Brentford Electric (India) Limited (Acquisition and Transfer of Undertakings) Act,1987
Act No : 36
Section : PRELIMINARY
BRENTFORD ELECTRIC (INDIA) LIMITED (ACQUISITION AND TRANSFER OF UNDERTAKINCS) ACT 1987
36 of 1987
15th September, 1987
STATEMENT OF OBJECTS AND REASONS The Brentford Electric (India) Limited, Calcutta, (BEIL), established in 1964, has been in existence for about 23 years and has been engaged in the manufacture of regulators of up to 5000 KVA, rectifiers, special transformers, distribution transformers, etc. The products of the company are of high quality and are required for defence establishments, State Electricity Boards and atomic energy establishments. The company is at present employing about 200 persons.
2. BEIL started incurring losses from 1975 and ran into serious Financial difficulties in 1976. The management of the company was taken over by the Central Government under
section 18AA of the Industries (Development and Regulation) Act, 1961and Andrew Yule and Company Limited, a Government company, was appointed as the 'authorised person'for managing its affairs. The period of take over of the management of BEIL was extended from time to time and is presently stands extended up to the 25th November, 1987. At the time of take over, the accumulated losses of BEIL were Rs, 90.37 lacs and its liabilities to third parties aggregated to Rs. 87.33 lacs.
However, the sales turnover of the company has improved considerably in the post-take-over period and it has been able to turn the corner by 1979-80, thus establishing that its operations are technically and cominercially viable During the years 1979-80, 1980-81, 1981-82and 19g5-86,the company earned profits. During the years 1982-83 and 1984-S5, the undertaking incurred losses mainly due to labour problems and lock-out.
3. Considering the fact that the company had heavy losses on ths date if to take over, it is evident that it would never be able to service iis old liabilities, though its current operations, without the drag of the pre-take-over liabilities, are viable (sic). The company cannot at the same time be run for an in definite: period under the provisions ofthe Industries (Development and Regulation) Act, 1951.
4. Studies made to determine the future set up of the Company revealed that the undertakings of the Company should be nationalised in order to consolidate the gains of management and ensure uniterrupted supply of critical items required by defence establishments, etc. In view of the importance and high demand of the products manufactured by the company and the loss of employment to about 200 persons if the company were to be closed down, it is cosidered necessary to take over the undertakings of the company.
5. The Bill seeks to achieve the aforesaid object. A part from providing for the acquisition and transfer of the undertaking of the company, the Bill provides for the payment of an amount for such acquisition, vesting of the undertaings of the company in then Andrew Yulem a Governmnet company, appointment of a Commissioner of Payment for the purpose of disbursing the amount payable to the company and for other incidental and consequential matters. -Gaz. Of Ind. 14-8-1987, Pt. II , S. 2, Ext, p. 15 (No. 33).
An Act to provide for the acquisition and transfer of the undertakings of the Brentford Electric (India) Limited, with a view to securing the proper management of such undertakings so as to subserve the interests of the general public by ensuring the continued manufacture and production of electrical equipments which are essential to the needs of the economy of the country and for matters connected therewith or incidental thereto.
WHEREAS the Brentford Electric (India) Limited had been engaged in the manufacture and production of articles mentioned in the First Schedule to the Industries (Development and Regulationary Act, 1950, namely, electrical equipments;
AND WHEREAS the management of the undertakings of the Brentford Electric (India) Limited was taken over by the Central Government under Section 18AA of the Industries (Development and Regulation) Act, 1951.
AND WHEREAS it is necessary to acquire the undertakings of the Brentford Electric (India) Limited to ensure that the interests of the general public are served by the continuance by the undertakings of the company of the manufacture and production of the aforesaid articles, which are essential to the needs of the economy of the country. BE it enacted by Parliament in the Thirty-eight Year of the Republic of India as follows:
CHAPTER 01: PRELIMINARY
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