Section 1269 in The Alcock Ashdown Company Limited (Acquisition Of Undertakings) Act,1973
1269.
Messrs. Alcock Ashdown and Company Limited was incorporated on 17-3-1884 at Bombay. The Company owns two plants, one at Bombay and the other at Bhavnagar. Its activities which are included in the list of priority industries, comprise of Light and Heavy Structurals, Transmission Line Towers. Railway Points and Crossings, Ship Repairs, Boat Building, Marine Diesel Engines. etc.2. The Company which was making substantial profits till 1965 started declining from 1969 onwards and came to a close in January, 1971. The affairs of the Company were subsequently investigated by the Government through an Investigation Committee and the report revealed that while the deterioration in the performance of the Company was caused by a number of factors, the primary cause was the serious lapse on the part of the management in running the Company.3. After the closure of the Company, on the application of one of its unsecured creditors an order for the winding up of the Company was made by the Bombay High Court on 13-1-1972. After the winding up order, on the application of the Bank of Maharashtra one of the secured creditors of the Company, a Receiver was appointed by the High Court for looking after the interests of the secured creditors. The Official Receiver has now invited tenders regarding the auctioning of the properties of the Company at Bombay and Bhavnagar.4. As the Company was formerly engaged in the boat building, ship repairs and the production of marine diesel engines, and was also engaged in the production of goods which are essential to the needs of the country in general and defence departments in particular, the necessity to revive the activities of the Company for the production of goods for the various strategic use was carefully considered. After considering all the aspects of the matter, it is felt that it is expedient, in public interest, to acquire, on payment of a sum of rupees one crore, the undertakings of Messrs. Alcock Ashdown and Company Limited at Bombay and Bhavnagar. The Bill seeks to achieve the said object. - Gazette of India, 28-11-1973, Pt. II, Section 2, Ext., p. 968.Ad 33 of 1974.- Section 4 (1) of the AlcockAshdown Company Limited (Acquisition of Undertakings) Act, 1973, specifies the properties which are deemed to be included within the ambit of the expression "undertakings of the company". A doubt has been expressed as to whether book debts due to the company and loans and advances made by the company, and moneys recoverable by the company from its directors or shareholders by way of misfeasance or other proceedings arealso included within the ambit of the expression "undertakings of the company". The Central Government has been advised that by way of abundant caution, a clarificatory amendment should be made to make it clear that the expression "undertakings of the company" does not include book debts due to the company and loans and advances made by the company and any amounts recoverable by the company from its shareholders or directors. Accordingly the Act was amended by an Ordinance promulgated by the President to make explicit what was already implicit in section 4(1) of the Act.2. The Bill seeks to replace the Alcock Ashdown Company Limited (Acquisition of Undertakings) Amendment Ordinance, 1974. - Gazette of India, 1-8-1974, Pt-II. Section 2. Ext., p. 792.Act 38 of 1988.- The undertakings of the Alcock Ashdown Company Limited comprised of two units, one in Bombay and the other in Bhavnagar, Gujarat which were acquired by the Central Government through the Alcock Ashdown Company Limited (Acquisition of Undertakings) Act, 1973. Immediately after the acquisition of the undertakings, the Central Government, in exercise of powers under section 8 of the Act entrusted the management, and administration of the two units viz.; (1) Bombay unit and (2) Bhavnagar unit to (1) Mazgaon Dock Limited, a Government of India undertaking under the Ministry of Defence and (2) Industries Commissioner, Government of Gujarat, respectively. Since then, the respective managements of Mazgaon Dock Limited and Government of Gujarat have been running the units.2. Prior to the acquisition of the undertakings of the company both the Mazgaon Dock Limited and the Government of Gujarat had expressed their keen interest in ultimately owning the respective units in public interest. While acquiring the undertakings of the company, the Central Government was also of the view that the ownership of the two units would in due course be transferred to them who had been managing these units.3. While the Central Government was actively considering the transfer of the two units, a question arose whether under the existing provisions of the Act, the units could be transferred. After examining the provisions of the Act, it however appeared that in the absence of specific provisions in the Act, the Central Government cannot transfer the right, title and interest vested in it to any other Government or organisation.4. The Bill seeks to revest the property of the Bhavnagar and Bombay units of the undertakings of the Alcock Ashdown Company Limited in the State Government of Gujarat and Mazgaon Dock Limited, respectively. The Bill also seeks to safeguard the interests of the existing employees of Bhavnagar unit by continuing their employment, provide for the transfer of Provident fund and other funds to the State Government and for the saving of all contracts, deeds and bonds, to which the Central Government is a party in relation to the said unit. - Gazette of India, 14-12-1987, Pt. II, Section 2, Ext., P. 5 (No. 65).[14th December, 1973]An Act to provide for the acquisition of the undertakings of the Alcock Ashdown Company Limited for the purpose of ensuring rational and co-ordinated development and production of goods essential to the needs of the country in general, and defence department in particular and for maters connected therewith or incidental thereto.
