Section 1446 in Brentford Electric (India) Limited (Acquisition And Transfer Of Undertakings) Act, 1987
1446.
Object and Reason.- The Brentford Electric (India) Limited, Calcutta, (BEIL), established in 1964, has been in existance for about 23 years and has been engaged in the manufacture of regulators of upto 5000KVA, 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 200 persons.2. BEIL started incurring losses from 1975 and ran into serious financial diffuculties in 1976. The management of the company was taken over by the Central Government under section 18AA of the Industries (Development and Regulation) Act, 1961 and Andrew Yule and Company Limited, a Government company, was appointed as the 'authorised person' for managing its affiars. 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 taken 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, 1980-81, 1981-82 and 1985-86, the company earned profits. During the years 1982-83 and 1984-85, the undertaking incurred losses mainly due to labour problems and lockout.3. Considering the fact that the company had heavy losses on the date to take over, it is evident that it would never be able to service its old liabilities, though its current operations, without the drag of the pre take-over liabilities, are viable. The company cannot at the same time be run for an indefinite period under the provisions of the 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 to ensure uninterrupted supply of the 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 considered necessary to take over the undertakings of hte company.5. The Bill seeks to achieve the aforeside object. Apart from providing for the acquisition and transfer of the undertakings of the company, the Bill provides for the payment of an amount for such acquisition, vesting of the undertakings of the company in the Andrew Yale, a Government company, appointment of a Commissioner of Payments for the purpose of disbursing the amount payable to the company and for other incidental and consequential matters.[15th September, 1987.]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 Regulation) Act, 1951, (65 of 1951) 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 (65 of 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:-
