAKINGS IN INDIA OF CALTEX (INDIA) LIMITED) ACT, 1977
17 of 1977
23rd April, 1977
STATEMENT OF OBJECTS AND REASONS The Caltex Petroleum Corporation (a foreign company) had the ownership of, and control over, a significant portion of the petroleum products marketed and distributed in India. One of its subsidiaries, namely, the Caltex Oil Refining (India) Limited (an Indian company) was carrying on the business of refining crude oil and producing petroleum products in India and another of its subsidiaries, namely, the Caltex (India) Limited (a foreign company) was carrying on through its undertakings in India the business of marketing and distributing petroleum products.
2. In implementation of the policy for progressively securing that the ownership and control of the products of the nation's petroleum resources are vested in the State and thereby so distributed as belt to subserve the common good, Government entered into negotiations with Caltex for acquiring hundred per cent of the shares of Caltex Oil Refining (India) Limited free of encumbrances and the undertakings in India of Caltex (India) Limited. These negotiations were completed in November, 1976 and it was agreed that the acquisition of the aforementioned shares and undertakings should be completed before the end of that year. As Parliament was not insession and was likely to meet only in Feb., 1977, the Caltex [Acquisition of Shares of Caltex Oil Refining (India) Limited and of the Undertakings in India of Caltex (India) Limited] Ordinance, 1976, Was promulgated by the President on the 30th December, 1976. The Ordinance, inter alia, provided for the following matters namely:-
(i) acquisition of all the shares of Catlex Oil Refining (India) Limited and of the undertakings in India of Caltex (lndia) Limited;
(ii) empowering the Central Government to direct the vesting of the undertakings in India of Caltex (India) Limited so acquired in a Government company by notification;
(iii) transfer of the services of the existing employees of Caltex (India) Limited to the Central Government or the said Government company;
(iv) continuance of the contracts entered into by Caltex (India) for any service, sale or supply in India.
3. In pursuance of the power given to the Central Government to direct the vesting of the undertakings of Caltex (India) in a Government company, a notification had already been issued vesting the said undertakings in the Caltix Oil Refining (India) Limited which has become a Government company by virtue of the acquisition of its shares.
4. The Bill seeks to replace the said Ordinance.-
Gaz. of Ind-, 1-4-1977, Pt. II, S. 2, Ext., p. 72. An Act to provide, in the Public interest, for the acquisition of the shares of Caltex Oil Refining (India) Limited and for the acquistion and transfer of the right, title and interest of Caltex (India) Limited in relation to its undertakings in India and thereby to secure that the ownership and control of the petroleum products produced by the Caltexa Oil Refining (India) Limited, and marketed and distributed by the said undertakings in India, are so distributed as best to subserve the common good. WHEREAS the Caltex Petroleum Corporation (a foreign company) has at present the ownership of. and control over a significant portion of the petroleum products produced, marketed and distributed in India by reason of the fact that one of its subsidiaries, namely, the Caltex Oil Refining (India) Limited (an Indian company), is carrying on the business of refining crude oil and producing petroleum products in India and another of its subsidiaries, namely, the Caltex (India) Limited (a foreign company), is carrying on through its undertakings in India the business of marketing and distributing petroleum products;
AND WHEREAS it is expedient in the public interest that the shares of the said Caltex Oil Refining (India) Limited and the undertakings in India of the said Caltex (India) Limited should be acquired;
AND WHEREAS such acquisition is for giving effect to the policy of the State towards securing the principle specified in clause (b) of article 39 of the Constitution as the ownership and control of the material resources of the community, to wit the petroleum products produced by the said Caltex Oil Refining (India) Limited and marketed and distributed by the undertakings of the said Caltex (India) Limited, in India, would by reason of such acquisition become vested in the State and thereby so distributed as best to sub-serve the common good.
BE it enacted by Parliament in the Twenty-eight Year of the Republic of India as follows:-
CHAPTER 01: PRELIMINARY
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