Kosangas Company (Acquisition of Undertakings) Act,1979
Act No : 28
Section : SHORT TITLE AND COMMENCEMENT
KOSAN GAS COMPANY (ACQUISITION OF UNDERTAKING) ACT, 1979
STATEMENT OF OBJECTS AND REASONS: Esso Standard Eastern Inc., a foreign company, had entered into a contract with Kosangas Company, and then a partnership firm, for bottling, transporting, marketing and distribution of liquefied petroleum gas produced in their refinery. The agreement expired on the 4th September, 1977. The partnership of Kosangas Company was dissolved with effect from the close of business on the 5th September, 1977 and Gocul Gas Private Limited has since been carrying on the business of Kosangas Company as sole proprietor.
2. In implementation of the policy for progressively securing that the ownership and control of the means and resources for bottling, transporting, marketing and distibution of liquefied petroleum gas are also vested in the State and thereby so distributed as best to sub serve the common good, it is proposed to acquire the undertaking of the Kosangas Company vested in Gocul Gas Private Limited as sole proprietor. The Bill accordingly, provides for the acquisition, in the public interest, by the Central Government of the said undertaking. Provisions have also been included enabling the Central Government to direct the vesting of the undertaking so acquired in a Government company, for the continuance of the contracts entered into in relation to the said undertaking for any service, sale or supply in India, and for the transfer of the services of existing whole-time emplyees of the undertaking to the Central Government or the said Government company. - Gaz. of India, 13-3-1979, Pt. II,
Section 2, Ext., p. 260.
An Act to provide for the acquisition, in the public interest, of the undertaking of the Kosangas company and thereby to secure that the ownership and control of the means and resources for bottling, transporting, marketing and distribution of liquefied petroleum gas are so distributed as best to sub-serve the common good and for matters connected therewith or incidental thereto.
WHEREAS the undertakings in India of Esso Eastern Inc., a foreign company, have vested in the Hindustan Petroleum Corporation Limited (a Government company within the meaning of the Companies Act, 1956) under the Esso (Acquisition of Undertakings in India) Act, 1974;
AND WHEREAS the agreement entered into by the Esso Standard Eastern Inc., on the 5th Day of September, 1967, with the Kosangas company then a partnership concern (whereby the former appointed the latter as distributors in certain areas for sale of its liquefied petroleum gas, packed in cylinders, to domestic, commercial and industrial customers), as continued by sub-section (1) of section 13of the Esso (Acquisition of Undertakings in India) Act, 1974, and modified under sub-section (2) of that section, expired on the 4th day of September, 1977;
AND WHEREAS it is expedient in the public interest to acquire the undertaking of the said Kosan gas company;
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 means and resources aforesaid, would by reason of such acquisition become vested in the State and thereby so distributed and utilized as best to sub serve the common good;
BE it enacted by Parliament in the Thirtieth Year of the Republic of India as follows:-
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be called The Kosan gas Company (Acquisition of Undertaking) Act, 1979.
(2) It shall come into force at once.
Read All Comments
