The Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972
An Act to provide for the acquisition and transfer of the undertaking of the Richardson and Cruddas Limited, for the reconstruction of the register of its members and for matters connected therewith or incidental thereto.
Administered by. Ministry of Heavy Industries and Public Enterprises, Department of Heavy Industry · Other Acts of 1972
Preamble
THE RICHARDSON AND CRUDDAS LIMITED (ACQUISITION AND TRANSFER OF UNDERTAKING) ACT, 1972
ACT NO. 78 OF 1972
[30th December, 1972.] An Act to provide for the acquisition and transfer of the undertaking of the Richardson and Cruddas Limited, for the reconstruction of the register of its members and for matters connected therewith or incidental thereto.
WHEREAS the Richardson and Cruddas Limited, a company formed and registered under the Indian Companies Act, 1913 (7 of 1913), is engaged in the production of goods needed by the defence establishments, railways, steel plants and power projects;
AND WHEREAS the mismanagement of the said company by its erstwhile managing agents and Board of Directors had seriously affected the production and supply of goods by the said company;
AND WHEREAS it is not possible for the said company to provide for its proper management by a duly constituted Board of Directors in view of the existence of a large number of duplicate shares in the capital of the said company;
AND WHEREAS for ensuring, in the interests of the community, the continuity of production and supply of goods by the said company, it is expedient in the public interest to acquire the undertaking of the said company;
BE it enacted by Parliament in the Twenty-third Year of the Republic of India as follows:--
What this Act covers
Summary of the Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972
Objective
The Richardson and Cruddas Limited (Acquisition and Transfer of Undertaking) Act, 1972 was enacted to acquire and transfer the undertaking of Richardson and Cruddas Limited to the Central Government in order to ensure its continued operation in the public interest, protect employment, maintain the production of essential engineering goods, and resolve disputes relating to the company's shareholding.
Key Provisions
• Acquisition and Transfer: Provides for the acquisition of the undertaking of Richardson and Cruddas Limited by the Central Government and its transfer to a Government company.
• Vesting of Assets and Liabilities: Transfers all assets, rights, liabilities, contracts, and obligations of the undertaking to the Central Government and subsequently to the Government company.
• Protection of Employees: Ensures continuity of service and protects the pay, pension, gratuity, and other service benefits of employees.
• Compensation: Provides for payment of ₹30 lakh as compensation for the acquisition of the undertaking.
• Tribunal for Share Disputes: Establishes a Tribunal to determine genuine shareholders, resolve disputes relating to duplicate or fraudulent share certificates, and facilitate reconstruction of the register of members.
• Custodian and Management: Provides for the appointment of a Custodian to manage the affairs of the company and supervise the reconstruction process.
• Penalties and Rule-making: Prescribes penalties for violations of the Act and empowers the Central Government to make rules for its implementation.
Sections
Type to filter. 31 sections.
- 1Short title
- 2Definitions
- 3Undertaking of the old company to vest in the Central Government
- 4General effect of meeting
- 5Duty to deliver possession of property acquired and documents relating thereto
- 6Duty to furnish particulars
- 7Transfer of employees of the old company
- 8Payment of amount
- 9Formation and registration of a new company
- 10Management of the old company
- 11Custodian to be public servant
- 12Vacation of office by directors, etc., of the old company
- 13Constitution of a Tribunal
- 14Tribunal to call upon persons to make claims
- 15Determination of genuine shares
- 16No compensation for cancellation of spurious shares
- 17Power of Tribunal to entertain and dispose of claims for reimbursement
- 18Suits and legal proceedings, not to be commenced or proceeded with
- 19Decision of the Tribunal to be final
- 20Custodian to reconstruct register of members of the old company
- 21Custodian to issue fresh share certificates
- 22No annual general meeting of the old company to be held before the reconstruction of the register of members
- 23Custodian to file accounts until reconstruction of the register of members of the old company
- 24Penalties
- 25Offences by companies
- 26Offences to be triable by a Magistrate of the first class and not to be compoundable
- 27Protection of action taken in good faith
- 28Contracts, etc., in bad faith may be cancelled or varied
- 29Power to terminate contract of employment
- 30Power to remove difficulty
- 31Power to make rules
Related Acts
- The Hind Cycles Limited and Sen-Raleigh Limited (Nationalisation) Act, 198033 sections
- The Dalmia Dadri Cement Limited (Acquisition and Transfer of Undertakings) Act, 198132 sections
- The Inchek Tyres Limited and National Rubber Manufacturers Limited (Nationalisation) Act, 198433 sections
- The Tyre Corporation of India Limited (Disinvestment of Ownership) Act, 20076 sections
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Every one of the 31 sections of this Act has its own page. This page is not a substitute for legal advice.